Richard Donchian, no longer with us, was the devisor of several trend-following systems, not least the Turtle Trading system, which is still with us.

Donchian channels are a measure of market volatility, much the same as Bollinger bands
and are about as simple as you can get:-
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If the Martingale system is a joke – then the anti-Martingale is a seriously bad joke. As risk-management it leaves something to be desired.

The anti-Martingale is exactly as the name suggests, the Martingale in reverse, and again it comes out of roulette ‘theory’ – any game where there’s roughly a 50/50 win/lose. Instead of doubling up on your lot size following a losing trade, you double on a successful trade. Continue the doubling and watch the money mount up.
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Here’s a forex market movement for our times:-

Despite forecasts for a depreciation of the Dollar, many economists are now saying that the negative housing data released from the United States yesterday may actually bolster the USD.

Let’s state the effect in the simplest possible terms.

Bad news for the US economy, lower jobs, lower GDP, leads to lack of confidence
Which leads to a rush towards safe haven currencies…
Which leads to buying USD – because USD is in itself, considered a safe-haven currency…
So bad US news leads to USD going up.

This rush to a safe haven, any safe haven, after every news announcement is creating some weird effects. It flies in the face of logic, well, simple logic anyway – and is a sign of the present dominance of USD

No, I don’t know of any name for this upsidedown, wrong-way-round, echo, reverb effect – but it certainly ought to have a name…
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There’s a fair amount written and spoken about volume analysis in forex trading, volume spread analysis, VSA, etc. but, in very simple terms, volumes can be a good indication of who’s doing the buying and selling – is it large volume professional money going into the market, or is it just the smaller traders twitching the currencies around a little at the moment?
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What of the rumors? Rumors that, faced with a currency dropping like a stone, a lot of previous policy statements are going to be junked and the United Kingdom might make a relatively rapid emergency dive into the Eurozone. ft.com doesn’t seem to carry the story/suggestion anywhere that I can see, presumably not dignifying it with any unmerited publicity.
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