Core Concept - Historical Testing by FX Engines[+] expand
Historical Testing Risk assessment is a critical element of money management. To gauge risk in advance of live trading, sophisticated investors employ a historical testing system. However, not all historical systems are capable of delivering complete risk assessments, and choosing the wrong tool could lead to poor live trading results.
Post Greenspan Hesitation and Opportunity With the end of the Greenspan era, Forex traders now face a period of fundamental uncertainty. The Forex market is now on a tight rope that will vibrate with every economic release. This is not a bad set of circumstances because it will result in [full report]
Weekly Currency Wrap-up The currency markets have been dominated by interest rate decisions and expectations over the past week.
The US Federal Reserve delivered the expected 0.25% increase in interest rates to 4.50%, the 14th consecutive increase. The FOMC meeting was also the last chaired by Alan Greenspan who has [full report]
Post Greenspan Hesitation and Opportunity With the end of the Greenspan era, Forex traders now face a period of fundamental uncertainty. The Forex market is now on a tight rope that will vibrate with every economic release. This is not a bad set of circumstances because it will result in [full report]
Most successful FOREX traders use a handful of diverse trading strategies. Which strategy used may depend on the particular currency pair, recent price action or patterns, market volatility and/or a myriad of other variables.The simple fact that a trader needs an arsenal of strategies suggests the need for at least [full report]
And Now... More of the Same! With all the excitement the US Equity markets has to offer, I suppose that every bit of excitement does come with its fair share of uninspiring action. It's a package deal. I allowed 10 days to go by since my last report, hoping (praying) [full report]
The S&P500 break-out this week was to a new year-to-date high, and also into levels unseen since 2001. This is great news for US investors, but for traders, such a breakout is really just another little inch higher, in a series of "inching higher" for well over a year now. [full report]
One of the cardinal rules of good trading is to always have an exit point before you ever enter into a trade. This is your worse case risk for the trade. It’s the point at which you would say, “something’s wrong with this trade and I need to get out [full report]
World Markets To the delight of US investors, the S&P500 achieved another step into 4 year highs this past week. While both the DOW and the NASDAQ-100 continue to trail the S&P500, they are not too far behind their own multi-year high points. This has been quite a recurring [full report]
Most traders have heard of seasonal patterns, something which is mostly associated with commodities. The foreign exchange market also has calendar patterns which influence trading, and just like in commodities, traders can take advantage of them to improve their odds for success and profits.Monthly PatternsNearly all currency pairs have one [full report]
Fresh Volatility While the overall weakness of the US Equity Markets this summer has been a source of much concern for long-term investors, short-term traders however are relishing in the abundance of volatility that has entered the markets during this time. As discussed in previous issues, the markets weakness is [full report]
What Will Collapse Housing Prices? The Grand Disconnect 89 Booming Cities Where's The Unemployment From Housing? Two Price-Break Triggers The Fed to the Rescue? Some Observations on The Big EasyThis week I am in New Orleans at the annual New Orleans Investment Conference and quite frankly with so many good [full report]
The market moves of Feb 27th, when the Dow suffered its worst day in 4 years, was a classic case demonstrating the reality of inter-market phenomena and the illusion of a disconnect between fundamentals and technicals in market moves. Those who claim that fundamentals don' t count need to reassess [full report]
The Australian Dollar smashed through resistance to reach a new 10-year high against the U.S. Dollar last week (see figure 1). The Aussie was also dominant against the Euro, the British Pound, and the Canadian Dollar, among others.Figure 1: Weekly chart shows the Australian Dollar breaking through resistance vs. the [full report]
Several weeks have gone by since we've covered the US Equity Markets, and it's about time that we do, particularly in light of some very interesting developments in price behavior recently. The sell-off on February 27th was a real shocker to most participants, as such a violent one-day decline had [full report]
It's morning in Anytown, USA. People wake up and go to work, leaving behind a huge investment - a house, the value of which is measured in U.S. dollars. At the end of the week they receive a paycheck that is valued in U.S. dollars. They invest some of this [full report]
It seems like just a short time ago the markets were going through plenty of wide intra-day gyrations that provided us E-mini traders with extensive opportunities to profit most every day. For the time being this is no longer the case. What happened?
In the last two weeks we have been [full report]
Q) I love your newsletter, keep up the good work! Everyone keeps talking about having a trading plan, but as a newbie it is hard to know what items should be included in a trading plan. Do you know of any good guidelines for creating a trading plan?
Ed Ponsi) Thank [full report]
I'm writing to you from London this week, where the currency market is a prime topic of discussion. Forex is on the front page as the Great Britain Pound has finally done it, reaching the long-awaited landmark of 2.0000 vs. the U.S. Dollar. In simple terms, this means that one [full report]
Our article this week focuses on a common issue that falls under the Risk Management Department (as opposed to the "Technical Analysis" Department). Over the course of the last 10 years, I have been privileged to be in constant contact with all kinds of professional, independent traders. Once in a [full report]
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