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.

6th day, no gain no loss…

As you can imagine after reading the title, it was a flat day. Actually, I made a small profit but it didn’t cover the commissions. Let’s see what happened during that day in the EUR/USD and GBP/USD futures:

British Pound

It was a directional day for the British Pound without any big spike or swings as we saw in the previous days.  This was explained by the increase of COVID-19 cases in the US and the expected approval of further help by the FED.

6B 06/20 

It raised almost without stopping until 14:30 where the price was ranging between 1.2387 and 1.2405. In one of these retracements, the algo was triggered and it sent a buy of 5 lots. I wasn’t sure about opening the position considering its morning trend and range. One of the best aspects of using algos is that we remove discretionary decisions and feelings. After entering in the position, like the most part of the times, the GBP/USD futures fell to 1.2374. After that, it rebounded breaking the highs of the day and it reached the 1.2429 level. It couldn’t breach these levels and it went back to 1.2400 where the algo closed the position.

6B 06/20 trade chart

This chart shows more detailed of what I explained in the previous paragraph.

6B 06/20 trade

In contrast with other days, the MAE ($437.50) is around 1/3 of the MFE ($1281.25) and this shows how well the market behaved for the algo I’m using. One of the problems is that the ETD is still high because the algo is not closing with a signal. Until now, the algo has closed according to the time configured.

Euro FX

The Euro vs the US Dollar didn’t have a clear trend. It was a total swing. It seems that the EUR was stronger in the morning while the USD took its place in the afternoon.

6E 06/20

As you can see, and as it was expected, the algo was triggered in a retracement. It performed well during the first hour. After that, the Euro dropped strongly but seems that the traders didn’t believe in this movement and the buying pressure took the price to the point in which the position was open. At this point, it continued to rise to 1.0909 where the dollar strength came back. The position was closed at 17:08 London Time

Trades and account balance

I didn’t get profit in both trades. I lost $398.75 in the EuroFX trade including commissions and I won $395.75 in the British Pound also including commissions.

08/04/2020 trades

I shouldn’t be upset… I made a profit without considering commissions. At the end of the day is not real money and this is good learning and I would like to remember that in my opinion the commissions and the slippage should be included when you are backtesting a system. In my experience, if the system is not good enough this will make the difference between making profit or loss.

Account Balance

One of the conclusions that I found in the first 6 days is that probably I should implement a fixed take profit or maybe consider a trailing stop. It’s early to say but probably I will run some tests to see if the statistic ratios are better than my current algo.

Thanks for reading this post!

#algorithmic_trading, #Trading, #Euro, #EUR, #GBP, #British Pound, #USD, #EURUSD, #GBPUSD, #Dollar, #performance, #profit, #loss, #FED, #COVID-19, #Robotrader

Day 5, Profit after a hard day

The 5^th day was a positive day. It was the first day in which the algo was triggered in Euro FX future, known as 6E in CME. Until this moment, the algo was executing orders only in the British Pound futures. Let’s have a look at both instruments:

Euro FX

The algo performed very well showing its real purpose. It entered long in a retracement and luckily after that, the Euro went up. It was a very directional day.

6E 06/20 

 

As you can see there were only 2 moments in the day in which the position was losing money.

Orders 6E 06/20

The final profit was $1657.50. 

British Pound

As I said before this currency cross has been recently quite volatile in comparison with the Euro/USD. I believe that the news has a bigger impact on this instrument.

6B 06/20

I was looking at the different parameters when the notification popped up on my screen. At that moment, I had a feeling that this trade couldn’t end up in profit. I saw the P&L falling continuously for an hour. After that, the price went up to the point in which I entered. I felt a little relieved but I knew that it won’t last. It dropped again making a double bottom. Even if I don’t believe or follow the charts, I had a little belief that maybe the price will go up again breaking the confirmation line. I was right. The price went from 1.2292 to 1.2395. As soon as the US trading session started, the USD raised versus other currencies. This pair plunged to 1.2303 from the maximum of the day. I believe that after a big movement the prices always revert to their mean but we need to be careful in the current situation. I was lucky because the price recovered more or less 60% of the last downside movement and at that time, my algo closed the position making a small profit.

