The focus for risk isn’t the U.S. dollar (USD/JPY) (though JPY grabs the headlines) but euro/J...
Trading Currencies: An International Group for an International Market
08/16/2017 3:01 am EST
CBOT veteran Jeff Wecker describes how independent currency traders meet from all over the world on Skype to talk strategies, trades and local economic and political news from their country.
It only made sense to us. If you are going to trade an international market, why not put together a group of international traders, dealers and bankers, open to anyone interested in the world of currency trading?
So that’s what we did. It's called “Currencies, Coffee and Croissants” (CCC). We recruited some of the top independent currency traders in the world, from eight different countries…..the U.S., Canada, Great Britain, United Arab Emirates (Dubai), India, Australia, New Zealand and Japan.
And what do we do? Well, we meet on Skype 24/7. Members drop in when their schedules permit, read what other members have to say and leave their comments. Discussions include trading strategies, reviews of particular trades, and discussions about local economic and political conditions in each member’s country; all valuable and timely information….as Warren Buffet reminds us…charts and algorithms are nice but information is where the real money is.
The group is also a bastion of free and useful education. Recently a member expressed an interest in learning about Point and Figure charting; another member volunteered to put on a free seminar about the technique. Similar free seminars and discussions take place in techniques ranging from Elliott Wave to Gann Angles, and to the Ichimoku Cloud, ad infinitum.
Another interesting and useful project was for the group to put together its own robot, aptly named “Forex Forager.” What members wanted wasn’t easy but the group included some software engineers and developers who were able to create it. It is designed to find swing and long term trades with a maximum of 15 pips of risk and a potential of 300-700 pips profit, a nice risk reward ratio. The robot also is a money manager, taking partial profits automatically as it goes, putting members in the position of always playing with the market’s money. Members love “Forex Forager” because they can go to sleep or out to the golf course and know they won’t miss anything.
Another nice part of the group is that because they are all in different time zones, there are always members on Skype to discuss a trade with or let you know what’s going on in different parts of the world. For example, before you put on a trade in the Canadian dollar, don’t you want to talk to a trader at the RBC as well as an oil trader in the mid east? Before you put on a trade in the Australian dollar, don’t you want to know the state of the processing and mineral refining business? In other words, everyone knows what MACD is, but what everyone knows is generally not worth knowing.
Technical analysis is useful, but when supplemented by fundamentals, it becomes a powerful, money making tool.
One final thing the group does is to go through each currency pair every day from both a technical and fundamental viewpoint. When three or four different calculations come to the same price point (including the Robot “Forex Forager”), members receive a text regarding a trade for that pair.
As a former member of the Chicago Board of Trade, and moderator of the group, I’m very excited about the future of CCC, now in its fourth year.
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