EWY Etf South Korea Market Bull Market Analysis March 2026

 

Analysts at Bank of America believe South Korea’s financial markets may continue to perform strongly in 2026, pointing to several economic and policy factors that are creating momentum for stocks and the currency.

1. Strong Export Growth Driven by Semiconductors

One of the biggest forces behind the bullish outlook is the surge in exports, especially in the semiconductor industry. South Korea’s exports climbed sharply at the start of 2026, with chips making up a large portion of total shipments and helping produce a sizable trade surplus. This growth has strengthened the country’s external position and boosted confidence in corporate earnings.

2. A More Hawkish Central Bank

Another reason for optimism is the shift in monetary policy expectations from the Bank of Korea. The central bank has raised its growth outlook and signaled that additional interest rate cuts are unlikely. Markets are even starting to anticipate rate increases, which could support the Korean won by narrowing the interest-rate gap with the United States.

3. Government Measures Supporting the Currency

Policy actions from the South Korean government are also playing a role. Officials have taken steps to strengthen the currency and financial markets, including changes to how large institutional investors allocate funds and programs designed to attract capital inflows. These initiatives are expected to reduce demand for U.S. dollars and increase investment into domestic assets.

4. Capital Inflows and Structural Market Support

Another key factor is the expected increase in foreign investment. Analysts anticipate significant inflows as global investors allocate funds into South Korean markets, partly due to upcoming index inclusions and supportive policy frameworks. These developments could provide additional demand for both Korean bonds and equities.

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✅ Summary:
According to Bank of America’s analysis, South Korea’s market strength in 2026 is being supported by robust semiconductor exports, shifting monetary policy expectations, proactive government measures, and increasing global investment flows. Together, these factors could help sustain the country’s ongoing market rally. 

Swedish Krona News: UBS Warning

The currency has gained roughly 4% on a trade-weighted basis since November 2025, pushing the EUR/SEK exchange rate toward multi-year lows.

According to the bank’s latest report, strategists expect EUR/SEK to rebound toward 10.80 in the short term before resuming its broader downward trend. While strong domestic growth and favorable global conditions continue to support the krona, Sweden’s central bank, Sveriges Riksbank, has expressed concerns that the currency’s strength could weigh on already weak inflation.

UBS notes that the krona’s recent gains have been driven by both external and internal factors, including a global economic recovery, looser financial conditions, and rising European defense spending. These trends have boosted new orders and overall business activity in Sweden.

However, the bank cautions that investor positioning has become increasingly skewed toward long SEK positions. With EUR/SEK already trading below levels suggested by interest rate differentials, UBS sees limited upside for the krona in the near term despite its strong fundamentals.

Looking ahead, UBS projects EUR/SEK will end 2026 around 10.50, with risks tilted to the downside. The bank recommends waiting for a move closer to 10.80 before initiating short positions, or considering selling rallies above 10.90.

The Dollar Is Losing Credibility: Why Central Banks Are Racing to Hoard Gold

 

Central banks around the world are quietly preparing for financial turbulence — and their weapon of choice is gold.

Not long after a plane carrying millions of dollars’ worth of bullion took off from Switzerland, Serbian officials received a panicked call: the gold had been left behind on the runway. Perishable goods had been prioritized over precious metal. It was an expensive lesson — and a sign of just how desperate countries have become to secure their reserves.

Serbia is far from alone.

From Asia to Europe, central banks are rapidly building massive gold stockpiles, reversing decades of conventional financial thinking. As geopolitical tensions rise and confidence in the US dollar weakens, gold prices have surged to record levels — recently topping $4,600 an ounce — with some analysts predicting $5,000 soon.

At the heart of the rush is a growing fear: the global financial system is becoming unstable.

Over the past decade, gold’s share of central bank reserves has doubled, reaching its highest level in nearly 30 years. Today, more than a quarter of official reserves are held in bullion. At the same time, countries are cutting their exposure to the dollar and bringing gold stored overseas back home.

“We’ve moved from global stability to geopolitical chaos,” says economist Raphaël Gallardo. “Many governments now believe their dollar-based reserves can be frozen or seized overnight. The dollar is losing its role as the world’s anchor currency.”

