Cable Ambush Trading

I trade Cable (GBP/USD) exclusively. Cable is arguably one of the more difficult markets to trade, but after few years of R&D I would like to think that I understand its behaviour, so I trade it.

I call my strategy Cable Ambush, as I look for market inefficiency and typically take a contrarian view. I use economic news and Pivots. I place my orders in the evening after the London market close and I wait for them to be executed overnight and/or the next trading day. Typically I take 1-5 trades per week.

I will be posting my performance updates weekly, typically on Saturday, as during the week I don't have the time.

Cheers, Kris

2011 Statistics:
* Opening balance: $12,588.58
* Profit/(Loss): $7,603.90
* Equity growth: 60.4%
* Closing balance: $20,192.48

The volatility is increasing, reflecting market uncertainty. Last week we made a good profit [$411], but next week we will be reducing our position sizing to mitigate risk of getting caught on the wrong side of the market. See below our trading chart with the Pivots indicator and our Equity Curve.

We had a modest week, with a profit of $277, but we are very pleased with our overall performance, 43.7% growth, year to date.
Below please find a chart showing our last week's trading activity; at the bottom of the chart see out account balance and the equity curve.

We had great market moves this week, but we made only $122, as we were concerned about the market risk and we traded with smaller positions.

Last week we made $297, but what is more important we are 47.1% up YTD, i.e., we overtook our 2010 (full-year's) performance already in August. See our performance year to date.

Only one trade this week, with a profit of $57. Well, we don't have anything to brag about, but we are in a sideways market.

Testing our new strategy we almost got our teeth kicked-in, but we recovered with a profit of $456.50. We are 50.88% up for the year and we are going into cash-preservation mode.

Marginal profit this week, only $137.50, but year to date we are strong like a buffalo :-)

Last week Cable was stuck in a range between PP and R1. We took a long trade and when the market hit R1 we closed with a profit of $476.50.

We are closing our trading shop for holidays. With all the Euro polit-buro drama unfolding, it is probably better to stay away from the markets and finalise our strategy for 2012.
Anyway, last week we took three tiny trades and we made $135.50 profit. However, we are closing the year with 58.99% equity growth, which is very good performance in these volatile markets.

Kris have taught me the Cable Ambush strategy, and I must be honest it has saved my account at least a couple of times. The trading strategy shows you what you risk and money management positions must be and what is your probable profit even before the trade is executed that way you know when and where to get in as well as when to get out.

Kris thanks 2011 have been a good trading year for me and thanks for your friendship and mentorship

Kooskamo

Thanks Bud!
Last week we made only $114.50, but in these thin markets, trading conditions are very unpredictable and we are managing our risk to absolute minimum.

We have closed our last trade for 2011 and we have finished with an overall equity growth of 60.4% for the year!
This is outstanding, but the near-straight line equity curve is probably even more impressive than the actual growth. See below the equity curve for the entire 2011, represented by a green histogram below the price chart.

We just completed second trading week in 2012. Our new strategy is working well. We are making small incremental profits as we hit the major resistance (H) and support (L) levels. We are 1.8% up in the first two weeks, lets see what the rest of the year brings us!

Mmmm interesting I am sitting in a Cable Ambush position since 30 Aug 11. Must say the interest that I earn is good. Fact is that with the CA strategy I can from next week start edging out of the trade by utilisation the parameter of the CA strategy. It is going to take a while building the cash up to close some of the open positions but still that would be without a loss

Cot Charts: Futures
Usd
Great Strength
Euro
Great Weakness
Jpy
Strength- Looks Like It Might Be Topping Out
Chf
Weakness
Pound
Weakness
Aud
No Clear Direction
Cad
Weakness


S&P 500
Weakness
DJ Com Index
Mixed Signs- Signs Of Weakness
Oil –
Mixed Signs- Signs Of Weakness
Copper – Mixed
Mixed Signs- Signs Of Strength
2 yrs T-Bill
Strength
10 yrs T-Bill
Great Strength


Correlation of Markets may be breaking down. But if it remains.
It’s hard to see how the Stock Markets can rise much more.
We will then return to a risk off on the market.
We will continue to have a flight to safety- and liquidity.

Last week Cable ran all the way to H5 level, but unfortunately we took profit at H3. However, in the current economical situation it was prudent thing to do. For all we know, this could have been a stop-run.
Anyway, cash in the bank is better than theoretical profit. So we walk away with $57.20 for the week, better luck next week.

What type of system do you use now. Where does this H2 H3 levels come from??? Did you stop using floorpivots????

Camarilla Pivots?

We had a slow start to 2012 and in January we made only $480 or 2.4% equity growth.
With all the uncertainty with the EU and the banks, capital preservation has to be the priority and as a result we missed some good opportunities.