The British Prime Minister Theresa May is heading into a vote of confidence this evening, let’s see what the Cable (GBPUSD) has done today on Inteligex full auto-mode.
Well it’s been a vote of confidence in Inteligex.
Markets hate uncertainty and you can see how the day played out, with 4 trades netting 97 pips profit, including a small loss and a break even in the mix.
We come into the day at -930 with a very narrow set of swarm 1. A classic setup for a breakout, and so we set the day up to capture breakouts to both sides. GBPUSD really only ever starts at 0800 so my time settings start then also.
First trade in, we make the breakout as soon as the vote of no confidence is announced. Traders have already decided she could win and they see that as a boost for the pound. It doesn’t last though and 1hr 45mins later we are stopped for a breakeven (marked 2 on the chart).
At lunchtime (3 on the chart), we see another breakout before rumours start to leak about the PM having enough votes to win the vote. This is sustained for a full 100 pip move. Right at the end of the arrow se see a third trade that lasted under 15 minutes as a surge candle came into play. This was a fast trade and was all over in under 10 minutes as the move surged, only to fall back to our breakeven stop.
Finally trade number 4 is another breakeven trade.
But what if you had decided to trade the short side? Did we lose a lot there?
Actually the opposite. We expect to trade both sides, and we set ourselves up for breakouts again. No trades at all until about 17:15 when a short trade was signalled that we are still in at time of writing. The stop is nicely tracking the price down. We can’t lose on this trade, always a good feeling. All trades are timed to end at 21:00 as the trading is very thin after that point. No new trades will be entered after 19:00.