Monday, November 24, 2008

Has the Cross Trader lost it's mind?

I get a text message a little while ago from my EA. It seems that after placing only sell orders for the last month, it has decided to place a buy order. If you look at the GBPJPY 4hr, it would seem like there is a definite downtrend and we are in the middle of a retracement. Here is the 1hr chart, which emphasizes this "retracement".



However, if you look at the moving averages as I have placed them, it looks like a clear uptrend signal. This is what the Cross Trader based its decision on. I'm not sure I completely agree with this but I will at least let the current bar complete and see if I need to interfere or not. So far in the last few weeks it has turned $300 into over $1500 (with a little help from me), so I'm reluctant to go against it with that success rate. This trade could be the exception, though.

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