Portfolio Performance : -4.73%

US Dollar Barometer stands at 0

Trade Recommendation : Long GBP/USD

Bottomline : I am still short on USD/CHF, even though the portfolio is bleeding heavily. It is quite likely that the trade might wipe out the entire equity, but I am keeping my fingers crossed. A revenge trade? I guess it is, if this does not work out, I might might to raise more capital

Gold had a big move today. Commodities and equities still under pressure. The bond market is still the place to be.

Chun I Lee, Ike Mathur and Kimberly C Gleason in "The Tick/Volatility Ration as a Determinant of the Compass Ross Pattern"

According to the study, there is evidence that the compass ross pattern is absent in the spot and futures forex markets but present in the intraday returns, especially so for the holding periods of less than an hour. A Monte Carlo investigation of the tick/volatility ratio provides evidence that the pattern appears only if the tick/volatility ratio is above some threshold value. The fact that the daily patterns do not exhibit this pattern is because the ratio is smaller than the threshold value.

In other words, to have a high tick/volatility ratio, we must have either a big spike in prices or a sharp drop in volatility. Once this happens, the paper suggests that the price actions in forex move almost completely randomly in the longer time charts but more predictable in the shorter term charts (i.e. less than an hour)

The picture of the compasss rose pattern is shown above