EurOnly

[paulchaney]

Sun. around 6pm. est. time I'll be posting calls on Eur/Usd.
I'm moving over here from intraday forum, my trades seem to be
a longer time span than others there.
Formerly known as Happy Strat. we have changed to "EurOnly".
Why? because we're going to concentrate on the pair that my
strat. Showed the highest expectancy.
_Currently -103 on money tec.

[paulchaney]

Trade for Aug. 01-06 Eur/Usd

strategy A Sell 1.2140

strategy B Buy 1.1945

[paulchaney]

Sell at 1.2140 executed. than S/L hit at 1.2265.

Total on Moneytec -228 pips.

How long will I trade this strategy? It's still showing a positive
expectancy, and I'm up overall for the past year (private acc.)... So let's keep moving forward.

[Dave Floyd]

Paul,

Seems logical to me, I find intra-day with FX is "special situation" only. Granted I am sure there are those that do it, but in talking with colleagues of mine at State Street Bank and Goldman, the real short-term stuff is not typcially done.

Dave

[Gamma_Jammer]

Well Goldies and State Street see a lot of customer flow from real money (i.e. pension fund / mutual fund etc) and hedge fund clients, so in those cases, the trading is indeed longer term.

But any shop that sees decent business (and State Street in particular have a very large customer base on account of their global custody business) will have a spot desk that will trade around their order book. If you have an order to buy EUR 300 Mio at say 1.2060, you're not just gonna sit on the bid at that level and fill the customer when you get some Euros. You're gonna be buying ahead, selling a few out 40 points higher, buying them back etc.

And that sort of intraday action is more than enough for the day traders on this forum to get their piece of the action as well. And dont forget someone has to be there to take the other side of these trades. If it was just the longer term accounts you're talking about, there wouldn't be much of a market to speak of, as most fund managers are sheep, and tend to be putting on pretty much the same trades at roughly the same time.

[Dave Floyd]

You are correct, however, trading based on order flow is a whole different ball game. I was referring simply to taking positions on a short-term basis without the advantage of order flow.

Again, I know some traders short-term trade FX, just my 2 cents. It is similar to when I started as a trader on the equity side in 1994, I was a hardcore scalper, yet many colleagues said they just did not "get it" and found their sweet spot as swing and position traders.

Dave Floyd
Aspen Trading Group

[paulchaney]

There will be no more EurOnly. I'm going to pull the plug on this
strategy. Yeah it can make money, but when next year? It takes
weeks to set up, than some trades fail. So you end up with only
a few trades a year.
I was only trading 1% so we basicly lost nothing, plus we had already covered the lose briefly with nEuro strategy. Which uses
22% of capital, with 1% of total capital being average stoploss.
So from now on look for nEuro strategy in intraday rec.

PaulRchaney
http://www.geocities.com/paulrchaney/pei.html