Trade 6B 06/20

As you can see the MAE shows that at 1 point I was losing more than $1400. We can also see a big MFE showing almost $1800, that was reached after the double bottom. Sadly, as you know, even if it’s not real money, the final profit was far from the MFE. This is why the End Trading Drawdown shows up as $1373.75 the difference between the maximum favorable excursion and the final profit.

Final Profit

The final result was $2127.50. I was happy to have this profit after the losses from the previous week.

Thanks for reading this post. 

The algo, day 1, 2, 3 and 4

Hi, I would like to start this post introducing the idea behind the algo. Also, I would like to highlight that this is not financial advice because the purpose of this algo is to participate in a simulated algo trading competition.

Current situation

One of the first questions that came to my mind was about the current situation with the Covid-19 and how it would evolve during the competition. At that point, was very tricky because it’s very difficult to forecast the future and to be honest, I don’t know how the markets will react to the help provided by the central banks. I see some similarities with the financial crisis, but I believe that there are more unknowns and the lockdowns extensions can trigger some bankruptcies for small and medium businesses. This will result in a decrease in consumption and the gross domestic products will reflect this as well. The financial situation of some companies and individuals will deteriorate and this will affect the banking sector. This issue can have a domino effect. Luckily, the central banks and the national governments are taking measures to try to avoid the spread of the disease and try to go back to normality (even if it’s done gradually)

The algo

I was considering different types of algos before the competition. As you know, some of the most important algo types are:

• trend following 
• mean reversion
• volatility breakout
• range algos

As I explained in the previous paragraph, the situation was one of my biggest concerns and I was expecting the volatility to continue at least for 3 months. Considering that the central banks were approving measures, I thought that the markets could have some rebounds. This is why I decided to design an algo that is able to catch the trend after a retracement. The main indicators used are two Exponential Moving Averages and a Stochastic.

I chose the Euro FX (6E on CME) future and the British Pound future (6B on CME) and every time that the algo is triggered, it sends a 5 lots order.

Day 1, 2 and 4

The algo was triggered only in the British Pound futures during the first 4 days. I lost $655 in the first trade, as you can see it wasn’t the best day. Its maximum adverse excursion was $875 and the maximum favorable excursion was $500 (this explains that the position was showing $500 profit at a certain time during the position was open) 

The second day was far worse because it hit the stop loss. The similarity with the first trade is the maximum favorable excursion that reached $562.5 at some point during the session.

I didn’t have any entry on the third day.

Finally, I had a small profit on the 6^{th of} April. It was the most volatile day.

Summary

I have introduced a brief opinion of the current situation and I have explained how it was one of the most important facts to choose the algo for the competition. I have shared the idea of the algo and I have reviewed the first 4 days. I will keep posting how the algo is performing and interesting facts that can explain some movements in the Euro and the British Pound futures.

Robotrader2020, algorithmic trading competition

I decided to participate in Robotrader and I believe that is worth to share my experience here.

I consider Robotrader as one of the referents in algorithmic trading education in Spain. It offers a series of lectures or seminars with some of the best professionals in algorithmic trading, investment banking, and technology.  In addition, it holds a competition in which the participants need to create an algo to trade automatically for two months. This is the 10^th edition and it’s been a great so far.

The main purpose is to introduce the world of trading and automatic investing to students and invite them to do it using different programming languages.

I think that it is a great initiative even if you have knowledge about investing in financial markets. It is very difficult to find professionals with knowledge in both areas. To be honest, it helps you to understand how difficult is to try to merge one traditional area like trading with technology. Obviously, it depends on each student, some of them will focus on high-frequency trading systems while others will focus in a more traditional trading system.  One of the things that I like the most is that it challenges you on the technology side. I mean, it’s not only programming the algo. It involves making research, try to understand how the markets move, designing the algo, backtesting, optimizing, choosing the right money management system, and putting this in production through a paper trading account. And when you think that you are done…  don’t forget to deal with connectivity because if you don’t connect, the orders won’t be sent to the exchange.

