China

So China is rattling their swords again about a new world currency. Nothing to see here folks, move along. Fortunately for the USA the Chinese government has a tremendous amount of US dollars in reserve and a huge amount of our debt. Do you really think that they are going to let the buck become the peso. Nope, will not happen. China needs a decently priced dollar or they will be holding a ton of useless debt.

Nothing more to see!

The Dollar

It's amazing actually the beating the dollar has been taking. Funny thing happening, the dollar is getting beat down by currencies that are fundamentally not much better off. 2008 should be an interesting year.

Rolling right along

Ok, new day and one new trade. For reference there will be days with many trades, days with a few trades, and days with no trades. The key is to stay disciplined. When there are no trades, I can't go hunting for one. This has always been my Achilles heal. I want to trade, I need the fix. I would have a great week going and then make a trade that really didn't fit the profile. We all know what happened next. Bad trade, let the losses run trying to get back to even, positive week turns negative, blahhh. We have all been there. I have changed my ways, no more I say! Follow The Grail (hope this name isn't already taken, I kind of like it). The Grail will show me the way. So on to the trades. First updates on the open trades:

USD/CAD-Still in the red, have moved s/l to 1.1900. I believe there may be a short lived spike towards 1.1870 before a nice retracement. Definitely do not want to make a habit of moving s/l on trades in the red, but after scrutinizing the charts I believe this is warranted.

EUR/USD-Closed 1 lot @ 130.10 (+30 pips) and moved s/l to 129.90 (trailing) locking in +10 pips. Have lowered target to 130.40. I was concerned about this trade but it has turned out very nice.

New trade today: EUR/JPY long @ 156.98 s/l-156.20 tgt point 158.25. Will close 1 lot and move s/l 157.10 upon break of 157.50.

Don't forget about the BOE Interest Rate Statement upcoming. It could be a wild ride, although I would be very surprised if they hike again this soon.

Testing

The weekend was very beneficial to my long term forex career. I have done extensive back-testing on a couple of pairs. I have found that so far the new system looks very good. I will continue to back-test a few other pairs. I hope to have 5-7 pairs that I can reliably trade with this new system. Once completed I will post trades and results strictly from this system. As I mentioned earlier, the system is a hybrid of a few different systems. I am looking for the holy grail so to speak, and I may have created it. We will find out.

Trading this week will likely be slow. I am putting most of my efforts into back-testing the new system. Today I closed out the EUR/GBP short of my target point. Closed @ .6609 for a profit of 21 pips, which is a decent haul on this pair. Have initiated one order tonight: USD/CHF long@ 125.22 s/l@125.02, no target point yet, want to see how this plays out. I may short USD/CAD if it gets near the 118.50 range. Patience on this cross. Happy pips to all!