The current week is the most important of the month because it will provide two days of high volatility that may significantly affect the trend throughout December. In fact, tomorrow is animated by the Press Conference of the ECB and NFP data will be released Friday.
The performance of spread trading in November
Our portfolio of spread trading has ended the month of November with a profit of +402 pips but also recorded an high DD (about 10%). Today, however, we sold some positions with a loss of -170 pips and other remains still open. The total gain of 2015 to date is +2457 pips.
How to trade on news ECB and NFP
Tomorrow and Friday we position on EURAUD Long and EURCAD Short following a spread that is back positively correlated and in seasonality. So in this spread trading we rely not only correlations between currencies but also to a seasonal effect.
Seasonality us back is the five years that the 10 years, a high percentage of probability of upward movement in the spread EURAUD vs EURCAD (or vice versa downward).
We can also evaluate the closures in the spread of 15 and 21 and you can see a period (about 15 days) of the uptrend that will try to take advantage.
We will update you on the results of trading on the weekend.