Summary: This afternoon I took two winning short trades, both on the 5m timeframes, one on the DAX and one on GBPNZD. The net result was +1.88R across the two trades. I will try to post the charts for these on here later.
Am feeling rather tired today after a night on the drinks yesterday to celebrate a good friend’s birthday. I decided to stay in for the evening and do a bit more testing. I spent a lot of the day mulling over how to balance working hard on the EMA strategy (both testing and live) without closing the door on other potential strategies.
This trade went into my favour quickly and strongly and hit a target level I had entered at 9,328 (a few pips above a prior low). This was reached in just over 10 minutes. I managed the remaining half tightly. I noticed that the spread had widened to 5 points at one stage which I thought was very strange. it was then that i realised that I had opened a trade in the middle of Draghi Q&A portion of the ECB press conference (that’s terrible trade preparation!) – at this point I felt rather silly – and immediately closed the remaining portion at 9,317 – that’s good discipline! Of course, the DAX went to fall much much further 🙂
In any case I came out with a 1R profit.
On this trade, price went down as far as the 2.04 handle (nearly 100 pips in profit) but I let price go back to 2.0456 before closing it (that’s where the tightened stop had been).