MP FOREX ADVISORY

Unlike last week, the GBP/USD ping ponged around in a tight trading range between the 1.5200 and the 1.5100 levels for most of the week before ending the week around the 1.5063 level.  The EUR/USD, on the other hand, continued its corrective recovery surging to an eight week high and climbing all the way above the 1.2700 level.  The bullish sentiment was strenghtened by positive economic comments by ECB President Jean-Claude Trichet.  The pair ended the week around 1.2639. 

 

We have recently been working on an alternate trade entry formula, which is designed to have our trades entered only after a pullback following a breakout signal.  Entering on a pullback after a break allows us to position ourselves at a much better entry price, eliminates broker slippage (which has been a significant and ongoing problem), provides us a significantly better risk-reward ratio, and makes it substantially easier to remove trades at the break even price following false breakouts (which should result in a higher success percentage).  This modification has been fully tested and we are excited to begin implementing it next week.  We will keep you posted.  Have a great weekend!