The NFP Floodgates 11/2/2012
NFP opened the floodgates for trading today which the institutional interest mostly computer driven across the board made my jobs super easy today :) It was like shooting ducks in a barrel and should have likely taken a few more trades that I know were ITM for certain, but no need to be greedy, best to be cautiously steady. The previous day was nothing to write about as it was a back and forth morning but then I hit a winning streak from the afternoon session to fridays afternoon session that lasted a full 12 trades. Now sometimes you look at the stats and you are like man little growth in the equity curve then you hit a streak and your product is expanded greatly, IE your equity curve rises sharply fast. Those are the times you live for and wait for patiently in trading to occur, because if you have a disciplined consistent approach they are just waiting to happen for you giving you the upper edge when times are good :)
First trade of the day I like to call the Soda PoP. As the modeling showed a likelihood of a SHARP rise very fast when it was to move. It did get that move but range wise it was limited and waited till the last minute to go for me. Still Binary Options wise it was a perfect trade right to 6;50 expiry ending on the high ticks.
Another really nice signal and price flow which I started to use the full 5% of my margine @ this point as it seems the days action to start felt good. This trade dropped in no more then a few second right after entry and was perfect in the sense the 10sec 1min were in perfect harmonious sync which often leads to a quick move. Sure enough the drop was swift and without much recursion of price from entry.
The NFP movements were all clicking across the board, these are times when I go full out max leverage when all my charts are in harmonious sync and you can see ever trade time just hit almost perfectly. My guess is the pool of activity balance/counter balance from all parties interact in such a way that my financial modeling is almost just well, perfect. As you can see in this trade like the second one right from go a drop right into 8:30 expiry.
I think this trade binary wise I did not take, have not even looked at my trade history today since it was just so perfect no reflection needed I felt but one of these two trades I passed on the binary side and think it was this one as it was counter trend. My modeling stated lower numbers were more likely rest of the day so did not want the extra %s vs me. Still as we see on this one the expected move from 8:45 to 8:56 was well once again, perfect.
FTSE 100 sell signal, my favorite trade of the day. One might look at this trade and say well nothing remarkable compared to others but ALGO wise this was the highest probability and best price flow to price/time as it acted as exactly expected to the tick. Many variables you can’t see on a chart that I can see equation wise within excel that are not always visually represented. This was my favorite in short I will leave it at that lol :)
After passing on the first buy signal on the EU bin wise, I believe I took this next one with no hesitation. Hitting a very fast window of the counter trend from 10:04 to 10:16 which I think the exact time of the entry was about 7 after. The trade went right away again, it did have more recursive properties still the majority of the ticks ended to the highside and was a clear and decisive ITM by expiry.
My least favorite trade of the day and yet one would think wow that was the best one! Not so as I was taking a higher amount of risk on the entry only because other associated pairs were so far out of whack in opposition to this up move on GU that it made it higher probability for me. Now the reason I believe this was such a good trade is because the institutional computers captured the arbitrage opportunity and once the momentum ran out on GU it was a nose dive opportunity that would allow them to keep selling within that time box and further alignment to the EU. Likely they were buying the EU while selling the GU in the given time span to hedge the imbalance is my theory. A quick and dirty ITM for me imo :) All in all 7 wins and 1 loss for the day that had my win streak from thursday afternoon conclude @ 12 wins. I nice streak. I have decided to do the “Healthy Habits for Day Traders” and “Money Management Techniques for Binary Options” as separate articles that I will work on in detail over the weekend until I am happy with the finished work. Until next time, Enjoy!