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Fundaments for currency futures

  #3 (permalink)

Dartmouth NS
Trading Experience: Intermediate
Platform: MC, MC.Net, NT, TWS
Broker/Data: IB / IQFeed / Kids
Favorite Futures: Forex, stocks
bnichols's Avatar
Posts: 638 since Feb 2010
Thanks: 64 given, 460 received

It may be a matter of time frame but after trading currencies relatively short time frame (200-1800 tick) from technicals for a few years now, aside from noting when news is scheduled I no longer pay attention to e.g. the dollar index or any other index or instrument other than the one I'm trading (let alone subscribe to any news service or pay attention to media's interpretation of the state of various economies).

The issue(s) for me were first, fundamentals (as they are reported or inferred from e.g. the dollar index) are correlated until they cease to be correlated--trick is determined which is which--and as you may be suggesting, just like news and economic opinion it introduced an unwarranted bias in my interpretation of price action, and moreover my interpretation often enough seemed the oposite of the currency market's interpretation.

Regarding 2nd opinons in general, while I admit there is some satisfaction in watching indices move in and out of correlation, like learning a news service's explanation after the fact of why a trend is (or was) in place, satisfying my curiosity doesn't help my trading; overall rather than suffer the distraction of something else to watch these days I try to focus soley on what price is doing in order to estimate the probability of what it might do next.

Last edited by bnichols; January 19th, 2013 at 10:10 AM.
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