I will be sharing my experience during the competition. It started last week so I have a couple of articles to post.

Finally, I would like to thank the Universidad Politecnica de Madrid (and everyone that is supporting this event) for this initiative.  Please see this link if you want to have a look:

https://blogs.upm.es/robotrader/

Thanks for reading this post. 

Looking at LS Crude Oil and its opportunities with calendar spreads

Introduction

As you know, the oil futures are on the move. Everything indicates that the LS Crude oil is heading to 80 according to Goldman Sachs and JP Morgan. I believe that it’s possible to reach 80 before 2019 considering the current price and its momentum. It´s an 11% upside from the current price. The LS Crude Oil Oct18 started the year at 58.58$ and yesterday, it closed at 72.27$.

LS Crude Oil Oct18

    LS Crude Oil Nov 18, daily, source: TradingView

This is the perfect chart to explain how this commodity has performed this year. It represents 24.39% up in the year. After the last OPEC meeting seems that has more upside potential because they didn’t agree on any increase in the oil production.

The Spreads

    LS Crude Oil Dec18-Jan19 Spread, daily, source: TradingView

Probably this is the best spread for new traders or even for experienced traders because they will have a lot of opportunities with limited risk. The spread has been ranging between 0 and 0.80 the most part of the time.  You can see that each time that it opened above this level was a clear sell signal.

   LS Crude Oil Dec18-Mar19 spread, daily, source: TradingView

We can see a bigger range in the 3-month spread as it was expected. I´ve never been involved with energy products but looking at the chart. I would consider buying below 0.60 and selling above 1.80. This is an easy conclusion, however, trading this spread is not that simple.  

     LS Crude Oil Dec18-Jun19 spread, daily, source: TradingView

To be honest, this spread seems an outright. When the front contract falls, the spread falls really aggressively at least in the first 7 months of the year. Both outrights have been converging in the last 2 month.

Conclusion

As I said, I haven´t been involved with energy products and this is why this post is not as big as the other ones. It´s a great product and there are so many ways of trading it. I think the Oct contract will keep going up. I’m not sure about the movement of the spreads because the back of the curve is converging with the front (as we saw in the 3-month and 6-month spread). Probably the producers are buying futures because they expect higher prices of this commodity in the future. I hope you like.

Have a good trading!!

FGBM vs FGBL

Introduction

I love macroeconomics, this is why I have some preference for the interest rate derivatives. If we check the main European fixed income futures, we need to have a look at the Eurex exchange. One of my favourites futures is the FGBL (bund future). However, it’s difficult to trade for individuals with small accounts because it’s easy to get stopped out. If the 10-year bund future is to volatile for you, I would recommend having a look at the FGBM (5-year bond future known as bobl) It has the same tick value as the FGBL and it´s less volatile. And if you are starting, I would definitely go for the FGBS (2 German bond future called Schatz).

Can we trade these products only looking at the macroeconomic indicators?

Well, I believe that you can, it depends on the size of your account, the trade size, the strategy (risk management, money management) …

If you have a big balance, you can trade according to the macroeconomic data as far as you trade a small size and you look for the medium term or long term. The problem here is that you need to create your own indicator that shows you the health of the economy. In the current environment, I find this challenging because some assets are influenced by the central banks' decisions and political uncertainty (it’s very difficult to measure these factors and include them in a model). I highly recommend to set up a stop if you are going to trade like this.

    FXandFixedIncomeTrading logo, own elaboration

What are the alternatives of trading trends?

If you don’t like to trade trends you should be looking for market neutral strategies.  This kind of strategies are used by hedge funds. It basically consists of hedging. It seeks to avoid the market risk. The way to apply this strategy with futures is with intra-product spreads or inter-product spreads.

FGBM-FGBL Spread

I’ve been looking for a trading strategy like this for a while. I decided to spread the FGBM and the FGBL at the ratio of 3 to 1. I have checked only the charts but they look good to me.

