Heisenberg Certainty Principle

Last night I looked at the next day’s events and realized that we had some big whoppers scheduled ahead of the open. Affected currencies – mainly the USD and the Canadian Dollar (CAD). That’s usually good for some fireworks and as I was pondering the blood letting that would surely ensue it suddenly sparked one of my diabolical ideas:

Just for shits and giggles – why not see how Heisenberg would endure under such conditions? Usually my approach is to avoid big events like these – but I wagered to do the exact opposite. Full disclosure: this was an experiment and I wasn’t using real money (I’m not that crazy) – plus I was still testing the messaging module – thus it was running against my demo account. Let’s see what happened anyway:

Let’s take it from the top:

• AUD/CAD hit its 1R stop overnight.
• CAD/CHF took profits at 1.2R and then re-entered for 75% of the units. After that it got stopped out on a push back to the 4R mark. That’s roughly 3R+ of profits (I still have to run the numbers).
• USD/CAD – also stopped out overnight – by half a pip – bummer! This one would have run higher otherwise. But we have to be honest and count it as -1R.
• EUR/CAD took profits at 1.2R and then re-entered. Realistically you would have not re-entered for 75% of the units per the alert following it right away as that candle was swinging wildly during the announcement and hit the b/e stop right away. Given that you may have gotten a very lousy fill in that I only count 1R+.

So the total comes out at ~2R total – not bad I’d say. But realistically it would have only been 0.5R had I ever attempted to do this with real money. Because I would not risk more than 1R total on the CAD to begin with to avoid correlation risk. The questions of course poses – should we keep Heisenberg running against risky pairs overnight? And my answer would be clear – probably not.

In any case – when we parse for trending charts for Heisenberg we are always looking for correlation risk and rarely would two CAD pairs make it on the roster concurrently. The only exception Scott and I agreed upon was a case in which one of them has already banked 1.5R and the ISL has advanced to the b/e point. In that case we’ve got a bit over 1R locked in and it’s permissible to take on a similar one. But it would have to look super sweet to be honest.

I hope this gives you a little insight in how Heisenberg flows and, in particular, how it operates under volatile conditions. I can’t promise that it’ll always do this well when things get dicy but thus far it continues to kick as and take numbers 24×5.

Incidentally Heisenberg has done very well this week on the CAD/CHF – see above…

Good news by the way – this allowed me to test the new trailing alerts this morning and did find a few things I need to fix. But I’m pretty confident we’ll be able to start the alerts early next week. If you haven’t signed up for the FREE beta then point your browser here.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,