Strategy
Technical
Trading
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FX Strategy

17 Feb 2020
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 – 17 February 2020

Our order to buy XAUUSD (Spot Gold) was triggered on Friday, meaning we are now long. Regarding this trade, we recommend a slight change to the trailing stop loss level, lifting the stop to US$1547.70. We also recommend a change to the stop loss for the USDTRY position to 6.0140. We have no new trade recommendations for today, while our orders to go long USDJPY and XAGUSD (Spot Silver) both remain as pending.

InstrumentStatusTrade entry dateLong shortCurrent priceEntryDurationEntry price limitStop loss limitTargetValue at riskUnitsProfit loss
USDJPY
Pending
14 Jan 20
Long
109.847
Stop
GoodTillCancel
110.180109.450112.550$742.6175,400$0.00
USDTRY
Open
30 Jan 20
Long
6.0530
Stop
GoodTillCancel
5.98306.01406.1660$361.7737,300$649.32
XAGUSD
Pending
14 Jan 20
Long
17.744
Stop
GoodTillCancel
17.81017.39019.360$744.301,190$0.00
XAUUSD
Open
14 Jan 20
Long
1,584.400
Stop
GoodTillCancel
1,581.4801,547.7001,673.250$765.1514$60.88

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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