Strategy
Technical
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FX Strategy

10 Dec 2019
By
The FX strategy is a short term trading strategy that scans for trades on a daily basis across a series of major currency pairs as well as some commodities.

Latest Update – 10 December 2019

We have no new trade recommendations for this morning, while our order to go long the AUDUSD remains pending. Regarding our current open positions, stop loss changes are required for the GBPUSD, NZDUSD, and USDTRY.

InstrumentStatusTrade entry dateLong shortCurrent priceEntryDurationEntry price limitStop loss limitTargetValue at riskUnitsProfit loss
AUDUSD
Pending
5 Dec 19
Long
0.6823
Stop
GoodTillCancel
0.68620.67880.7041$727.9267,500$0.00
EURUSD
Open
4 Dec 19
Long
1.1063
Stop
GoodTillCancel
1.10951.10471.1419$139.0459,500$-278.08
GBPUSD
Open
26 Nov 19
Long
1.3139
Stop
GoodTillCancel
1.29431.30571.3278$503.4241,600$1,203.31
NZDUSD
Open
2 Dec 19
Long
0.6544
Stop
GoodTillCancel
0.64390.65180.6747$208.3554,300$841.43
USDSEK
Open
21 Nov 19
Short
9.5290
Stop
GoodTillCancel
9.61109.54409.2020$73.3632,000$401.04
USDTRY
Open
27 Nov 19
Long
5.8080
Stop
GoodTillCancel
5.77505.74505.9980$522.5832,400$273.73

FX STRATEGY

The strategy identifies periods of low volatility within the context of a trend. A stop entry is then place, which will result in an open position should the price break out of the consolidation pattern in the direction of the prior trend. Each trade is issued with a stop loss and target level. The recommended volume will often differ between recommendations, and is determined by the volatility of the instrument traded. However each trade has a recommended volume as to have the same initial risk of US$500.

ABOUT THE STRATEGY

The Rivkin FX and Liquid Markets strategy will be provided with ad hoc trade recommendations that could come on any trading day. Typically, we enter a trade using a stop entry, meaning that the price must move in our desired direction before the trade is opened. Each trade comes with a stop loss and target level. The stop loss level is typically updated on a daily basis, and trailed behind the price as it moves in our favour. This has the effect of either reducing risk or locking in profits. There is also a time stop, whereby trade duration is limited to a maximum of 20 days.

INVESTMENT CHARACTERISTICS

The FX trading strategy is based on daily chart analysis, and the individual trades have a typical trade duration of between 4 and 8 days. While this may seem short as compared to our stock market recommendations, it is considerable longer than many other intra-day FX services. The FX strategy is a series of individual trades, meaning trades are managed on their own merits, and not as a portfolio. There will be times when there are quite a few trades open at once, while at other times, activity will be less.

HOW TO FOLLOW THIS STRATEGY

Daily monitoring is required in order to follow the FX Strategy. Each morning, at around 10am, we will publish the new trade recommendations as well as update any stop loss and target levels for current open positions.

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