AUDUSD - Trading Strategy

[Music Man]

Today I tried to trade the RBA rates decision. As in the NFP thread, I straddled, taking care not to allow my stops to execute prematurely. It's a good thing, too, because the market was convinced there would be a hike. I had to push up the buy stop price a few times to avoid buying pre-news. That would have been very bad indeed.

When the news did come, the price dropped almost instantly. Unlike the EURUSD play in NFP, this time the stop did not execute until the initial spike was done. Bummer. I still managed 10 pips or so, but it was not what I was looking for. Still, a win is a win, so there you go.

FWIW, Sean over on ForexLive.com called it. If I had gone short with him, it would have been much better. Unless he had been wrong.

MM

 

[Ricex]

I wasn't convinced either as I said on my blog on Sunday. I think they did the right thing though for Australia and we can probably look forward to a hike in March. This event gets released at 4.30am my time so no chance of a live trade for me.
I took a short off the WP with a 20 pip SL and a 100 pip TP, then went to bed. A bit of luck goes a long way sometimes.

Yeah MM those straddle trades need shepherding, I would have been caught out had I done that.

 

[cowmadagan]

I got spanked on gold Monday, and was hedged on short AUD. That (and others) helped me get almost 2/3 back on Tuesday.

Honestly, this time NZ gave their economic current situation before Australia, and that was the hint in 20/20 hindsight.

Now, I never, ever, ever straddle, but that's because it's breakout trading. I was consistently attempting to profit from breakout trading (especially when trying to find 'today's' trend rather than the daily trend) and it feels like three steps forward, two steps back, at best.

If you don't have the time to watch and manually enter, I guess I can understand, but I think that if you back test breakout trading you'll find like I did when I had cash on the line that breakouts are usually fakeouts that don't pay for the good calls. You could say that I'm not hitting the entries at the right time, but I find channel or range trading gives a much clearer target for stops and take profits.

 

[ernest8fingers]

i missed it by 60 seconds

I missed the AUD news release yesterday by 60 friggin seconds(it took 1/10 that time for the AUD/USD to dive more than 100pips!) I was short earlier in the day and lost a few pips by exiting the trade before the release. I fear the NEWS! So I lost a few and then to add insult to injury exited what would have been a glorious win! It wasnt the 1st time either! I made up my loss and then some today but nowhere near what I missed out on. I was long this pair in the morning after the NY open and exited in the .8960 range a few hours ago. Will go short shortly.