Today the market sentiment shifted a lot and we constantly adjusted trades and positions to evolve with the market. Initially expected risk appetite to be the flavour of the day, we began with selling Gold. This did not work after Japanese equities fell and oil tanked, so we closed the position at a loss and bought EURCAD . This worked, twice, and we closed it in profit. We also capitalised by taking USDJPY sells in the morning and successfully closing 4 such trades in profit.
We also went short AUDUSD after the PBOC fixed the yuan rate lower. This did not work, but I have not cut yet, as I believe this to be a sound trade. Will cut if it the Aussie Data tomorrow is not good.
In the afternoon risk appetite returned a little and we made successful trades sells on EURUSD and buys on USDCHF. We also closed two USDJPY buys in green.
We next focused on our expectation on decent UK data, (which clearly got leaked today at 10:28 AM GMT +4). We had had three GBPUSD buys and a EURGBP sell, all of which we managed to close in profit. Unfortunately, as posted on twitter, I did take profit too early, but I have little faith in the pound and better safe than sorry. When each one of our trades is over 400,000 units, we do not want to take unnecessary risks.
Overall not a bad day and the trades we closed leave us with a realised profit of 4% on account equity.
With oil doing well and equities remaining in green, I expect our remaining trades to perform well. We are selling gold, buying usdjpy, buying usdchf and selling audusd. Especially if US data lives up to expectations.
P.s. If oil crashes, equities will follow it meaning a EURCAD buy or CADJPY sell is a good way to protect yourself.