Saturday, December 8, 2007

Swing Mean Reversion


Today demonstrated the power of the swing trade with this system.

I got stuck in a long trade on Bonds coming in to NFP and got blindsided. A real wakeup call lost a whole point on FGBL.

It caused me to consider taking a step back and consider maybe I am looking too closely at the market. Forgot there is a forest in those trees.

I'm going to post all the trades I can find on the 30 minute chart for the Bund. So far it looks like a very smooth trader, but of course holding overnight is required occasionally. Perhaps a way to circumvent the dollar risk (or in this case euro) is to buy the options to hold for the overnight.

There was a long signal an hour before the Bund closing. Let's see how it plays out.

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