Just when we thought that Brexit fundamentals were finally receding to make our technical analysis easier, Coronavirus comes along and makes things twice as bad (at least!). Unfortunately these fundamentals are going to last for many months and will have a more profound effect for possibly years to come. Businesses and economies are going to take a long time to recover, with government debt and QE reaching all time highs to pay for it all.
The saving grace for us traders is we have a reliable strategy that literally never fails to pull in consistent points whatever the market is doing, though we must be aware of any news that may swing the markets (vaccines, cures etc.)
It was nice to get back to a full itinerary of instruments today and the figures didn’t disappoint.
All our GBP instruments were Dom Long and fared well with good points available until some big swings after the US open.
The EUR/AUD started off Dom Short but the euro in itself strengthened during the morning but there were still some good trades available.
The Dax was initially Dom Long but negative German data caused a big selloff leading to the US open. This did not affect our long trades earlier on with massive points available with the increased volatility.
The increased volatility continues to bring in higher than average points, with a maximum potential of 1,665 points from specific Max Day Trading time/price level entries from the London morning session alone, with a target of just 30. To reiterate, I have reflected the increased spreads that we are being charged and all figures quoted are net.
A 10% target of this figure would have yielded a minimum of 166 net points from specific Max Day Trading time/price level entries, with many additional opportunities in the US morning (UK afternoon) and US afternoon (UK evening) sessions.