Asia post Friday’s NFP miss has seen US yields continue to tick higher with 10y trading at 1.5950% again afterFriday’s brief dip below 1.5%. It appears the market is continuing to internalise the beat in monthly AHE (0.7%MoMvs 0%e), which has bolstered short term inflation worries. This builds on recent bullish commodities price actionand input price trends in ISM data. Consequently we see the USD supported in parts, despite broader benign risksentiment exhibited in equities. As a result, commodity currencies trade flat overnight, with EUR marginally lower. GBP is the outlier gaining 0.3% to 1.4020 currently after no SNP majority post elections. Looking ahead, NOK CPI and SEK Riskbank minutes are the main data points due in G10. We also see Fed’sEvans on the slate later in the day. EM has no data of note today.
Fundamental views need to be verified by technical views, otherwise the fundamental view maybe wrong. Technical views need to be supported by fundamental analysis, otherwise it maybe a false signal or the trend may not develop very well. When they have the same direction, we may have a potential high convinced trading opportunity；If not, we may have to be cautious. This is our key trading logic.
All in all, in this system, all the orders are placed manually, but it is far beyond manual judgement only.
Thanks so much for reading our article. Market Technician was published since 1968, for now only has 90 volumes. It's one of the most professional Forex Journals around the world, we must fully cherish the opportunity to well express our core views in the 2000 words' article.
In addition, There are some general and important limitations for most EAs: 1. EA is based on a combination of Indicators. 2. Indicators are based on price and volume. 3. MT4 Price is from Liquidity provider, not accurate. If you set up the same indicator in the same pair but in different Brokers & CQG & eSignal charting system, the result may not the same, especially on lower timeframes. 4. Volume is from broker server and/or Liquidity Provider, in most cases, retail traders' volume is on the opposite of professional traders. 5. No reliable historical data for backtesting. I think even the best MT4 Tickdata is hard to 100% simulate the real trading conditions. 6. Too much over-optimization. This is a key issue for most EAs, cause their key logic could not work well, programmers have to adjust the parameters of the indicators to suit the historical data, which lead to excellent backtesting result and distorted performance in live trading.
Trading is much more than an EA. How to combine the technical and fundamental views together is the key to success.
If EA is as powerful as imagined, I think perhaps some major banks, such as Goldman Sacks, CreditSuisse, Commerzbank, would lay off all the technical analysts and economists and focused on EA coding only :)
However, MT4/5 is the most popular retail trading platform. We believe it is one of the best trading platform. Although we do not use it for major investment, it does very conveniently to trading.
The market is tricky around FOMC, being active traders, we must concentrate on the market firstly and apologize a lot for the delay.
1. Fundamental analysis based more on Economics knowledge. We have a key rule: 'Never try to directly trade against Central Banks'. From this perspective, you could try to read and analyze the Economic data. In addition, Fundamental views and/or models from some Major Banks are good references to us, such as Goldman Sachs, CreditSuisse, CommerzBank, Citi, BNP Paribas... Every trading day, we read and absorb as much as we can. However, we could not directly copy their views. We must think independently to get a basic view, if our views are supported by some major banks, then it may be a highly convinced idea; if not, we'll re-check it and perhaps further observation and consideration are needed.
Therefore, Fundamental analysis is completely different from guess work :)
2. We noticed there is a lot of signal providers' site shut down and numerous online coach site are more and more active during the past 5-6 years. Perhaps the reason is quite simple: 'coaches' do not need a 3rd party verified trading performance.
If you still want to follow a coach, we suggest you ask him two questions before making the payment: ①If what you taught is very useful and/or your trading system is quite profitable, why do you abandon trading yourself and spend so much time teaching other traders? ②Do you have 3rd party verified live account, even $100 balance, which could verify your trading logic?
Based on his answer, you could make further judgment.
3. However, in case you do want to learn something to prepare for the next stage in your financial career, we highly recommend you to visit the site of 'Society of Technical Analysts'. Their training/learning course is the best in the world. Some great professional traders, such as Karen Jones, Alel Rudolph ( CommerzBank ) are all active members of STA.
The overnight session was a bit of a stroll, with very limited price action leaving markets rangebound ahead of US CPI. The bid bias for USD dissipiated by the end of the Monday session, and our eTrading desk notes that interbank trading volumes were 20% below the 30 day average.
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Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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