FX League – JPY And EUR On Top While CAD And AUD Are On The Bottom.

That’s my first analysis published at British version of investing.com. I analyse the market using my own-made complex mathematical algorithms which check every currency under two conditions: Trend and Momentum.

But to begin with, the group of G-10 was reduced to G-8 by dropping Swedish Krona and Norwegian Krone out. Secondly, I consider every combination of G-8 currencies and split 3 points between every two for Trend and 3 points for Momentum. Furthermore, every currency collects points for its own account during 7 games, so totally can get 42 points and there are 28 cases to analyse. Finally, I form a League Table and buy the currencies that are placed on the two top places for currencies that are placed on the bottom of the league, two as well.

The first competition is about the trend, I try to answer one very important question: “How strong the potential of the trend is?” and the results are published in the graph below. Many people can get confused how I could give more points to the Euro than to US Dollar in the Trend Category, but all the readers must have in mind that the point is to work out the future power of the trend, not the actual or even past. Moreover, Aussie is the weakest currency, while Euro the strongest one. Aussie and Kiwi scored 1.5 and 6.3 points respectively, so that is not the appropriate time for investing in the currencies of Oceania.

The second aspect to consider is the Momentum. I try to answer the question: “How perfect is the time for entry?” The calculations are based on different formulas than it was with Trend, and so the graphs representing Trend and Momentum are rarely similar to each other. Same as with the Trend Category every currency can score 21 points. The leader, third week in a row, is Japanese Yen, but Kiwi and Aussie are really close. The lowest scores achieved by Swiss Franc and British Pound.

To figure out the League Table I sum up the points scored by each currency in these two areas: Trend and Momentum. In other words, the league table is the trade-off between Trend and Momentum, we need to enter the market in the right moment and in the right direction (trend). Let’s concentrate on the final results, the winner of the week is Japanese Yen which scored 24.6 out of 42 points available. What’s more, the second place was achieved by Euro. The currencies on the bottom really close to each other, but the weakest one is Aussie while Franc and Pound has secured 5. and 6. place respectively.

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More specifically:

Taking all this into account, I open such positions:
1. AUD/JPY - SHORT from 95.14 (volume: 3*x.)
2. CAD/JPY - SHORT from 97.58 (volume: x.)
3. EUR/AUD - LONG from 1.4427 (volume: x.)
4. EUR/CAD - LONG from 1.4074 (volume: x.)

And there is a bonus position:
*EUR/CHF - LONG z 1.2111 (volume: x.) – the highest outclass in a single game I have ever met.

*the gaps may occur, so the entry prices may be different.
*opening the position just after midnight.
*closing just before the closing of the market on Friday’s evening.