Trading Update

In summary, another good trading session.  I focused on taking only valid setups.  This sounds so damn obvious but as I said in earlier posts, I have not been doing that.  This resulted in less trades, but also in less volatile results.

The day included a post-UK news trade on GBPJPY, followed the release of the Bank of England which showed a surprising 2-7 vote split on the interest rate hike.  

I took a trade on DAX30 early on – I quickly concluded that this was not a valid setup and went to close it immediately for a small loss.  

Finally, there were two EMA-based trades – the first on NZDUSD (a short) – price continued moving sideways for several hours before I finally closed the trade at scratch.  On FOMC days, it is of course much more likely that USD crosses will move sideways.  A second trade on EURJPY (also short) resulted in the week’s first full loss (1R).  I felt that I had entered at a good level on a valid setup, thus I did not move the stop.

I also closed out the long SPX500 (Trade #234) entered on Tuesday.  Recall it was up 1R at the end of Tuesday’s session.  After tightening the stop, price came very close to my stop, however it did not touch it – and even though there was another sharp-sell off in equities around 1pm [triggered by large futures sales in Eurostoxx and the DAX) my stop held, prior to the US market continuing its rally.  I closed out 1/2 at a level just above Tuesday’s high and set a limit order in front of daily and weekly pivot lines, anticipating there was a good chance of that level being hit prior to the release of the FOMC minutes.  I also tightened the stop further.  The limit was hit whilst I was busy getting my skating equipment ready.  That was a nice trade for a net win of 2R.

After three trading sessions, I am thus at 3W – 5L – 4BE – my net result is +1.44R.  The average return-risk ratio is 2.88.

I just missed out on short trades in GBPAUD and EURAUD in the New York session – price didn’t quite retrace to the entry levels I had wanted.  Shame, those would have both been solidly winning trades.  Next time.


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