SPECIAL SUNDAY UPDATE: USDCAD DATA POSTED

“There’s more here than meets the eye!”

Over in the right-hand column under “Download Links”, I have made available the 8HR (1/1/2017 – 9/1/2017) data from 08:00 – 16:00 Turnkey server time (busiest & most liquid hours of the day), & weekly data (12/31/2011 – 9/10/2017) for USDCAD (Appendix C to the Scalper’s Algorithm). All files are in Adobe PDF, and are available to view online and/or download to any platform, and of course are freely available for everybody.

One of the “slightly” correlated FX pairs I’m following is USDCAD; by “slightly”, I mean this pair correlates over the medium to long-term with commodity prices, specifically crude oil. There isn’t much in the way of day-to-day, tick-for-tick movements with crude oil, unless there are violent moves up/down in price; more likely, the general trend of USDCAD over weeks, months, and years can be somewhat correlated with the price of crude oil; therefore, it makes for a decent medium scaled volatility pair to trade.

I must admit, I’m pleasantly surprised by the data. While all of the other 4 original pairs to the “Scalper’s Algorithm” have 08:00 – 16:00 server time, as the “hot” hours to trade, the USDCAD data does not reflect data that happens in the North American afternoon; I specifically left it out because I want to compare “apples to apples” among the pairs so people can see the data for the exact same time periods over weeks, moths, and years. Having said that, I originally thought the data would reflect lower volatility numbers than it did, especially for the 8 hours under consideration. I was surprised to see that USDCAD was only “marginally” lower than GBPUSD by a few percentage points. If I had taken into consideration the afternoon trade in North America [EST], I think that difference would be made up rather quickly, and that you would see USDCAD as volatile as GBPUSD [even maybe slightly more]; before I ran the numbers, I did not have this opinion.

This is important information with respect to  two areas; 1) it allows you to trade a pair that is more “North American” in scope; meaning, you don’t have to get up as early as the European pairs to start your day to get the same relative volatility as GBPUSD and/or GBPJPY, and 2) it opens the possibility of trading the cross GBPCAD, and giving traders the opportunity [if they wish] to move themselves away from the YEN in GBPJPY, without giving up anything in terms of relative volatility during the course of the day.

All of which is the reason I’m adding GBPCAD to our list of pairs to trade, thus bringing the total to six; in the days/weeks ahead I’ll be doing the data for this cross [8HR & weekly]. When I have finished all 6 pairs, all the information will be highlighted in a “Summary Volatility Table”, that will be posted in the “Download Links”, updated each quarter going forward; with a click of your mouse, you can judge quickly & easily which pair is right for you and determine your reward/risk profile.

With the addition of USDCAD today, three of the six are finished and posted (USDCAD, GBPUSD, & GBPJPY); I’m in the process of gathering the data for the other three (GBPCAD, EURGBP, & EURUSD), and should be finished within about 2 weeks. GBPCAD has a slightly higher spread, coming in around 0.8 – 1.1 PIPS during the European / U.S. session, but the advantages of this pair outweigh the marginally higher net cost to trade. For some of you, who wish to escape USDJPY, this pair will give you all you want and then some, and can be quite volatile … in other words, it’s right up there with GBPJPY in terms of volatility … I haven’t run the numbers yet, so I can’t say for sure, but I think for a lot of traders (especially those in the U.S.), this pair could be a great fit. Hopefully, next week I’ll have GBPCAD finished, then it’s on to EURGBP, and finally I wrap everything up with EURUSD.

Have a great rest of your weekend everybody!

-vegas

OUR TURNKEY FOREX “PAMM/MAM” IS NOW OPEN AND OPERATIONAL; SEE “PAMM/MAM MONEY PROGRAM” IN “DOWNLOAD LINKS” SECTION IN RIGHT HAND COLUMN FOR DETAILS [VIEW ONLINE AND/OR DOWNLOAD] AND START YOUR JOURNEY FROM WHERE YOU ARE AT TO “ESCAPE TO SUCCESS”!