Strategy
Technical
Trading
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FX Strategy

1 Jul 2022
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.

Minimum Investment Amount and Period

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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.

Important notice:

Quantities and calculations in this post use the Rivkin Model and might differ from yours. This post does not constitute an invitation to buy or sell any securities. Before conducting any transaction, make sure you fully understand the terms of the product and the relevant risk factors involved. You can seek professional advice to determine the appropriateness and cost of any transaction from the broker you use.

Trading FX carries significant risk and is not suitable for all investors. You may lose more than you invest, and you do not own, or have any interest in, the underlining asset. Please make sure you fully understand the risks involved before entering any transaction.

SHOW COMMENTS / QUESTIONS (19)

19
Comments

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Graeme S.

Hi, My GBPUSD was not stopped out in overnight trading – why the discrepancies (see comment below re USDZAR not stopped out?

Graeme S.

Hi, I’ve just noticed that my loss on USDZAR (not stopped out, contrary to the advice above) is greater than yours (currently AUD127 rather than 77.01) – despite identical position size. I now realise that my entry price is quite different than yours & that my entry price for my other FX/PM positions is also different to yours, despite entering the exact buy/sell price recommended: Trade Your Entry My entry USDZAR 15.15 15.12284 GBPUSD 1.3565 1.35702 USDMXN 20.45 20.46675 XAGUSD 23.72 23.7653 XAUUSD 1824.25 1825.45 Is this just because of slippage in the order? If this is typical, then the… Read more »

Graeme S.

The USDZAR entry price etc appear to be copied from the USDJPY trade above.

Graeme S.

Hi,
Will the FX Strategy Updates be published through the Christmas/New Year period?

James Woods

Hi Graeme,

The FX Strategy will continue to be posted on non-public holidays, so the 29th to 31st of December resuming again on the 4th of January.

Regards,

James

Graeme S.

Hi,
My USDSEK Stop Buy order at 9.168 was not triggered overnight. Why?

James Woods

Hi Graeme,

Without having access to your trading account it is difficult to say, however your broker should be able to explain the reason. As an example, it could be that based on the spreads offered by a broker the price did not trade above the stop buy as this was close to the high of the session.

We recommended leaving this as a pending buy order to trigger tonight should the price move higher.

Regards,

James

Graeme S.

Hi James,
I thought you would have access to our Saxo trading account within our Rivkin SMSF. Also, I thought that Saxo (the broker recommended by Rivkin) would replicate any of the Rivkin FX trades – i.e. that if Rivkin says that an order has been triggered, then it will be triggered in my account.
Cheers

James Woods

Hi Graeme, Apologies, I did not see you had the Saxo account before responding. We use the high (low) of the day in order to determine if a stop order is triggered, however, there are times when the spread between the bid and offer will result in the stop order not being triggered, most likely when a “stop if bid” order is used when a buy order is placed. There should also be an option to use a “stop if offered” order. In this case, it looks as though the bid had a high of 9.16787 while the high of… Read more »

Graeme S.

Hi James,
My Saxo/Rivkin account does not have “stop if bid” & “stop if offered” orders. The options are ‘Stop’ & ‘Stop Limit’. I assume this means that there needs to be a trade at or higher than the Stop Buy Price to trigger the order. If so, this should correspond to your “We use the high (low) of the day in order to determine if a stop order is triggered”? Regardless, i suggest there needs to be alignment between Rivkin’s determination of whether an order has been triggered and the customer’s experience.
Cheers

Anonymous User

is the XAUUSD the same as “GOLD CASH” in the CMC platform?

Anonymous User

How to invest in the AUSUSD?
Is there a link? A code?

Thanks

James Woods

Hello,

This is executed through a broker that allows FX/CFD trading. At Rivkin, we use either CMC’s CFD platform or Saxo Capital Markets however you can use a broker of your preference that offers this type of trading.

Do you currently have a trading account? If not our customer service team can help you open an account with either CMC or Saxo.

Regards,

James

Scott M.

What platform are you using to by the Bitcoin trade ?
i am unable to find it on Saxo at present ?

James Woods

Hello Scott,

There are a number of platform providers that allow Bitcoin trading, such CMC’s CFD platform. Plus500, City Index etc.

With Saxo, I believe exposure is only available through ETFs including BTCE (Euro) and GBTC (USD).

Regards,

James

Corey P.

I have CMC markets and Saxo set up, but can’t seem to find how to short or go long BTC?

Graeme S.

Hi Oliver,
Could we have a FX Performance Update please? The last monthly update that I can find is dated 2 Dec 2019.

Graeme S.

Hi. Could you please explain why a target price is used, rather than continuing to use a trailing stop loss until the trade is stopped out? I understand that in some cases using a target price has resulted in a better profit than would have resulted from continuing to use a trailing stop loss, but there are other cases where the reverse is true. Also, how is the level of the target price determined? Thanks!

Oliver Gordon

Hello Graeme, The reason we use a target level is that we have found over the long run (i.e, across a large number of trades), we are better off to have a target in the market than simply use a trailing stop loss. FX and metals prices rarely trend uninterrupted for a long period of time, so the idea of the target is to exit the position and lock in the profit, ahead of the inevitable correction in price. If we only run a trailing stop loss, we would likely need to give the positions more leeway, by placing the… Read more »

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