Forex EA Robot Trading Blog

Aug. 28 (Bloomberg) -- The yen strengthened for a second day against the dollar on speculation banks will report more credit- market losses, prompting traders to pare higher-yielding investments funded by loans in Japan. The currency rose the most against the New Zealand dollar, a favorite for carry trades, after DBS Group Holdings Ltd. said it has more at risk from asset-backed debt than it earlier reported. The yen is the best performer among the 16 most-active currencies this month as U.S. mortgage defaults caused stock markets to drop and banks to curb lending.
``The current environment is one of risk aversion,'' said Mitul Kotecha, head of currency strategy at Calyon in London. ``We are going to see more of a pullback of carry trades.''
The yen advanced to 115.53 per dollar at 7:30 a.m. in New York from 115.86, and is up 2.8 percent in August. Japan's currency also traded at 157.95 per euro, from 158.12 late yesterday, bringing gains to 2.8 percent this month

http://www.bloomberg.com/apps/news?pid=20601101&sid=au6mhUvyOzjc&refer=japan

Labels: yen

A new EA is currently being tested, called the Easypips EA. This will be released in the next couple of weeks as a free trial to all current carrygrid users, and then later released to the general public. This EA will work on any timeframe, and is bi-directional. It uses multiple positions at different take profit levels, and looks to lock in to breakeven quickly. Currently we are optimizing the stop and take profit levels for different pairs and timeframes, and we will be looking for existing users to forward test this and provide feedback. Initial results show Daily to be the best time frame, but it can profitably down to the 1Hr timeframe. More on this soon...

Labels: Easypips EA

Wow what a week last week, the yen strength seeming to drive the global stock market plunges, which perpetuates itself, and the carry traders are bailing out. Selling begets selling. It seems like the long anticipated unwinding has occurred.. the only question is, where is the bottom of all this? I would certainly be waiting for the daily trend to turn up before 'business as usual'.

Yen Set for Best Week Against Dollar Since 1998 on Credit Risk

Aug. 17 (Bloomberg) -- The yen was poised for its biggest weekly gain versus the
dollar and euro in almost nine years as traders dumped investments funded by
loans in Japan.
The yen rose against all currencies this week as turmoil in
credit markets and a global rout in corporate bonds and stocks prompted an
exodus from so-called carry trades. The Japanese currency had its steepest
advance in more than three decades versus the New Zealand dollar, a favorite for
such trades.

http://www.bloomberg.com/apps/news?pid=20601101&refer=japan&sid=arDchnf7ZG88

Labels: carry trade, unwind, yen

A lot of news releases coming through this week, i've rarely seen such a packed schedule. You can expect the volatility to continue this week.

The demo managed accounts are doing really nicely, and we added some results to the site over the weekend, and added an FAQ as well.

Labels: accounts, News

One other service, which is being rolled out to little fanfare, but its worth being aware of, is that we also now offer EA hosting.

We have no idea yet whether anyone might require such a thing, but we can offer it. Basically, you provide the EA to us, and the account details, and we run it for you, 24/6, on a dedicated server.

Its useful if you cant run a computer 24/6 (maybe its a laptop you travel with) , or have internet interruptions power failures, or just want to reclaim your computer. We had to build the infrastructure as part of the managed accounts service, so it makes sense to offer this, as a low cost way to run EA's without all the nannying involved in making sure its always running.

Labels: EA hosting

The last few days ive been busy setting up the managed accounts server to cope with the incoming load, and testing all the required software. Whilst the IB agreement is not in place yet, its really a formality as ive been through this with 2 different brokers now. With my current IB agreement you need a 100k account, which is considerably more than most people want to commit.

We do now have 7 confirmed participants for the initial batch, with a few more interested and the first are having their demo accounts traded right now. Unfortunately as part of the setup process to support multiple accounts, the nice demo i had running has lost its login details, which is annoying as it was on 15% over a 1 week period. Oh well, at least results are reproducible, as the initial clients are now seeing. We are not going to be promoting this wildly, but i do feel obliged to post this information, as all carrygridders have already spent some money with us, and deserve to be aware of the opportunity. Whilst i cannot set up accounts for free (else i am out of pocket), i am willing to offer a discount for existing carry grid purchasers on the demo (normally 25, discounted to 15) and live (normally 75 discounted to 25) account setup fees. Contact me at support@myfxtools.com for more details. When all the slots are taken i will post here. I would like to run the initial group for a month or two before i consider opening it up for a second batch.

Labels: managed accounts

I just updated the statement on the live server, equity is at 65k now. The experiment with pulling in the USD pairs was not a good call, now the long term trend for USD is down. Easy to say with hindsight. It concerns me a little bit about multi-time frame visibility and i start to think about adding higher timeframe confirmations before gridding in. But would this help with drawdown? Im not sure, as at the start of this downtrend all the timeframes were pointing up, and the weekly timeframe is still up. This correction is linked to the DOW, and word is the DOW is still correcting, so it will be interesting to see what effect todays USD news is going to have.. in 45 minutes time.

Labels: DOW, USD

Its NFP in 3.5 hours from now at 1:30 GMT. Its predicted to have a positive effect on the $. But lets see, it has a tendency to not do what its expected to at news time.

Currencies seem to be in a holding pattern at the moment, and the equity on the live account is currently 78k.

Labels: NFP

As i write, the yen and franc are both falling fast and hard. Trichets speech seems to be doing the trick! Lets hope this is the resurgence of the next bull run.

This is one of the best calendars out there http://www.forexfactory.com/calendar.php

Aug. 1 (Bloomberg) -- The yen jumped against the euro and the dollar as
hedge fund losses and a slump in stocks prompted investors to cut investments
paid for by loans in Japan.
Traders pared so-called carry trades, pushing up
the yen versus the 16 most-active currencies. The Australian and New Zealand
dollars, whose high interest rates are a magnet to investors, were among the
biggest decliners against the yen. Asian and European equities also dropped on
speculation of further fund losses tied to U.S. subprime mortgages.

Looks like it might be set to continue further, when it comes down, it comes down hard.

Labels: GBPJPY