27 Nov 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.
Minimum Investment Amount and Period
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Period
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| Stock code | Stock name | Sector | Current price | Return 12m | Mom rank |
|---|---|---|---|---|---|
NVDA | NVIDIA Corp | Information Technology | $549.46 | 214.71% | 1 |
AMD | Advanced Micro Devices Inc | Information Technology | $84.48 | 199.75% | 2 |
DXCM | DexCom Inc | Health Care | $374.89 | 177.95% | 3 |
ETSY | Etsy Inc | Consumer Discretionary | $134.56 | 144.28% | 4 |
AAPL | Apple Inc | Information Technology | $113.16 | 113.35% | 5 |
REGN | Regeneron Pharmaceuticals Inc | Health Care | $581.64 | 107.25% | 6 |
SWKS | Skyworks Solutions Inc | Information Technology | $147.27 | 101.64% | 7 |
WST | West Pharmaceutical Services I | Health Care | $290.33 | 100.43% | 8 |
NOW | ServiceNow Inc | Information Technology | $491.54 | 99.52% | 9 |
PYPL | PayPal Holdings Inc | Information Technology | $191.66 | 97.47% | 10 |
NFLX | Netflix Inc | Communication Services | $505.87 | 96.81% | 11 |
QRVO | Qorvo Inc | Information Technology | $131.08 | 89.28% | 12 |
AMZN | Amazon.com Inc | Consumer Discretionary | $3,099.96 | 88.02% | 13 |
ADBE | Adobe Inc | Information Technology | $478.98 | 87.32% | 14 |
CTLT | Catalent Inc | Health Care | $88.85 | 83.45% | 15 |
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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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.
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Hi Oliver,
Could we have a FX Performance Update please? The last monthly update that I can find is dated 2 Dec 2019.
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!
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 »