7th day, huge profit

After almost recovering the losses from previous days, I had a lot of energy and I wanted to switch on the system as soon as possible. To be honest, this doesn’t matter. When I was designing the system, I decided to set up a time window to be able to control the algo and make sure that the positions were closed before the end of the day.

6E 06/20 breaking moment

I was expecting that the Fed approval of its new loan program and I knew that it will have a big impact in the markets that the algo trades.

Early in the morning, the USD was stronger than the Euro and the British Pound. The algo was triggered in both crosses almost at the same time while the futures were retracing.  Let see how these currency futures behaved during the day:

Euro FX

As I said before, the algo was triggered just after 11:30 London Time. I was a bit surprised but all of the conditions were met and the algo sent the market order. After that, I was monitoring the pile of red candles until 12:45. At that point, the market started recovering. Considering the news, I hoped that the market would break the highs of the day.

6E 06/20 trade chart

At the beginning of the US trading session, the news started coming up.  The FED approved the new loan to help to bolster local governments and small and mid-sized businesses. Obviously, all central banks and governments are trying to help their economies as much as they can. I believe that some of the measures will be highly effective while other ones will only help to increase the debts of the countries. At the same time, the initial jobless claims data was released. It was far worse than expected. The Euro rocketed from 1.0900 to 1.0960. After this moment, the market stayed ranging between 1.0940 and 1.0960 for four hours.

British Pound

6B 06/20 trade chart

The case of the British Pound was exactly the same but the daily range was lower than in the Euro. As you can see the retracement was bigger in the GBP/USD at least until 17:30 where it rebounded aggressively.

Trades and Account

It was a great day in terms of profit. The algo generated $3220 in the Euro and $688.75 in the British Pound.

Realized profit by the algo applied to EuroFx and British Pound Futures

It was the first day with a positive P/L and it was a boost to my confidence.

Account

Summary

When you have an algorithmic or even a simple trading strategy is difficult to deal with the news and the macroeconomic data releases. In the example shown, the market when in the direction of the algo but you should be aware that sometimes it will go against you. I would like to recommend to always use stop losses.