For decades, the US dollar dominated global finance. It powered trade, stabilized currencies, and served as the backbone of central bank reserves. Even after the gold standard ended in the 1970s, the dollar remained supreme.

But that dominance is slowly eroding.

Political pressure on the Federal Reserve, rising US debt, and Washington’s growing use of financial sanctions — including freezing Russia’s reserves after the Ukraine invasion — have shaken confidence. Countries are now questioning whether their money is truly safe in American-controlled systems.

While the dollar still accounts for about 57% of global reserves, down from 66% ten years ago, there is no clear replacement. The euro, yen, pound, and yuan all lack the scale and trust to fully take its place.

So central banks are turning to something older than any modern currency: gold.

“Gold is nobody’s liability,” Gallardo explains. “It isn’t tied to any government. When trust disappears, people return to it.”

In June last year, gold overtook the euro to become the world’s second-largest reserve asset after the dollar. A survey by Invesco found that half of central banks plan to buy more gold, while two-thirds want to bring foreign-held reserves back to domestic vaults.

This repatriation trend is accelerating.

For decades, countries stored gold in financial hubs like London, New York, and Switzerland. The Bank of England alone holds around 400,000 bars worth over $500 billion. But recent political disputes have exposed the risks.

Venezuela, for example, cannot access $2 billion worth of gold held in London due to diplomatic tensions. Russia’s reserves in Europe remain frozen. These cases have sent shockwaves through central banks worldwide.

As a result, nations like India, Hungary, Turkey, Poland, and Germany have moved tons of gold back home. China has gone even further, stockpiling more than 2,000 tonnes in its drive to challenge US financial dominance.

Meanwhile, the United States still claims the world’s largest reserve at over 8,000 tonnes — although Fort Knox hasn’t been officially audited since 1953.

Not everyone is buying.

The UK famously sold much of its gold in the early 2000s at historically low prices — a move now widely criticized. Some economists also argue that cryptocurrencies could one day compete with gold and fiat currencies as reserve assets.

So far, central banks remain skeptical. Crypto is volatile, untested at scale, and often still tied to the dollar.

For now, gold remains the ultimate fallback.

“Whenever political uncertainty rises, central banks turn to gold,” says Invesco’s Rod Ringrow. “It’s the last line of defense if paper money fails.”

Despite gold’s rise, experts say the dollar isn’t collapsing — yet.

“There’s no real successor,” says economist Jonathan Fortun. “If we ever end up settling trade in gold again, the dollar won’t be the main problem. We’ll already be in serious trouble.”

But the message from central banks is clear:

In a world of sanctions, debt, and geopolitical rivalry, trust is fading. And when trust disappears, nations don’t turn to promises — they turn to metal.

Australian Dollar-3 Year High Along Gold Prices

 

SYDNEY — The Australian dollar just hit its strongest level in three years, riding a blistering surge in gold prices and growing speculation that the Reserve Bank of Australia is about to pull the trigger on a rate hike. The rally spilled across the Tasman, lifting the New Zealand dollar to a seven-month high.

The Aussie ripped as high as $0.7050, extending its winning streak to eight straight sessions, fueled by a relentless commodities boom. Gold — one of Australia’s most critical exports — smashed through yet another record, rocketing toward $5,600 an ounce.

Meanwhile, the US dollar found only temporary relief after Treasury Secretary Scott Bessent reaffirmed Washington’s “strong dollar” stance, following President Donald Trump’s dismissal of the recent greenback slide. A slightly hawkish Federal Reserve also offered support, holding rates steady and pointing to a “solid” US economy — pushing expectations for the next rate cut back to June.

Still, the Antipodeans outperformed.

Markets are now laser-focused on next week’s RBA decision. All four major Australian banks are calling for a quarter-point rate hike, after inflation once again surprised to the upside. Only a handful of holdouts — including Goldman Sachs and Deutsche Bank — remain unconvinced.

Goldman’s chief economist Andrew Boak cautioned that the 0.9% quarterly jump in trimmed mean inflation may not be enough to justify a rapid pivot from easing to tightening, calling the February decision a “very close call.” Still, he acknowledged the RBA’s track record of blindsiding markets.

