Trade Alert: This morning I woke up to an email from the friendly folks at ThinkOrSwim telling me that I was filled on a USD/JPY (Yen) trade while I was asleep. Because Forex is a 24 hour market, I leave good till cancelled orders in for my positions when currency pairs are near the Donchian […]
Ranking Recap: We’re about 2/3 of the way through November and it seems like a good time to check in on the rankings for the Top Performing ETF’s Monthly Rotation System. On November 1st I initiated a position in FAN (First Trust Global Wind Energy ETF), the then #2 ranking ETF and the only ETF in […]
Background on the trade: This trade is part of the Donchian Channel breakout system I trade. From late last year and into this year the Yen was extremely weak and my Donchian system captured a huge part of that move. After that trade ended, the Yen has been trading in an ever tightening range. I […]
Overview: Aside from the weak Japanese Yen, trends in major currencies this year have been fairly short lived. Short and choppy trends are one of the reasons to supplement an outright trend following trading system with options, but that’s not really what this post is about. Last week I had two Donchian breakout trades get […]
One of the main tenets of trend following is that you should use numerous, uncorrelated underlyings for diversification and to increase the returns in your system. Using additional trend following systems and non-trend following systems is an extension of that idea. The credit spread trading I generally discuss came about as a way to diversify the Donchian […]