     FGBM-FGBL Dec18, daily, source: TradingView

As you can see it has been moving in range since the middle of June. The range of the spread has been 160 ticks (234.60 and 233) while the bund range has been 291 ticks. I wouldn’t recommend holding overnight positions because these futures can open with a gap.

Conclusion

Sometimes is worth to consider market neutral strategies. Their main advantages are: there are multiple of entries, they are less risky than the outrights, you can consider as an alternative strategy if there is a lot of uncertainty in the market.  Obviously, the ratio 3 to 1 used in the example is random. I could have chosen a different one. Ideally, we should compare the DV01 of these futures and get the ratio from there. On the other hand, you can consider the different volatilities of the products involved or the correlation to get the spread ratio. Also, you should think about the trading commisions and the margins because it’s not the same to trade a 1 to 1 spread than 100 to 200. Having in mind all of these factors is not easy and requires a lot of work. Sadly, after testing the system or the strategy you can be disappointed with the results. Don´t give up and keep trying to improve it.

Have a good trading!!

Disclaimer

I wrote this article myself, and it expresses my own opinions that shouldn't be used as a trading advice. Trading carries considerable risk due to the high leverage involved

How the main futures reacted to the Non-Farm Payrolls, US wage growth and US unemployment rate

Introduction

The Non-Farm Payrolls is one of the most important macroeconomic releases of the month. According to my master’s dissertation, it’s the macroeconomic release that has the biggest effect on the markets.

If we look back 10 years, we can conclude that the biggest impact in the markets has been made by the monetary policy applied by the different central banks around the world.

The Figure

I expected a lower figure like the most part of Wall Street analyst… To my surprise, the US added 201000 jobs in August. The previous figure was 157000, so we saw an important increase. The unemployment rate was unchanged at 3.9%. Probably the most important release of the day was the US wage growth. It showed 2.9 % which is a level that we hadn´t seen since 2009. The US economy keeps pushing and probably we will see another rate hike in the next month. Considering this good news we should expect a sell-off on the fixed income futures.

Eurodollar

    Eurodollar Dec18 futures, 15 min, source: TradingView

The positive surprise on the US wage growth and the US Non-Farm Payrolls create an opportunity to sell for the traders.  Maybe you think that 7 ticks are not enough but considering the nature of this product is a big change. You can compare the daily range from the previous days in the chart above.

Fed Funds

    Fed Funds Jan19 futures, 15 min, source: TradingView

The traders reacted in the same way as the case of Eurodollars. It took this future to the previous support at 97.65. Considering the upcoming rise in the US interest rates, I expect this future to keep falling.

10Y T-Note, 5Y T-Note and 2Y T-Note futures

We saw a strong sell-off in the US bond futures. The main difference between them is the range of the movement. Obviously, the longer the duration, the bigger the volatility and the movement range as we can see in the following charts.

   10 Year T-Note Dec18 futures, 15 min, source: TradingView

The 10 Year T-Note Dec18 futures fell 49 ticks. It broke the previous support.

    5 Year T-Note Dec18 futures, 15 min, source: TradingView

Even if the chart seems similar, the 5 Year T-Note Dec18 fell 32 ticks.

    2 Year T-Note Dec18 futures, 15 min, source: TradingView

It fell 11 ticks and again we can see an important move.

An alternative

The main problem of trading the Non-Farm Payrolls is that the liquidity disappears just before the data is released. There is the possibility to execute at a bad price if we enter a market order.  Another problem is that you shouldn’t place a stop loss near the limit order because probably it will be triggered.

The alternative of trading the outrights would be trading spreads. The advantage is that we can trade a bigger position than in the outrights because we are hedged (or at least in part). If we take the spread between the 10 Year T-Note and the 5 Year T-Note at the ratio of 1-1, we can see that movement was only 17 ticks. If we decide to trade this spread and considering positive news for the US economy, we should sell the future that represents the future with longer duration and buy the other one.

Summary

We have seen how a macroeconomic release can affect the markets and how the traders interpret the data and execute the trades.  Nowadays, at least 70% of all the trades are executed by automatic trading systems and they are quicker than the point an click traders so making a profit in this kind of releases is getting really difficult. The only possibility would be position yourself with a small size in the right side of the trade and with a reasonable stop loss. If you don´t want to trade the outright, you can trade the spread. In this case, you need to make sure that you make enough ticks to cover the commission because you have double commissions. I hope you like it.