If the RBA hikes next Tuesday, it would become the first non-Japan G10 central bank to raise rates during the current global easing cycle — a potentially seismic shift for currency markets.

Profit-taking briefly cooled the Aussie in Asian trade, slipping 0.2% to $0.7025, as mixed earnings from US tech giants dented equity sentiment.

Across the Tasman Sea, the kiwi dollar also pulled back 0.2% to $0.6050 after tagging a seven-month high at $0.6070. Key resistance sits near $0.6060 and $0.6120.

The Reserve Bank of New Zealand meets on February 18 and is widely expected to hold rates at 2.25%, though traders are increasingly betting the next move will be up, likely later this year.

Bottom line: commodities are on fire, rate-hike expectations are building, and the Aussie dollar is suddenly one of the hottest currencies on the planet.

Iran on the Brink: Currency Collapse, Soaring Inflation, and Nationwide Unrest

Tehran is in turmoil. Iran is facing one of its most severe economic crises in decades: the national currency is in freefall, inflation is skyrocketing, and protests are spreading across the country. Social media is buzzing with claims that the Iranian rial is now “worth zero” against the US dollar—but the truth, while more nuanced, is far more alarming.

Iranian Rial Hits All-Time Lows
Since late 2025, the rial has plummeted, especially in the parallel market—the real measure of supply and demand. By early January 2026, the exchange rate hit an unprecedented 1.4–1.5 million rials per dollar, the weakest level in history.

Some currency apps even show the rial as “$0.00”. This doesn’t mean the currency is literally worthless—it’s a glitch caused by extreme depreciation—but it perfectly captures the collapse of confidence in Iran’s economy.

Inflation Above 40% Is Crushing Iranians
The falling rial has sent prices into overdrive:

• Food costs for staples like bread, rice, and cooking oil are skyrocketing.

• Healthcare and imports are now nearly unaffordable.

• Annual inflation sits above 40%, eroding household incomes and pushing many middle-class families toward poverty.

Why the Rial Is Freefalling
Experts say a perfect storm of pressures is driving the collapse:

• International sanctions block access to foreign currency and global markets.

• Chronic fiscal deficits are financed by printing money, fuelling inflation.

• Public confidence in government monetary policy is eroding fast.

• Geopolitical tensions discourage investment and accelerate capital flight.

The result? A vicious cycle: currency weakness → inflation → more currency weakness.

Economic Anguish Sparks Protests
The streets of Tehran, Isfahan, Shiraz, and Mashhad have erupted with protests since December 2025. What started as anger over currency losses and rising prices has grown into widespread discontent with the government’s economic management.

Authorities have responded with internet blackouts and heightened security, prompting international concern over human rights.

Global Consequences
Iran’s crisis isn’t just a domestic problem:

• As a major oil producer, instability in Iran can ripple through global energy markets.

• It’s a stark example of how sanctions, inflation, and monetary mismanagement can spiral into near-hyperinflation.

• Emerging economies can see Iran as a cautionary tale of how quickly currency collapse can destabilize society.

Bottom Line
Iran’s rial may not technically be zero—but its historic lows, combined with 40%+ inflation and growing civil unrest, paint a chilling picture. Once public trust in a currency is lost, recovery is nearly impossible.

Iran’s crisis is a wake-up call: monetary collapse can swiftly evolve into political, social, and humanitarian upheaval—and the world is watching.

US Dollar Slips as Gold Takes Center Stage in Global Reserves

 

The US dollar’s dominance in global foreign exchange reserves is fading fast. New data shows the dollar now accounts for roughly 40% of total global reserves, the lowest level in at least two decades.

Why the Dollar Is Losing Ground

Over the past ten years, central banks have steadily reduced their reliance on the US dollar. In that period alone, the dollar’s share has fallen by nearly 18 percentage points.

This trend reflects rising concerns about US debt, geopolitical tensions, sanctions risk, and long-term currency stability. Instead of concentrating reserves in a single currency, many countries are choosing to diversify.

Gold Is the Big Winner

As the dollar’s share declines, gold has emerged as the primary beneficiary. Gold now represents about 28% of global reserves, its highest level since the early 1990s.

