Immunization open position


1. Of the two open positions on the spot market for a FOREX currency equal amounts in opposite directions close unprofitable first, and only then be possible to reduce or close a profitable position.

2. Active management is carried out only with losing positions, profitable position preferably not touched for the lifetime of the trend.

3. One account position is opened on the basis of «trend following» for a long time base (for example, daily) for another account on a smaller scale of time (60 minutes or less) caught reversal signal, and then open a position on the principle of «reversal patterns». So it turns out that a trader simultaneously adheres to the tactics of the two opposing principles: trade with the trend on a deep investment horizon and from time to time trades against the trend to smaller investment horizons.

4. Priority in the signals of technical indicators should be as follows: the signal of the trend seen and traded, the first signal arising against the trend is ignored, if it is confirmed by another signal (formed a kind of topping signals the cluster), then these signals are perceived as a guide to action.

5. Losing position against the trend should be closed when the first signals for the continuation of the trend.

The main disadvantages of the proposed method of immunization can be summarized as follows:

- With one-stage entry to the market trader immediately "gets" on a double spread;

- The total position is usually negative during flat market;

- Relatively low wages;

- On each sub-account must have "safety cushion" of up to 70% of the deposit in order to avoid margin call on one of the accounts.

Attempts to eliminate or at least minimize these disadvantages of the two sub-accounts have led to a qualitatively different way of immunization open positions in the market FOREX. Consider the evolution of the principles of evolution stages of immunization principles of open positions in the market FOREX. The first thing that had to start work to improve technique of trading on the two sub-accounts - if possible, eliminate the negative effect of a double spread. Achieve this is quite simple. Necessary to enter the market by snaring trend on the daily scan done on a 3 or even a 2-minute time interval and confirm the presence of this sign in the relevant news in the economic calendar, the current in the direction of the daily trend of the selected asset. This jewelry on-time entry into the market makes it more likely (at least 92%) in the next 10-15 minutes to work out, "spredovye" points and often get even arrived. Followed by a regular routine work, described in a previous paper [1].

Eliminating the impact of flat market in the market selected asset quality of our trade has been more challenging. The current statistics show [2] that no more than 30% of the time the market has a trend, and the remaining 70% - flat. In order to avoid flat market traders often start to "jump" into smaller investment horizons, trying as much as possible to diagnose the birth trend. If the search is a trend in both sub-accounts, as a rule, such a tactic auction ends in failure. It is best in these times to be out of the market. One problem remains, in fact, determines the following - a relatively low wages. Indeed, in addition to the problem of infrequent entry into the market, there is one negative point: one of the two sub-accounts is almost always at a disadvantage that requires frequent cancellation of a positive account of the funds to support the trade. Besides the need to fix "safety cushion" of 70% of the deposit means that two-thirds of your funds do not work - they just lie in the account in case of different crisis situations.