6/12 – Monday’s trading session review

reviewFollowing the Italian Referendum on Sunday there were some good sized moves in the Euro currency pairs and also in the European stockmarkets on Monday.  4 out of my 5 trades yesterday were mean-reversion trades in which I was betting on the Euro reversing its climb which didn’t happen!

In any case, I thought I share my notes from my review of yesterday’s trading session.  My review notes are not as thorough as those of Adey or  auh-trader – but do check out their reviews – they are quite something!

I make notes like this on a daily basis and then, at the end of each week, convert them into a small list of action points for the next week.

As I have mentioned on the blog, I am currently trading two different strategies – a trend-following one based on the 1-hour charts, and a mean-reversion strategy mainly based on 5-minute and 15-minute charts.

Reversal Trades

  • One winning trade on DAX (using reduced position size), losing trades on three EUR crosses
  • Clearly this wasn’t the greatest daily performance – I am just going to try to spot one obvious mistake rather than analyse everything to the n-th degree (80/20 approach).  The most obvious issue was the first trade – the short on EURGBP – why?
    • there was no clear level and congruence across relevant markets (i.e. other EUR crosses) did not look supportive.  At the time the actual reversal pattern itself looked reasonable.
    • I could have avoided this by sticking to my checklist more strictly.  In other words, there is a fairly ‘easy’ solution.
  • I did try to short the Euro two more times, once at 9am (EURJPY) and once at 10am (EURUD) – both times it didn’t work – but managed to keep the total loss from these two trades to 1.1R (rather than 2R) – which was good trade management
    • On both those trades there were key levels at play, and I had checked for congruence across the EUR rates, and the reversal patterns were better than on EURGBP – thus the odds for the trades were better
  • Loss of 1.47R

Trend-Following

  • One losing trade on Oil but was able to tighten the stop
  • The good thing here was the stop tightening which shaved the loss from 1R to 0.5R.
  • The downside here was my anxiousness to put on a trade.  The setup was actually ok – it was not the best one because it was not a standard setup in that price had not bounced right from the EMA10/20.  And there was good technical justification for doing that – $52 handle turning from resistance into support. However, all in all, I think the trade shows that I was keen to trade and ‘forced’ a setup to some degree.
  • Still reasonable trading overall, but could have been better still.
  • Loss of 0.5R

 

 

This entry was posted in Reversals Strategy, Trend-Following Strategy. Bookmark the permalink.

4 Responses to 6/12 – Monday’s trading session review

  1. David Eppel says:

    why don’t you trade options if you like forex? You have time on your side and you can just trade volatility. Directional trading in the long term is rarely viable-

    Liked by 1 person

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