It’s a bit after 11pm. I should already be asleep. I am not – thinking about fx is keeping me awake – so I figure I may as well get up and do some work on the ideas that are going through my head.
Review of the trading session
Today’s trading was mixed. I took short setups on EURJPY and EURUSD earlier in the morning between 7.30 and 9.00 am. A bearish crossover on the 15M timeframe had not occurred on either pair, but I was using the “retracement” option of the strategy parameters to justify entering the trades. The setups were still ok. However I was very slow to exit the trades, even when a bullish crossover occurred on both them. Thus rather than getting out with partial losses, I took full losses on both trades.
Something similar happened with the long SPX trade I took ahead of the Wall Street opening bell – a bullish crossover did occur there but I didn’t exit for a partial loss when a bearish cross occurred soon after. A bad point on taking this trade was that I had noted the SPX as an instrument I should be staying out of – because the short-term sentiment was mixed i.e. it had been trading sideways for the past 3-4 sessions.
The reason why I didn’t exit as I usual is because I was trying to implement some of the insights I took from the reviews I completed last week (see Thursday’s post here). However I have not yet finalized the way I am going to let those insights change my strategy. I need to get onto that quickly.
Around the same time as the SPX trade, I did take a 2nd attempt on the short EURUSD, as this had just completed a bearish cross. I shorted around 1.2939 with a stop of 18 pips, and no target – meaning that I would exit the trade once a bullish XO occurred – whenever that maybe. I left the trade open on leaving the office and went to play more raquetball with my wealthy friends.
Checking in on the trade around 9pm, it showed EURUSD trading around 1.2895 – a gain of 44 pips – or 2.44R – nearly enough to offset the losses from the other three trades. Nice. Let’s see where that one goes.
Administration & networking tasks
Over the weekend I worked on some networking tasks – with the aim of keeping in better contact with friends and colleagues in the trading and entertainment circles. I also brought my ForexTester application up to date on both my PC and laptop. WARNING – PRODUCT PLUG COMING UP! By the way, this software is something I highly recommend – for a once-off cost of US$199 it is well worth the investment, I have been using it since 2010 -it also comes with around 14 years of historical data on about a dozen fx pairs. Check it out here http://www.forextester.com/howtobuy.html