USD longs: P&L and max drawdown YTD
Updated
Let's take a look at the most interesting USD long ideas. I favor the following pairs:
These have strong trends, and fundamental reasons to continue trending higher and steadily. We can take trades in the basket I present here, but we don't need constant exposure to all the pairs. Being selective with the FX positions, and the combined size will be vital to achieve profitability in the long run. If you're trading the same idea, with the same sizes, technical entries, and stops, you're basically multiplying your risk.
I have come to determine that a swing trading and position trading strategy is more suitable with my personality, and also, a good way of riding trends without having big risks initially, but, on the contrary, increasing exposure gradually while the trades prove us right.
Right now, we see that USDMXN, USDGBP and USDTRY are the most volatile, and the ones with the biggest advance YTD, with more than 20% progress. USDJPY and USDNOK are down for the year, but had a massive recovery after the presidential elections in the US. In fact, on a time vs price basis, USDMXN, USDGBP and USDJPY sport the sharpest advances in all of these pairs. So, I'd say that the trend is bullish without a doubt, despite being in the red on some pairs, for the year.
We can also observe the type of consolidations and volatility, to determine which pairs we want to approach in which way, this will be critical in ensuring your chosen trading strategy is suitable for trading each pair, or when to favor a specific trading style, on which pair, and when to simply stay put until conditions are favorable. This type of observation will be vital for FX traders. It also puts thing in perspective, and is the type of analysis that some instutions or hedge funds might do, when looking at assets, performance, volatility, drawdown YTD, on a monthly, quarterly, weekly, daily basis, etc.
We can see that, the top dogs are: USDMXN and USDGBP, on a p&l YTD and max drawdown basis, with 20.59% and 20.03% advance, and a small drawdown of less than 1% and 1.85% respectively.
So, we might see that these pairs see a continuation of the advance going into year end.
Hope you find this helpful, if you have questions or comments leave them below.
Cheers,
Ivan Labrie.
- USDMXN
- USDNOK
- USDSEK
- USDEUR
- USDGBP
- USDCNH
- USDJPY
- USDTRY
These have strong trends, and fundamental reasons to continue trending higher and steadily. We can take trades in the basket I present here, but we don't need constant exposure to all the pairs. Being selective with the FX positions, and the combined size will be vital to achieve profitability in the long run. If you're trading the same idea, with the same sizes, technical entries, and stops, you're basically multiplying your risk.
I have come to determine that a swing trading and position trading strategy is more suitable with my personality, and also, a good way of riding trends without having big risks initially, but, on the contrary, increasing exposure gradually while the trades prove us right.
Right now, we see that USDMXN, USDGBP and USDTRY are the most volatile, and the ones with the biggest advance YTD, with more than 20% progress. USDJPY and USDNOK are down for the year, but had a massive recovery after the presidential elections in the US. In fact, on a time vs price basis, USDMXN, USDGBP and USDJPY sport the sharpest advances in all of these pairs. So, I'd say that the trend is bullish without a doubt, despite being in the red on some pairs, for the year.
We can also observe the type of consolidations and volatility, to determine which pairs we want to approach in which way, this will be critical in ensuring your chosen trading strategy is suitable for trading each pair, or when to favor a specific trading style, on which pair, and when to simply stay put until conditions are favorable. This type of observation will be vital for FX traders. It also puts thing in perspective, and is the type of analysis that some instutions or hedge funds might do, when looking at assets, performance, volatility, drawdown YTD, on a monthly, quarterly, weekly, daily basis, etc.
We can see that, the top dogs are: USDMXN and USDGBP, on a p&l YTD and max drawdown basis, with 20.59% and 20.03% advance, and a small drawdown of less than 1% and 1.85% respectively.
So, we might see that these pairs see a continuation of the advance going into year end.
Hope you find this helpful, if you have questions or comments leave them below.
Cheers,
Ivan Labrie.
Note
Monitoring these to reenter longs, need to wait for bearish momentum to end.Note
Very important chart...see how MXN and TRY acted. These are extremely weak currencies, and thus, interesting ones to fade against USD.Note
See previous update...relative strength is king,
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