Remarkably, gold now makes up a larger share of reserves than the euro, Japanese yen, and British pound combined. This signals a clear shift toward assets that are not tied to any one government or political system.

Why Central Banks Are Stockpiling Gold

Gold is viewed as a safe haven during periods of uncertainty. It carries no credit risk, cannot be frozen through sanctions, and tends to hold its value during inflation or currency weakness.

With geopolitical risks rising and financial systems under strain, central banks see gold as a dependable store of value.

Impact on Markets

This shift is already showing up in price action.

• Gold surged nearly 65% in 2025, its biggest annual gain since 1979.

• The US dollar index fell about 9.4%, marking its weakest year in eight years.

What It Means Going Forward

While the US dollar remains the world’s primary reserve currency, its dominance is clearly eroding. The growing role of gold highlights a long-term move toward safety, diversification, and reduced political risk.

If current trends continue, gold is likely to remain a core pillar of global reserves for years to come.

Key Takeaways

• US dollar share of global reserves: ~40%

• Gold share of global reserves: ~28% (highest since the 1990s)

• Gold now exceeds euro, yen, and pound combined in reserves

• Gold prices jumped 65% in 2025

• Dollar index dropped 9.4% in 2025

BOJ Signals Further Rate Hikes as Japan Advances Beyond Deflation

Jan 05 2026

Summary:
Bank of Japan Governor Kazuo Ueda reiterated that the central bank is prepared to raise interest rates further if economic and inflation trends continue as anticipated, reinforcing Japan’s decisive shift away from ultra-loose monetary policy.

BOJ Confirms Hawkish Turn Amid Sustained Inflation

In a landmark departure from decades of aggressive monetary accommodation, Bank of Japan (BOJ) Governor Kazuo Ueda said on Monday that the central bank will continue tightening policy provided economic and price conditions remain on track. His remarks underscore the BOJ’s determination to unwind long-standing stimulus measures as Japan transitions toward a post-deflationary economy.

Addressing a banking industry forum, Ueda noted that Japan’s economy is experiencing a moderate recovery in 2025 despite global headwinds, including elevated U.S. tariffs. He emphasized that wage growth and consumer prices are expected to rise in tandem, a development the BOJ views as structurally sustainable rather than temporary. This alignment supports the case for gradually reducing monetary support.

Policy Rate Reaches Highest Level in Three Decades

The BOJ’s December rate hike lifted its policy rate to 0.75%, the highest level since the mid-1990s. While modest by international standards, the move marks a significant break from the near-zero and negative rates that defined Japan’s post-asset-bubble era. Despite this shift, real interest rates remain deeply negative, with inflation running above the BOJ’s 2% target for nearly four years.

Persistent price pressures—driven in part by a weaker yen and rising import costs—have reinforced the BOJ’s confidence in policy normalization. Rather than pursuing rapid tightening, however, the central bank continues to stress a cautious, data-dependent approach anchored in sustained wage growth and stable inflation expectations.

Weak Yen Complicates Policy Outlook

The yen weakened further on Monday, falling to around 157.25 per dollar, its lowest level since late December. While a softer currency boosts import prices and supports inflation, it also erodes household purchasing power and complicates efforts to raise real borrowing costs.

This delicate balance will be a key focus at the BOJ’s January 22–23 policy meeting, where the updated quarterly outlook is expected to shed more light on the bank’s inflation forecast and future rate path.

Government Backs Shift Toward Growth

Finance Minister Satsuki Katayama echoed the BOJ’s message, describing Japan’s broader transition from deflationary stagnation to a growth-oriented economic model. Her comments highlighted rare alignment between fiscal and monetary authorities, framing rate hikes as part of a coordinated strategy to normalize the economy rather than restrict growth.

The success of this shift will hinge on whether real wages keep pace with inflation and whether private investment strengthens as stimulus is gradually withdrawn.

Markets Price in Tighter Conditions

Financial markets have already begun adjusting. The yield on Japan’s 10-year government bond briefly climbed to 2.125% on Monday, its highest level in 27 years, reflecting growing confidence in the BOJ’s commitment to policy normalization.

