Immunization open position

So, we both positions open, and after the completion of the third wave in the second sub-account to sell another 0.5 million USD / JPY at the price of 127.85. Now, our position is again 100% immunized.

Overall balance

The subsequent evolution of the market is shown in the right panel (scale - 60 minutes). The overall market is flat. In the Japanese session on the night of 12/16/01 to 12/17/01 was an attempt to push the market up, but that was the end neither Europe nor America subsequently supported this effort. Technical indicators showed that a 60-minute complete the formation of the third Elliott wave and has been a correction (4th wave) to the purpose of 126.75-126.00. The coefficient of PTI = 89 (likelihood of the rally), its large numerical value can not currently bearish speculators. Besides the signals of moving averages curves uninformative, and oscillators - contradictory. Given that integral to a gain of two sub-accounts, both positions were closed on the first run - at 127.70, the second - 127.75. The final balance at the close with the following:

1 sub $ 1 million x (127.70-126.20) 127.70 = + $ 11746;

2 sub [$ 1 million x (126.30-126.62) + $ 0.5 million x (127.30-127.75) + $ 0.5 million x (127.85-127.75)] = 127.70 - $ 3876;

overall balance + $ 11,746 - $ 3876 $ 7870 + ==.

Thus, the example of real trading on the two sub-accounts showed the effectiveness of immunization open position on the trend with the opposite position open against the trend on the basis of topping signals. The method works on two sub-accounts is not the most optimal trading tactics for aggressive traders, and its further improvement leads again to work on the same account, but with a new quality. For example, more promising immunize open spot position opposite position in the futures market (while pursuing policies effective aggregation in the market FOREX). For traders with a small deposit to open two accounts can be a luxury. In this case, we can recommend to form a synthetic currency [2] and immunize a position opposite to the opening position for the same, but the real currency. But this - the theme of subsequent publications.

The construction of graphs was used technical analysis package of CQG, Inc., For which the author expresses her gratitude.

Part 2

In a previous article, the easiest way was shown immunization open positions in the market FOREX - work on two sub-accounts. However, a much larger revenue opportunities with a slight increase of risk provides immunization FOREX spot market with currency futures. About it - in the next article by Yakimkin.

One currency - two positions

A detailed investigation of the possibilities of trading in one currency in opposite directions on the two sub-accounts as a whole gives a positive result. [1] It is achieved by the choice of the optimal trading strategy and strict discipline of trading, which are based on a number of regulations requiring strict compliance (including, as we shall see below for a trade, and the currency futures market):