The next crossover proved to be profitable as well. The first position hit its PT for 150 pips while the second position’s 150-pip trailing stop got hit after it gained 379 pips. Don’t you just love trend-following systems on trending markets? I know I do!
Unfortunately, the system didn’t do very well during the second half of the week. There were three whipsaws that amounted to a total loss of 175 pips.
It looks like risk appetite picked up when Greek Prime Minister Papandreou announced that the referendum for the EZ debt plan is canceled. Investors were pretty happy about it that not even a surprise rate cut from the ECB took a toll on market sentiment!
Oh well, I guess market participants are just relieved that uncertainty in the global economy has now somehow eased with Greece’s latest decision.
I wonder if the positive vibes will last until next week. If so, we’ll probably see the dollar get sold off again. What do you think?