Have a good trading!!

Disclaimer

I wrote this article myself, and it expresses my own opinions that shouldn't be used as a trading advice. Trading carries considerable risk due to the high leverage involved

Simple trading system, does it work in the Nasdaq?

Introduction

There are so many trading styles and the traders can take their decisions from technical analysis, important levels, value investment, quantitative analysis, price movement, and order book study. Some of them combine more than one method at least to have another point of view or to have another idea generation source.

Nowadays, it's easy to find resources for trading. There are plenty of resources online, such as videos and courses. If you are more traditional, you can search for books and see what the people are saying about them.

Some of the most successful traders are known for being contrarians. What does this mean? Maybe they are aware of how powerful the trends could be, however, they are not investing for the long term. They are looking for a quick profit in a short period of time (depends about the how big is the position, who is executing and what are the targets, it can last from a few seconds to less than 3 months).  How do they act? Basically, if a stock or a future has been raising for a while and has a strong trend, they can consider that the product is overvalued and that it will revert to the moving average or at least it will revert enough to make a profit.

The idea

Now, we know what they do. I always thought about it. One of the problems is the timing when I should enter into a trade like that. There are so many statistical methods that you can apply to that. It can be based on the number of days (imagine that the stock has been raising for the last 60 days and you think that every “X” days, there is a retracement), it can be based on the price change (that you can consider it overvalued), it can be a combination of both. We can see that creativity is another part of the trading research. Probably, I will write a post about the whole process in the future but today we are going to review a simple idea.

The trading system is contrarian so it will consider yesterday % change. If yesterday the stock or the underlying product went up, the system will sell it today. And the other way round, if the stock fell yesterday, the system will buy it today.

Nasdaq

I’ve chosen the Nasdaq index as an example. It represents the technology stocks.

    Nasdaq continuous future, daily, source: TradingView

It hasn’t stopped rising since 2010. I wanted to show the period 2014-2018 that I will study in this article. Considering the strong bullish trend maybe I shouldn´t use a contrarian system. I will show you that one of the most important aspects is the risk management (always combine with a profitable system)

Backtest example

Before we start, I need to explain a couple of things. In my opinion, the market behaves differently when it goes up than when it goes down. The falls usually are very sharp. This is why I decided to choose a tighter stop for the sells. I’ve chosen the stops randomly, the buys have a stop of 4 ticks and the sells have a stop of 2 ticks. Let’s check the results:

                                        Backtesting, own elaboration using R

Good news! The mean is positive which is a good starting point. However, making $9.53 per trade is not enough without considering fees and slippage. The system makes $2190 on the best day. The worst lost is $20. The kurtosis is really high because all the values are concentrated around 0. To be honest, the system only makes money on the 3% of the trades. So it’s not tradable even if it makes 103.65% in four years. It would be great if the system had more entry requirements and the number of trades would be reduced. That way the statistics would improve a lot. The Sharpe ratio isn’t great. 

                                                           Max drawdown, own elaboration using R

Considering that the trading system loses in 97% of the trades, the max drawdown is very good. Obviously, each time that it loses, the amount is very small (around 0.2% of the portfolio)

Trading strategy performance, own elaboration 

We can see the characteristics of the system. A few profitable trades and a bunch of losing trades. The probability of taking the loss is very high with our tight stop losses. In other hand, every time that we are right, we make a lot of money.

Sum up

Sadly, there isn’t a good conclusion for this post. I think that I have a lot of work to improve this system.  In addition, this is not a professional way of running a backtest. We should have a period of time in which we test our idea, another period for optimization and different windows of time to test the optimized parameters. Also, we should always consider broker fees and slippage. The system shown is not tradable but it shows that a sounding risk management system is very important. Another idea that we should take from this post is that even a contrarian system can perform in a market that has a clear trend. I hope you like it.

Have a good trading!