While rising yields pose challenges for Japan’s heavily indebted public sector, they could benefit banks and insurers by steepening yield curves after years of compressed margins.

Governor Ueda’s comments reinforce the BOJ’s message: interest rates will continue to rise if inflation and wage growth prove durable. Although Japan appears to be emerging from decades of deflation, the central bank faces the complex task of rebuilding policy space while safeguarding financial stability. The upcoming January meeting will be pivotal in clarifying how the BOJ intends to manage this transition.

Japanese Yen Debasement News

 

The Japanese yen is now rivaling the Turkish lira as the weakest major currency in the world.

Despite the Bank of Japan raising its policy rate this week, the yen continued to slide. That may look contradictory at first, but in reality there is no mystery. What matters for the yen are longer-term interest rates, and those rates remain far too low given Japan’s enormous public debt. As long as this imbalance persists, the yen’s debasement will continue.

The chart above illustrates real effective exchange rates across major economies. These measures capture a currency’s true strength against trading partners, adjusting for differences in inflation. The shaded area shows the range between the strongest and weakest currencies. For years, the Turkish lira (blue line) has been the weakest globally. The Japanese yen (black line) has now fallen to nearly the same level.

So why is the yen weakening even after a rate hike? The answer lies in long-term yields. The yen is driven not by short-term policy rates, but by longer-dated interest rates, which remain artificially suppressed. This is evident in the chart plotting 30-year government bond yields against public debt across advanced economies. Germany’s 30-year yield sits above Japan’s, despite Germany having vastly lower public debt. The uncomfortable reality is that Japan’s yields are still being held down, and as long as that continues, the yen will keep losing value.

As the chart shows, the Bank of Japan remains a major buyer of government bonds on a gross basis, preventing yields from rising to levels that would prevail in a free market. Without this intervention, Japan’s long-term yields would be much higher—likely triggering a debt crisis. Given the scale of Japan’s debt burden, the country faces a stark choice: a debt crisis or ongoing currency debasement.

There is, in theory, a third path. Japan could pursue fiscal consolidation to reduce its debt. The government is asset-rich, which is why net debt stands around 130 percent of GDP, well below gross debt of roughly 240 percent. Selling financial assets and privatizing state-owned enterprises could meaningfully reduce debt. However, the political consensus for such measures does not yet exist. Until it does, the yen’s debasement is likely to deepen further.

A List Of 10 Free Backtesting Options

 MetaTrader 4/5 (MT4/MT5): These are popular trading platforms that offer built-in backtesting functionalities. Many brokers provide these platforms, and they often come with historical data for backtesting.

Forex Tester: While Forex Tester isn't entirely free, it does offer a free demo version with limited features. This allows you to test its capabilities before purchasing the full version.

TradingView: TradingView is a widely-used platform that provides a powerful charting tool. They offer some backtesting capabilities, and you can use it for free with limitations, or subscribe for more advanced features.

ProRealTime: This platform offers a free version with limited features, including backtesting capabilities. It's known for its advanced charting tools.

ZuluTrade: ZuluTrade is a social trading platform that allows you to follow and copy the trades of professional traders. It also offers a basic backtesting feature.

QuantConnect: QuantConnect is a platform that provides a cloud-based algorithmic trading engine. They offer a free community version which includes backtesting capabilities.

Myfxbook: While primarily known for its social trading network, Myfxbook also provides some basic backtesting functionality.

TradingSim: This platform offers a free version with limited features. It provides a simulation environment for backtesting trading strategies.

NinjaTrader: NinjaTrader provides a free version of their platform that includes basic backtesting features. It's more advanced than some other free options but still has limitations.

Python with Backtrader or Zipline: If you have some programming knowledge, you can use Python with libraries like Backtrader or Zipline for backtesting. These libraries are open-source and offer a lot of flexibility.

Forex God- What Does It Mean?

What is a forex god? What is the meaning of it? Who is a Forex God and how you can become one?

A "Forex God" is an informal term referring to exceptionally successful and renowned forex traders like George Soros, Bruce Kovner, and Paul Tudor Jones. These individuals have demonstrated exceptional skills and profitability in the forex markets. 

