200% Returns But Why October 23, 2012 Problem?

Discussion in 'Forex Trading' started by signalstop, Nov 28, 2012.

  1. We have a profitable strategy that does reversion to mean, market making but it also takes into account economic news releases.

    The question relates to October 23, 2012. On that morning at 8:33 am EST several high liquidity pairs experienced a sudden jump in volatility. Ordinarily that occurs due to a news release.

    However, searching of online news and event calendars turns of zero explanation as to why?

    The symbols such as USD/CHF, EUR/USD, and GBP/USD.

    So far all events that occur have clear reasons whether it's a regular economic news release or some unplanned news announcement.

    Does anyone have any idea what happened on October 23, 2012 at 8:33 AM EST?

    The strategy hit the stop loss on that day which is a rarity. We wish to figure out what occurred so as to avoid in the future, if possible.

    Thanks in advance for any advice, ideas, or assistance.
  2. danielc1


    Did you also look at astronomy events?
  3. Maybe we should check horoscopes too? :) lol

    Pardon me but I assume you were kidding. If you were serious, I guess you need to clue me in.
  4. JB3


    Seriously, where have you been, in a cave?

    Your code needs to incorporate weather as well.
  5. Lucrum


    Global Warming?
  6. DB9


    made 300% last month But How can i hear TV while munching on cornflakes ?
  7. DB9


  8. Wasn't that when Sandy was announced?
  9. danielc1


    I think that the point is, that you have a return of 200% and that your stoploss did what it has to do: prevent you from a major loss in the case you or your trading system went wrong. Yes, you can search for the reason why your stop was hit at that moment, but if you did your research and nothing can be found to validate the reason why your stop was hit, it just did what a stop must do: Stop you from a major loss when something happens and you do not have a clue what is happening. So why would you search for the reason beyond your normal search? Next time it will be a different reason. If it is for improving the system you have, then you did a big 'no no' in trading. Trading with money while your system is not fully developed. If that is the case, then you 200% return is a flug and not duplicatable in the nearby future.

    Btw, I was not kidding about astromony :D
  10. one does not simply attribute price movement to one specific news item (unless it's a terrorist act)
    #10     Nov 30, 2012