Average daily trading strategy on the EURJPY pair

Average daily trading strategy on the EURJPY pair

The average daily trading strategy consists in the special steps before the settlement, these steps are the analysis, the special goals setting, the placing of orders, and settlement of transaction. The feature of such strategy is that the deal depends on the carried out analysis, and after bargaining there is no need to be in front of the terminal and follow the minimal price fluctuations.

This very positively reflects the trader’s health, the Forex market is liquid and high-yield, but at well-being of one, another is in minus, in this way the risk of the capital loss is very high. The average daily trading saves from the excess experiences. The existing period of the opened positions is from one to several days, and sometimes there are special cases of longevity, when the deal takes several weeks. Very often such thing happens on the pairs with low volatility.

The very convenient tool for the average daily trading strategy is the EUR/JPY pair. The pipe-line for the deal, its settlement and time of waiting are very engrossing. Before making a deal on the EUR/JPY pair it is necessary to analyze the market (the interfacing tools on the euro and the yen), in order not to mistake with character. The course falling during several days does not mean that the market takes form of bearish, because the reason for reduction can be correction or the entering of the large investor, the deals values of which move the price. As a rule, the purchase/sale of the currency in large values takes not one operation, but by options, this creates the deceptive mood for which a lot of traders join, generally pipsers. The examples of such deals can be observed very often, only at August 2008, on the EUR/JPY pair there were about 4 situations.

Of course, for those who work during the day, they have become an excellent opportunity, but for the average daily trading it was a false signal, the changes were about 150-200 points, that is quite enough for the stop-loss response on this pair. The average positions, which should be chosen on this tool, are the following: the value of a deal should not overcome 20-30% of the deposit, at that the orders should be set in the area of 100 points, if you are ready to lose 20-30% of your deposit or less. For the EUR/JPY pair 100 points is a good size, though a lot of traders prefer to limit their losses at 50 points, and to be satisfied with the profit of 15-20 pips.

In this case for June-August 2008 the losses have exceeded the profit. The changes of the bullish market for June were 600 points; the corridor of July was about 200 points, with the breaches in both sides, and August difference was 800 points. That is why taking into account the trend, the stop order should be set at 80-100 points, and the profit no less than 50 points, at the positive forecasts it can be more.

Before to make a deal determine the direction of the market, listen the forecasts of the analysts for the next time, if it is possible determine the cause of the price change, it can be economically sound, for example the limitation/increase of the import/export part, for stabilization of economic indices. If in the expected period of a deal, there should not be any events, for example reports or statements, then you can make a deal, in this case the suddenness can be only force-majeure circumstances.


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