Euro

Chart courtesy of Dynamic Traders. Data provided by Reuters Quote Center.

Sorry but I didnt have time for updating yesterday.

Above is the Euro Dollar chart. I have been stopped out on the Euro short I had opened but have noticed the Comms are still short the Euro so will be looking to ro-open a short at sometime in the near future.

The USDCAD pair is range bound. A break above the high and the daily chart and I will look to open a long position again.

Have a good weekend and I will try to update during the weekend but certainly by Monday morning.

Frank has decided to take up a mechanical trading system today so good luck to you.

Mechanical Trading & £2000

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.

USDJPY

Chart courtesy of Metastock. Data provided by Quote Center.

I had an email yesterday asking how my mechanical trading solutions work. Well I can't explain online how my emotion free solutions work as it is not so easy to do with text but I decided to show one of them and this is actually the easiest one.

The above chart is the USDJPY daily chart and based on this strategy I have been short for nearly two weeks.

The best way to trade is use mechanical trading which will be the main way to cut out the greed and fear element from your trading.

I am short the USDJPY and AUDUSD (with a tight stop).

Good luck today.

AUDUSD

Chart courtesy of Advanced Get. Data provided by ESignal.

Above is the AudUSD cross. We are still below the resistance and the sell the rallies is the likely strategy but look for a good entry for short. Possible fib cluster with PP.

Good luck.