I have had so many emails asking what a mechanical trading strategy is and how to get it I thought I would reply to everyone on the site as opposed to each person via email.
Firstly, the AUDUSD closed out for a small loss so no big deal. The USDJPY as suggested by one of my mechanical trading strategy made a good profit and those of you trading it as mentioned on Tuesday's post should have made £1000 or £2000 profit at least based on a standard account.
Ok, a mechanical trading strategy some of you thought was a black box system. It is not a black box system and unlike a black box where you do not know the formula behind the strategy, a mechanical trading strategy is one where you input your trading strategy into your software which then alerts you when trades that are within your criteria. This method of trading is far superior to trading based on guess work or news and takes out the emotion. You know your entry point and exit points which are clearly defined so greed, fear or hesitation is not an issue. I have been short the USDJPY for the last two weeks based on my mechanical strategy and again on Tuesday which provided nearly a £2000 profit.
I am not putting any charts up tonight as it is too early and will not update this on Wednesday morning so please consider this Wednesdays post.
I am short the EURUSD (daily chart 0.786 & candle) and still short the USDJPY but have scaled out the latter.
Best of luck and as always, please please do your own analysis.