If you are tired of trading the pounds at this point, you are not the only one. Even on their computers they came in more. Reuters has published an interesting survey claiming that algorithmic traders who read news can not handle the huge volume of Brexit titles. For those who are not familiar, news algo traders are part of a wider penetration of the machines that replace people on trading exchanges. The logic here is that costs are reduced and speed is increased. The problem, however, is that Brexit creates too much noise and headlines. Reuters publishes over 400 articles on Brexit a day in recent weeks. Bloomberg apparently adds to this content by publishing the incredible 1,000 articles related to Brexit during some of those days.
Additionally, the complexity of Parliament also does not help the algae. The calming thing here is that even computers seem to be unable to cope with the bureaucracy in Westminster. There are no official data on the number of active algo traders, but Reuters claims that about 10% of the volume of currency trading is happening by robots. However, for Brexit it seems they are off.
So, with the excluded computers and some funds that stopped trading the pounds, the sterling is currently experiencing a low-volume trading environment. Looking at the daily chart, there is an expectation of material information to indicate the direction (I mean a real movement, not 50 touches and then returning). Sterling volumes for February were about $ 65 billion, and this is 35% lower than volumes before the 2016 referendum.
All this shows that more and more people (and machines) stay on the side and wait for Brexit to be resolved - one way or another. The best strategy seems to be to wait for a clear direction and then join. Of course, if you can grasp the direction as early as possible, the better. Do not ignore titles yet. Naturally, if you are not a robot and have not excluded you yet.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.