Morning Update

Koizumi has lost the vote on what he called the biggest 'reform' in a century, and calls for election. How's my positions doing? Yen has since strengthen from 112.60 to the current level 112.02, hence I am still hopeful about my medium-term target.

Although I am quite happy about the easy ride of my GBP/USD position, I've been complaining about the poor fill of its opening price by the collective2 site last night. I am expecting 1.7750 level rather than 1.7785.

Profit Booked; New Breakout: EUR/CHF

"The market is looking to take a bit of a breather.''

I have decided to book my profits and stay away from yesterday positions. There could be significant fundamental developments ahead of the interest-rate decisions and US job report. Yesterday sizeable profit has propelled myself back into the positive region in collective2 site. See my trades here.

Meanwhile, by being conservative, I am trading (sold) EUR/CHF on the technical side today due to a recent chart breakout.

Breakout Confirmed: EUR/USD, GBP/USD & USD/CHF

"Sentiment is pretty bullish for the euro at the moment."

As much anticipated, the bullish price action this morning has extended the Euro position to nearly 125-pip profit. Moreover, the in-house system has also managed to raise signals for GBP/USD and USD/CHF last night. As a result, I have bought GBP/USD from yesterday price of 1.7716 and sold USD/CHF from 1.2763. I have opened these positions at collective2 and hopefully I can recoup my losses from last week.

New Trade: EUR/USD

"Recent moves by central banks in Asia and elsewhere have led to dollar selling and euro buying.''

I bought the euro at 1.2182 last night, and the position has already geared into a 40-pip profit this morning. Last week, I suffered a minor losses, as a a result of uncertainty and lack of vision. After reviewing my technical charts last night, I am expecting some trend reversals in this two weeks.

The euro is currently the first to lead the pack, however, possibly a false breakout for Yen (still uncertain after recent bank moves). Will continue to updating the situation.

One Week After Yuan Revaluation

"People who bought the yen on speculation of further strength in the yuan sold it back."

"News is expected to remain robust for the dollar."

The market is seemingly unpredictable for the past week. There are a lot of ongoing fundamental rather than technical moves in response to the recent Yuan revaluation. I am now slowly recover from the aftermath of holding short position on yen and by not adapting quickly enough for the possible trend reversal. A possible implication for the future is to stay away from the market as soon as abnormality has been identified.

I have to admit scalping in a shorter time frame (minutes) can yield better results than swing (days) during the time of uncertainty and fundamental adjustments.

Trading via Action Index

Based on swing trading strategy, I produce report which delivers trading signals on a basket of 11 currency pairs at end-of-day. I had a second thought on my yesterday report (above). I have since re-weighted my index in order for them to yield the following actions in future:

For buy,
Group all indexes with value between 7.01 to 10 in Buy section
Sort and rank them in ascending order, e.g.
1. USD/JPY 111.94 (7.33)
2. EUR/USD 1.2054 (7.67)
3. EUR/JPY 134.93 (9) Trend (15 days)
4. EUR/CHF 1.5600 (9) Trend (22 days)
Choose 1 and 2 as confirmed buy for the next trading day

For sell,
Group all indexes with value between -7.01 to -10 in Sell section
Sort and rank them in descending order, e.g.
1. GBP/USD 1.7485 (-7.33)
Choose 1 and 2 as confirmed sell for the next trading day

For close/no position,
Group all indexes with value between -7 to -7 in Close section
e.g.
GBP/CHF (-7) and etc.

Things should become clear and straightforward from today onwards.

Looking Forward to a New Week

All good things come to a halt. Last week performance: -377. Actually, I could salvage some of the losing positions by at least 200 pips if stop loss limits (of 100 pips) were in place. Therefore, I will be experimenting in next week by mounting reasonable limits on my opening swing trades. Also, may not want to hold too many positions at the beginning of the week, ideally start with 1~2 positions.

Based on this, Monday trades will be as follows:
Long EUR/USD
Long USD/JPY
Avoid GBP/USD
Avoid GBP/CHF

Best Two Trading Weeks

I have adopted a more laid-back swing trading approach due to the uneasiness of constant monitoring on the live price movements. The new approach has opened myself to a range of opportunities on all popular currency pairs for the last two weeks. Analytical work is only required in the evening session to identify and sort all the monitored positions according to their potentials.

I have summarised all my trades for the last two weeks at the following webpage:
http://tradingforaliving.bravehost.com/report050627.html

The two-week trial efforts have yielded +1042 and +560 points respectively. Better than expected results.

Daily Forex Evaluation by Advanced Index

Here is a typical report that I will produce at the end of each trading day. Basically, it tells me about the latest arising opportunistic technical situations. The specially formulated advanced index helps me to gauge the next market moves and hence recommending me on the potential trades.

New Daily Forex Strategy

Focussed information rather than superfluous price data is critical in the world of financial trading. Understand this, I have recently developed a unique forex trading system used for finding trading opportunities through the fusion of technical information from a range of data processing methods.

My system scans the market on end of day basis and subsequently ranks, sorts and analyses all popular currency pairs. As a result, I enter long and short based on the calculated advanced index for each pair. The trading time frame will be 1 to 3 days.

The recommended positions based on 29-June report are as follows:

Long on EUR/JPY at 133.29

Long on USD/JPY at 110.47

Short on GBP/USD at 1.8044

Short on AUS/USD at 0.7616