What is the overall strategy used in Alpha Currency Profits?
The Alpha Currency Profits process is as follows:
- Every day Graham screens the currency markets looking for price moves that are three standard deviations away from a currency’s historic average.
In particular, he focuses on the U.S. dollar, the Euro, the British Pound, the Canadian Dollar, the Australian Dollar, and the Swiss Franc.
- Once a currency stages a move that is three standard deviations away from its historic average, he zooms in on its price action to see when its central bank begins to intervene.
As soon as Graham sees the currency begin to move back into its normal trading range, he knows the central bank intervention is officially underway.
It is this intervention that generates an “Alpha Signal.” And that’s our signal to open trade to bet on the currency fully resolving back to its historic trading range.
- It’s then a waiting game as we wait for the central bank to complete its intervention. Once the currency has returned to its historic average price, Graham knows the intervention is ending.
And that’s our signal to close our trade.
This might be a little difficult to visualize… which is why we provide a recent example from an actual trade in your strategy primer. Click here for access.