Many traders aspire to attain the status of a Forex God, which signifies extraordinary achievement and success in Forex trading. In essence, a Forex God is a trader who has reached remarkable heights of success in the forex market.

Who are the generally seen as the top 10 traders in the forex market? What are these Forex Gods net worth?

Here is a list of the 10 most well-known and successful forex traders up to last year. Please note that the rankings and reputations of traders can change over time, and there may be new influential figures in the forex trading world.

1.George Soros: George Soros is perhaps one of the most famous forex traders of all time. He is known for "breaking the Bank of England" in 1992 when he shorted the British Pound and made over a billion dollars in profit.

2.Paul Tudor Jones: Jones is a prominent hedge fund manager and trader. He is known for predicting the 1987 market crash and has been successful in various financial markets, including forex.

3.Stanley Druckenmiller: Druckenmiller is another legendary hedge fund manager and trader. He was George Soros's lead portfolio manager at the Quantum Fund and is known for his exceptional risk management skills.

4.Bruce Kovner: Kovner founded Caxton Associates, a highly successful hedge fund. He is known for his disciplined trading style and his ability to adapt to changing market conditions.

5.Bill Lipschutz: Lipschutz is a former currency trader at Salomon Brothers and is known for turning a $12,000 inheritance into millions by trading forex.

6.Andrew Krieger: Krieger is known for his large short position on the New Zealand dollar in 1987, which led to significant profits.

7.John R. Taylor Jr.: Taylor is known for creating the Taylor Trading Technique, a method for trading in the forex market.

8.Joe Lewis: Lewis is a British businessman and investor known for his currency trading exploits. He's also a prominent figure in the world of professional golf.

9.Michael Marcus: Marcus is known for turning a $30,000 account into over $80 million through trading. You can find him being featured in the book "Market Wizards" by Jack D. Schwager.

10.Richard Dennis: While he's more known for his success in commodities trading, Dennis was also involved in forex trading. He was a key figure in the famous "Turtle Traders" experiment.

SO now you know who the top traders are. The next part will explore how they became successful and what are some of the common traits or characteristics that they all posses? 

Here are the top 14 we've identified

1.Discipline: Successful traders have the discipline to stick to their trading plans and strategies, even in the face of emotional or impulsive decisions.

2.Risk Management Skills: They understand the importance of managing risk and employ strategies like setting stop-loss orders to limit potential losses.

3.Patience: They wait for the right opportunities to present themselves rather than forcing trades when conditions aren't favorable.

4.Continuous Learning: They are always seeking to expand their knowledge of the markets, economic factors, and trading techniques. They stay updated with current events and market trends.

5.Emotional Control: They can keep their emotions in check, avoiding impulsive decisions that can lead to losses. They don't allow their emotions like greed or fear control their actions.

6.Adaptability: Successful traders can adjust their strategies in response to changing market conditions. They know that things change all the time and nothing is 100% guaranteed and understand what worked yesterday may not work tomorrow.

7.Analytical Skills: They have a strong ability to analyze market data, charts, and technical indicators to make informed trading decisions.

8.Confidence: Successful traders have confidence in their strategies, but they are not overconfident or reckless. They understand that losses are part of the trading process.

9.Long-Term Perspective: They don't get discouraged by short-term losses and are focused on achieving consistent, long-term profitability.

10.Goal Setting: They set clear, realistic goals for their trading activities. They make those goals very specific, but also measurable, achievable, relevant.

11.Adherence to Trading Plan: They have a well-defined trading plan that outlines entry and exit points, risk management strategies, and profit targets. They stick to this plan religiously.

12.Ability to Cut Losses: They are not afraid to admit when a trade is not going their way and are willing to cut their losses before they escalate.

13.Financial Discipline: They manage their trading capital responsibly and avoid overleveraging, which can lead to significant losses.

14.Humble and Open-Minded: They understand that no one can predict the market with certainty, and they are open to learning from both successes and failures.

It's important to note that while these traits are common among successful traders, there is no one-size-fits-all formula for success in forex trading. Each trader may emphasize different aspects of their trading style, and what works for one individual may not work for another. Additionally, success in trading also requires a certain degree of luck, as market conditions can be unpredictable.

