http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/ Examining the Forex Markets with a Fine Tooth Comb Mon, 08 Sep 2008 14:04:03 +0000 http://wordpress.org/?v=2.0.5 http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-11635 Sat, 30 Jun 2007 07:50:36 +0000 http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-11635 [...] Our Experiment using this forex trading plan for trading the Aussie dollar has not yielded anything for two weeks. It actually yielded a loss of 87 pips. I’m actually stopping the experiment there after two and a bit weeks in operation. So what conclusions can we draw from this forex experiment? Well, I for one can say that a dumb and blind system like this one is not effective. The system relied solely on the 50/50 odds of a coin as well timing the markets. But hang on, what if I went the opposite side of each trade in the experiment - you could have actually made 87 pips trading forex - which is a modest income by anyone’s standards for two weeks worth of trading. Hey - at least your doing something consistent right? But on the other hand - the system lost 87 pips - which can be a substantial amount of anyone’s trading capital. when I’m feeling up for it, I’ll try out a more intelligent trading system (but simple) a little later on. It’s interesting to see that this system didn’t make much money - and didn’t take advantage of the volatile movements of the Aussie dollar over the past two weeks: hitting 85 cents then retracing back to 84 cents and below then coming back to test 85 cents yesterday night. Economic data releases in Australia this week: [...] […] Our Experiment using this forex trading plan for trading the Aussie dollar has not yielded anything for two weeks. It actually yielded a loss of 87 pips. I’m actually stopping the experiment there after two and a bit weeks in operation. So what conclusions can we draw from this forex experiment? Well, I for one can say that a dumb and blind system like this one is not effective. The system relied solely on the 50/50 odds of a coin as well timing the markets. But hang on, what if I went the opposite side of each trade in the experiment - you could have actually made 87 pips trading forex - which is a modest income by anyone’s standards for two weeks worth of trading. Hey - at least your doing something consistent right? But on the other hand - the system lost 87 pips - which can be a substantial amount of anyone’s trading capital. when I’m feeling up for it, I’ll try out a more intelligent trading system (but simple) a little later on. It’s interesting to see that this system didn’t make much money - and didn’t take advantage of the volatile movements of the Aussie dollar over the past two weeks: hitting 85 cents then retracing back to 84 cents and below then coming back to test 85 cents yesterday night. Economic data releases in Australia this week: […]

]]> http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-10986 Mon, 18 Jun 2007 00:24:11 +0000 http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-10986 [...] There isn’t any yield yet from our experimental trading plan. So the Australian Dollar experiment got off to a bad start… is the coin just unlucky? The first two days was 100% unlucky. On Thursday, our trade opened LONG 83.94 cents at 8.50am Sydney time and closed at 83.75 cents: the trade ended with a 19 pip loss - remember, our trading plan is to exit if it hits 30 pips against our position or 60 pips if it goes towards our position. Last Friday, the coin was tails so we went short at 9am opening the position at 83.58 cents. 12 hours later we closed the trade at 83.62 cents - 4 pips loss. Unlucky? Well we’ll keep track with this progress for a while… [...] […] There isn’t any yield yet from our experimental trading plan. So the Australian Dollar experiment got off to a bad start… is the coin just unlucky? The first two days was 100% unlucky. On Thursday, our trade opened LONG 83.94 cents at 8.50am Sydney time and closed at 83.75 cents: the trade ended with a 19 pip loss - remember, our trading plan is to exit if it hits 30 pips against our position or 60 pips if it goes towards our position. Last Friday, the coin was tails so we went short at 9am opening the position at 83.58 cents. 12 hours later we closed the trade at 83.62 cents - 4 pips loss. Unlucky? Well we’ll keep track with this progress for a while… […]

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