S3 trade – GBPCHF – it met all the requirements of the strategy – the only aspect that I am uneasy about is not waiting for a retracement/bearish PA on the 15M chart – if I did that, then I would either get a better entry or find out that price is not actually to fall after all. Entering right away, without a retracement plays to my good feeling of being in the market with an open position. And it’s tempting to hop onto the trend. Which approach is more likely to make me a more profitable FX trader in the long run? Maybe after entering a really large number of S3 trades, I will get a feeling of when price will move right away (without a retracement), and when I have to wait. In order to be in the position to potentially be able to do that, I have to survive first! You know what that means! My trade was in profit for a little bit, so I changed the stop to BE, and came out at scratch. Well done – that was disciplined. Now I can wait for a retracement and bearish price action.
The opportunity to sell came a short time later – the pair did retrace to 4804 before putting in a strong bearish candle closing at 4785. I then managed to short at 4790. Although this is selling 5 pips lower than my initial sale, I felt happy because now the S3 setup met all requirements as well as me waiting for a retracement and bearish PA, as my strategy document says I should.
Final Result: -0.2R