A Federal Open Market Committee meeting that is critical has raised expectations for the market volatility in the coming weeks. There will be currency moves that are sharp that will also contain strategies that are breakout for some time to come.
See Breakout Expert Advisor made by dailyfx presentation:
You can buy this Metatrader Expert Advisor at Breakout 2 EA page.
Trading Signals for the DailyFX+ System – You can see that it was a very good week for the Breakout2 trades that are very volatility-friendly. When it comes to what are called “outsized currency moves” it is systems Momentum1 as well as the Momentum2 that had a very solid trading session too. While some of the Range2 currency trades are shown to be good trades, the current environment of very high-volatility is going to make the Momentum and the Breakout strategies of trading the better ones to choose. It is the continuing changes in volatility that tells us to expect more of the same changes coming. On all US Dollar and/or Japanese Yen pair trades you might be wiser to use the Breakout2 trading system for the foreseeable future.
There are many ways to understand how the six different systems of trading work, the least of which is via a video presentation. There is such a video on the “FXCM Digital Expo page” for you to view. The Accuracy Percentage among the six systems ranges from 32 percent (Range2 Medium Term) to 65 percent (Breakout2 Short Term). There is enough evidence that US Federal Open Market Committee has decided it will keep the status as it is for the foreseeable future. This is due to the current and past as well as the foreseeable volatility of the currency markets.
When looking at the different trading systems, you need to know which does better under what conditions. For example, the Breakout2 system has really done much better than even the Channel Breakout that is the benchmark system here over the 7 previous days. It is the Momentum2 has outdone the “Moving Average Crossover”. It is the current trading extremes that are likely to keep the trading strategies DailyFX+ has doing as they have done.
Range Strategy – This trading strategy gives traders what it calculates the movements of the 6 major currency pairs (EURUSD, USDJPY, USDCAD, NZDUSD, GBPUSD and USDCHF) over the next 60 minutes in time. It Sells when the RSI goes under 70 and will Buy when above 30. No other rule applies play here.
Trend Strategy – This system shows traders examples of the simple “Moving Average Crossover” for the next 60 minutes for the 6 major currency pairs. It Buys when the “50-Period Simple Moving Average goes above the 100 and 200-period averages and Sells when it goes below these. No other rule applies here.
Breakout Strategy – This system shows traders examples for the next 60 minutes of trading for the major pairs for the Channel Breakout system. It will execute a Buy order at the highest high plus one PIP of the prior 20 bars and a Sell order at the lowest low minus one PIP of the prior 20 bars. No other rule applies here.
Volatility Percentile – This percentage tells traders the likeliness of upcoming strong up/down price movements; thus lets them know where the trends are likely to go in the future based upon the prior 90 days action. It has been found is that the implied volatilities are likely to remain where they are for a while; so knowing where that level is currently makes a difference.
Trend – This indicator gives traders an idea where current prices stand compared to the past 90 days action. Very low numbers tell us that it is close to monthly lows; very high numbers speak of being near monthly highs while numbers close to 50% are middle ground.
Range High – Closing high 90 days.
Range Low – Closing low 90 days.