Coming off the Jackson Hole FED reaction today MST generated a LONG signal entry in the DX (Dollar Index), which closed out an existing short position as per the recent ‘green up-arrow’ on the Day-Chart below:
The DX long entry position simply offsets the short position as per the ‘red-arrow’ from the day chart above. This trigger in DX marks the end of the ‘seasonal’ USD Index trade for 2016, which started in March-July; ie., any signals that are generated in this timeframe are ‘actively’ traded:
1st Seasonal DX trade (2016): Long
Entry: 06/23/2016 (BREXIT DAY) = 94.20.
Exit: 07/27/2-016 = 96.835
Profit (1 lot): 2.635/contract = $2,635/contract
2nd Seasonal DX trade: Short
Entry: 07/27/2016 = 96.835
Exit: 08/26/2016 = 95.02
Profit (1 Lot): 1.815/contract = $1,815/contract
Total P/L for DX trades in 2016 = $4,450/contract
The trade location on this long DX U6 signal looks good, though i did not take it, staying consistent with my trading plan,but I did re-enter my SHORT position in the CHF (Futures 6S U6) (Swiss Franc):
From the day chart above we can reference the most recent system-generated ‘short’ signal as per the (most recent) ‘red down-arrow’; I didn’t like the trade location on this, but CHF is one of my more ‘consistent performing markets over 10 yrs, and I take all signals generated in the markets that I trade. Having said that, I was stopped out of my Short position in CHF U6 futures above the 1.04 level, as the market head-faked. By observing the activity across most asset classes today, and given the Dollar strength it appears as though there may be a reinvigorated down-trend in currencies ‘against’ the Dollar Index re-emerging, with CHF being very strongly and inversely correlated to the USD Index. So I re-entered the market short in CHF, based on the ‘Long’ USD INDEX (DX) long signal, and given the intraday-type momentum reversals that occurred – as most asset classes experienced key outside reversals off the initial comments made by Yellen, which were reversed (faded) into the close today.
My portfolio at the end of the day looks like this:
Futures Trading 