So it isn’t just the Hares that go mad in March… I don’t need to write an essay on Corona virus as we all know about the crisis each and everyone of us is living through, so onto trading…
I had positions both sides of Euro at the beginning of the month, the buy side cycled very quickly with volatility reaching record levels. Obviously fuelled by central government easing the currency on the run up to an expected rate cut to -0.5% and pricing this into the market way ahead to combat the inevitable sell off, massive volumes of carry trades were likely liquidated fuelled by the race of G7 nations to cut interest first.
My first cycle of sells is likely to conclude hopefully this week and I am very comfortable with my second cycle of positions to be held until the end of the month. If they come in sooner then great but I’m hoping to add more next week if price presents itself to my levels.
The anticipated drawdown due to this move has been managed comfortably.
The development of the crude oil price war did catch me out on a CAD trade, I have an initial position that I expect to hold now for a few weeks (unless we get more surprises from the US/Canada to defend their positions). Again, this is a first cycle trade so I have plenty of capacity to add into the position when the opportunities arise and it could build into a very healthy trade.
This month is about managing margin and trading the plan. I can take reassurance that during these wild market conditions and managing live trades directly involved in these volatile moves reaffirms that my current market approach is sound. Witnessing EUR taking out all of 2019 in a matter of days was a humbling experience and one I am grateful for to keep me grounded. Many traders have bitten the dust.