Disclaimer

I wrote this article myself, and it expresses my own opinions that shouldn't be used as a trading advice. Trading carries considerable risk due to the high leverage involved

Eurodollar, looking to the year to date behaviour and the spreads

Introduction

I consider that we should follow the central banks' steps. It´s very useful to adapt your strategies to the economic policy applied and the central bank recommendations. This applies more to investing in a medium to long-term that for day trading. However, it can be interesting to test a trading system with a variable that tracks if the central bank is bullish on the economy or if it has a negative outlook. Today, I will focus on the Eurodollar futures situation.

Outrights

According to the Fed’s positive outlook on the US economy and due to the accelerating growth and rapid job creation, it’s expected that we will see two more interest rate rises this year. With this scenario, the futures should be falling at least  the  next expiries (December 18 and March 19)  

    Eurodollar Dec18, Daily, Source: TradingView

The front-month contract has behaved as expected during the last year. However, the uncertainty about the trade war between US and China has stopped the bearish trend.

    Eurodollar Dec19, Daily, Source: TradingView

This chart is similar to the previous one but this contract is more volatile. 

   Eurodollar Dec20, Daily, Source: TradingView

Again, the volatility is higher for this contract because it expires 1 year later than the previous one.  It closed at 97.06 which implies a lower interest rate than the Dec 19 contract. we will see later how this affects to the interest rate curve.

    Eurodollar Dec21, Daily, Source: TradingView

This contract is more interesting for trading purposes because the daily range his higher and it can offer more opportunities to go in and out.

Comparison

   Comparison Eurodollar Dec18-Dec19-Dec20-Dec21, Daily, Source: TradingView

In this chart, we can see the differences between the 4 contracts showed before. Probably, one of the most interesting aspects of this chart is that the closest expiry shows a smoother price than the other price. This is related with the volatility. At the beginning of the year, the contracts were trading as expected with widen spreads however the trade wars speculation from the middle of May has made the contracts to converge and the spreads have narrowed.

Spreads

    Eurodollar Spread Dec18-Dec19, Daily, Source: TradingView

We can see that that the spread Dec18-Dec19 widened in the first three months of the year and after that, it has been in the range 0.28-0.40. The main resistances for me are 0.38 and 0.40. The highlighted in yellow shows the reversal of the spreads due to the trade wars and the FOMC meeting that showed certain worries about the economy overhitting. The Fed officials didn’t give any indication about how willing they were to speed up the pace of interest rate increases. They weren´t worried about allowing the inflation to rise above 2% for a temporary period as far as the economy would expand. You can see this reversal in the previous charts as the eurodollar futures rallied on these days. 

   Eurodollar Spread Dec19-Dec20, Daily, Source: TradingView

In contrast to the last graph, we can see that the spread has narrowed and this means that the interest rate curve is flattening.  The closing price of -0.02 implies that the 3-month interest rates will be lower in 2020 than in 2019.

   Eurodollar Spread Dec20-Dec21, Daily, Source: TradingView

We can see the same pattern that the Dec19-Dec20 spread has. Again it implies that the 3-month interest rate will be lower in 2021 than in 2020. This can be temporary but in my opinion, it means that the US economy probably will slow down in the medium term. According to the spreads, it should happen in 2019-2020.

Sum up

We have seen some of the Eurodollar futures. We can see that the front months are moving in a different way than the back months. This implies narrow spreads and finally, an interest rate curve flattening. The ongoing uncertainty about the trade wars will continue. As far as the US economic growth continues and the labor data keeps as good as it is, the Fed will keep the interest rate increases expected. Hopefully, the Fed will act independently even if Donald Trump puts pressure to change its monetary policy. I don´t think that the international issues will affect to the US economy at least in the near term, however, we need to keep an eye on Argentina and Turkey. I hope you like it. Thanks.

Have a good trading!!

#trading #interestrates #Fed #inflation #US #macro #economicgrowth #eurodollar #GE #ED #spreads #opinion

Disclaimer

I wrote this article myself, and it expresses my own opinions that shouldn't be used as a trading advice. Trading carries considerable risk due to the high leverage involved