I suppose that the 1.1175 level will be reached next week, but I'm not completely sure whether the whole week will be "black" or not. No positions next week.
Thank you, The Pearl Fisher.
a_gnome, I use both mechanical and non-mechanical techniques in my trading. Nevertheless, this trade was purely mechanical. You can find the system's past results in the attachment. (USDCAD-Daily, $1 gained = 1pip)
I use the 2:1 leverage. It's sufficient to keep average weekly risk well below the 5% level, and enough to make 70-90 percent a year with this strategy.
The pair was sold at 1.1358
A lot of information about spot fx correlations: current values, time dependences(in graphical and numerical form).
http://www.understandmarket.com/index.php?categoryid=55
Agree with Atilla, balance of payments and interest rates do determine exchange rates and correlations between currency pairs. Remember, for example, when the rates in US, Europe and Japan were low, there were practically no difference what pair to trade (EURUSD or USDJPY) - they were highly...
Let me disagree with you, pssonice. Just some facts:
1. One of our methods allows us to estimate the probability for the price to reach
> the 1.2540 level within 4 trading days as 25%;
> the 1.2700 level within 4 trading days as 68%;
2. The possible profit / possible loss ratio is 94/66=1.42...
Our position was closed yesterday at 1.8750. Nevertheless, the Pound is still having potential to grow. The 1.89 level is supposed to be reached shortly.