In conclusion

You might have already decided that you want to learn how to do this or are interesting in finding out how to do this. If so the next article explores the exact step-by-step process you can take to right away to achieve success in Forex and become a Forex god yourself one day.

Forex Trading Systems For 2026

 

(Original article updated for 2026)

Looking back when I started trading back in 2015 in the world of forex there have been some things that have changed and some still remain the same. Below I'll go through 6 core strategies that I used to use and still do with many of them today. 

Every year is marked by significant economic events and market volatility, making it imperative for traders to employ a range of strategic approaches. Successful forex trading in this period demanded a combination of adaptability, analysis, and risk management. Here, we divee into some of the most effective forex trading strategies that dominated the landscape last year. 

1.Trend Following Strategy: Riding the waves of trends was a favored approach. Traders meticulously studied long-term and short-term trends using technical indicators such as moving averages and Relative Strength Index (RSI). By entering trades in the direction of the prevailing trend, traders aimed to capitalize on sustained price movements, often achieving impressive profits.

2.Breakout Strategy: The volatility in 2015 offered traders ample breakout opportunities. The strategy involved identifying key levels of support and resistance and waiting for a breakout above or below these levels. The breakout signaled a potential shift in market sentiment, leading to quick gains as price surged beyond established ranges.

3.Carry Trade Strategy: In a year characterized by divergent global monetary policies, the carry trade strategy gained traction. Traders leveraged the interest rate differential between two currencies to earn profits. They borrowed funds in a currency with a lower interest rate and invested in a currency offering a higher rate, pocketing the difference.

4.News Trading Strategy: With central banks around the world announcing significant policy changes and economic indicators creating market-moving events, news trading was a popular approach. Traders closely monitored economic calendars, reacting swiftly to news releases that often led to sudden price fluctuations.

5.Range Trading Strategy: The increased volatility also saw traders adopt range-bound strategies. They identified well-defined levels of support and resistance and executed trades when prices approached these boundaries. Profits were made as prices oscillated within the established range.

6.Diversification Strategy: Sensing the uncertainty in the markets, traders diversified their portfolios across various currency pairs. This strategy aimed to spread risk and capitalize on different currency dynamics, potentially offsetting losses in one trade with gains in another.

So 2015 was a year of both challenges and opportunities in forex trading. Traders navigated through the turbulent waters with a diverse set of strategies, adjusting their tactics to suit the evolving market conditions. Whether capitalizing on trends, breakouts, interest rate differentials, news events, or range-bound movements, the successful forex traders of 2015 demonstrated a keen ability to adapt and thrive in a constantly changing trading environment.

Forex trading setup with a 100% win rate so far

 

(video will play at bottom of page)

I've been watching The Transparent trader for several years now on Youtube. Out of all the wannabe's his channel is like a breath of fresh air. Furthermore I have back-tested several of his strategies and found that his back-tested were similar to mine.  In this video in which he says that this strategy was created back in Oct 2021 and has given him a 100 win-rate was only over 10 trades but still a promising start for further backtesting.   The strategy is based on using specific market conditions using a couple of ideas which were picked up from Larry Williams 

It doesn't trade very often in fact it's only made 10 trades. 

Firstly this strategy works on US Dollar Canadian Dollar on the daily chart and for the trade entries we're looking for three specific conditions: we're looking at trading day of the month so for this strategy we're only looking at trading day eight if it's trading day eight then we look to see is the close less than the close five bars ago or in this case five days ago if it is then we move on to number three and we're looking at the Williams percent are oscillator I have this set to 14 periods which is standard on most charting packages and we want to see that the oscillator is slightly oversold below 50 or below the midline. 

