Forex Market Directions

Manual Trading Vs Auto Trader Robots

For all you manual traders out there having a hard time trading I am sure you have considered using Auto Trader Robot also known as Expert Advisors or (EAs). You have to decide if you are going to turn over your hard earned money to a robot trader. I can’t tell you what to do but I can give you my personal experience with this matter.

I have been trading for about 6 years. I always traded manually. I did not hear about EAs till about 6 months ago. Of course if I can get a robot to trade for me and I sit back and collect the green well what is wrong with that?

To start, I find Trading Robots to be a whole heap of rip the traders of crap!!! Here is what I did. Of course I am not to to risk my entire trading account to a robot. I keep trading my account manually but I opened an account with a popular broker that offers the Meta Trader Platform. I deposited the minimum required for that broker which also happens to be the minimum that most auto trader sites say you can start with.

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The FOMC, Quantitative Easing and the Dollar

• The currency market view of quantitative easing
• Monetization or a stable dollar
• The normalization of Treasury rates
• A foreign veto on quantitative easing?

After a few months out of the currency spotlight the Federal Reserve will once again be the focus for traders when the Federal Reserve Open Market Committee (FOMC) meets this coming Tuesday and Wednesday. This time it will not be the Fed Funds target rate, the central bank’s chief historical policy tool, that will be the locus of interest but the several special programs that the Fed has used to stem the financial crisis, in particular the quantitative easing attempt to cap Treasury interest rates.

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The FOMC, Quantitative Easing and the Dollar

After a few months out of the currency spotlight the Federal Reserve will once again be the focus for traders when the Federal Reserve Open Market Committee (FOMC) meets this coming Wednesday and Thursday. This time it will not be the Fed Funds target rate, the central bank’s chief historical policy tool, that will be the locus of interest but the several special programs that the Fed has used to stem the financial crisis, in particular the quantitative easing attempt to cap Treasury interest rates.

Various Fed disbursements have added more than one trillion dollars in liquidity to the United States financial system. With up to $3.25 trillion in Federal debt sold or slated to be sold in the credit markets before the end of the US fiscal year in September oversupply and inflation are serious potential concerns that could drive Treasury interest rates considerably higher.

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Treasury Rates and the Dollar

In a normal world these two charts would be complementary. As interest rates on the 10-year Treasuries rise one could reasonably expect the Dollar Index to follow. But ever since March18th when the Federal Reserve announced its $300 billion quantitative easing policy, the divergence has been pronounced.—the higher Treasury rates climb the lower the Dollar Index sinks. Has the natural order of the currency markets been upended?

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The Green Revolution?

Several confidence measures in the United States have returned to the levels they held before the great financial collapse last fall. Do they presage an impending economic recovery?

US Consumer Confidence readings from the Conference Board and University of Michigan have pulled out of their deep post September troughs. The same is true for the Institute for Supply Management’s (ISM) manufacturing and services surveys. But these forward looking sentiment statistics contrast markedly with measures that gauge actual economic commitments. The performance of the consumer and manager is much at odds with what they say is their economic view.

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Crosscurrents

The factors driving the dollar seem to vary with the season. Last fall at the height of the financial crisis safe haven flows trumped all considerations; at one point investors accepted zero return for the security of holding US debt. The dollar rose 17% against the euro in a month and made similar gains versus the Pound Sterling, the Canadian Dollar, the Swiss Franc the Australian and New Zealand Dollars. But even at maximum market panic dollar superiority was not total; the imploding yen carry trade drove the dollar down against the yen to 90 to the dollar despite the huge inward flows to US securities.

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