Once we see those three conditions then we buy the next bar on the open.  There are some examples shown in the video below. On the chart in just a second looking at the exits we have a stop loss of Pips it's just a fix pip stop and we're using our buy allow exit or our first profitable close but with a seven-day delay what that means is we have to be in the trade for a minimum of seven days and then after the seven days we look to see at the close if we're in profit if we are in profit then we take the profit and we exit the trade if we're not in profit then we stay in the trade so we're always in the trade of minimum of seven days now I actually run three optimizations when I was developing this strategy I optimized for the best trading day of the month and I actually optimized for the highest percent profitable you can see that in the original video then I optimized for the bailout exit with the seven-day delay 

I optimized that seven-day delay number and I found that for what I wanted seven works the best and then I optimized the stop loss and found that Pips worked very well too so let's have a look on the chart here's some trade examples the first one here we can see we don't know it's trading day eight but take for granted that it is trading day eight and we see that the close is lower than the close five bars ago and this is the Williams percentile oscillator yes it is oversold always certainly below the midline so we get in the trade and then we've held the trade for one two three four five six seven bars that seventh bar we were in profit so we exited on the open of the next bar another one here this close here was lower than the close five days ago 

it was trading day eight and the oscillator was below the midline and we've got our buy it out exit and the same on here so as normal with a lot of my strategies a really simple one to trade when I first developed the strategy I used data from to and that's what I called the in-sample data and you can see this in the original video and then I took the data from up to October which at the time was the most data I had and that was what I call the out of sample data the out of sample or that smaller period of data none of the optimizations which I've previously done were included using that data so any of the previous optimizations which I've done if they had been done correctly if the strategy was robust and the edge still existed 

I'd like to see the performance continuing in that smaller out of sample or most recent data set and as you see in the original video that was the case that the strategy did continue to perform in that few years of out of sample or unseen data but now it's July a few years extra so now we have a really big sample of out of sample data we have that original to October chunk but then we have from the date of creation or October right the way through to today which is July and that's what we're going to look at next I'm going to show you three separate strategy performance reports the first being the most recent data we have that completely unseen data from October to July then we're going to look at the fall out of sample from to July and then we look at the full data set from through to July. 

in this first workspace we're going to be looking at data from October to July if I scroll back we can see through the trades and we can see that the first trade is in October looking at the performance report we can say we've had a total of trades and we've got winners there's what the equity curve looks like in fact there's the close to close and you can clearly see that every trade there was a winner by the way I want to mention that I have included per trade of costs let's just go back to the total trade analysis and you'll see that we've got a massive average trade anyway of this is trading one full lot and those of you who've already noticed this is a a buy only or a long only strategy 

I want to just show you the actual the Buy and Hold chart and you can see that yes okay US Dollar Canadian Dollar has been in a bit of an uptrend but not perfectly and later on when we're looking at more data I'll continue to show you this Buy and Hold chart so you can see that we're not getting our Edge on the long side just because US Dollar Canadian Dollar has been going up over that years so the next workspace we're going to be looking at data again up until very recent which is July and starting trades in so the data we see here is the out of sample data which wasn't included when I done any of the first testing or the optimizations so looking at the performance report there's your Buy and Hold so you can see that US Dollar Canadian Dollar actually pretty much moves sideways over this period with some flat periods some down periods and some up periods there's the equity curve for our strategy close to close Equity curve looks like that and total trade analysis made trades out of those were winners which gives us win rate with a huge average trade dollars largest losing trade is still the same that's still our stop-loss value of Pips and let's just have a look at the Buy and Hold value and that's what the Buy and Hold return looks like that is purely just the price chart of US Dollar Canadian Dollar and you can see we've got really varying periods throughout that period of time 

so although it is a long only strategy it's worked even in the down periods so that's the updated performance report for that trading day of the month strategy for those of you who have been interested it's obviously been doing pretty well since I developed it but that's not typical of all my strategies when I develop a strategy I'll always include a watch period so after I've developed it I won't do anything I won't Trade It live and I'll watch it for a period of months sometimes three sometimes six months and then if it meets all the criteria which I want to trade live 

then I'll put it in my portfolio but not all my strategies do make it through that watch period but I'm pleased to say that a decent amount due hopefully this video has helped some of you guys out today and it's given you some ideas of how to use that trading day of the month technique when used correctly that trading day of the month technique isn't just curve fitting or overfitting and you can use it to produce profits well into the future which of course is our goal as Traders as I said earlier if you want to learn more about how I developed the strategy then please use the link and watch the earlier video so I hope you've enjoyed this video if you have then please give it a thumbs up and consider subscribing to