Confidence was pretty good at the beginning of this week, following a successful week just gone. We had seen the account go up to a nice and healthy £338.35. There isn’t much further to go before we can safely increase our trades from .50p per pip, to £1.00 per pip, and if the system continues to live up to its current form, the account should reach 4 figures around the end of March, maybe early April. Let’s now take a look through last week on the platform.
Mon 28 Feb: The signals were beginning to indicate a climb in the pair when I arrived at my desk, but the candlesticks were going the opposite way. At 07:30 I took a gamble, going for a quick scalp and went straight in on a short trade @ 1.6135, closing out @ 1.6110 prior to 08:00, netting myself 22 pips in the process.
As the signals were still indicating a rise, I watched and waited for an hour, once the pair broke back through 1.6125, I set an order to open @ 1.6135. I let this trade ride, as it touched 1.6180; I felt I had done enough for the day. By the time I got round to closing, it had dropped to 1.6175. A great start to the week, total net gain of 59 pips, all before 09:30 (I wish everyday could be like this!).
Tues 01 Mar: There was a decent move upwards early on in the morning, which I missed out on. Not due to oversleeping, but the signals were a little weak, plus I still wasn’t convinced the pair would go much higher. Not losing money is just as good as winning it. By 09:30 it looked as though the price had topped out.
Although the signals were still indicating a climb, I set a tentative order to open short @ 1.6280 with the intention of scalping 30 pips, so a profit limit was set at 1.6250. This was not going to be a classic “SAS Trade”. Around 12:30/45, I gave up waiting and closed the trade @ 1.6264, 16 pips to the good (13 net). Not a great trade, but any profit is a profit.
Wed 02 Mar: Early signals were again not giving much away, though the general movement overnight had been downward, and the pair was trading below the daily pivot. I decided to follow the signals and set a short order to open. After a short time, the signals were beginning to favour a move up, but I ignored them.
I decided to wait for the 09:30 news announcement, which turned out to be good for £. Sure enough there came a sharp spike upward, followed by a fall back to near enough the 09:30 level. I had still to be convinced that there was much further for the price to go up, even though my indicators were now telling me that it would more clearly. Foolishly I ignored them, moved my entry price up, got entered into the trade, and then had to eat humble pie as I was stopped out by 3 pips, again! This time though, I had put the stop at my extreme of my range at 50 pips. A big one to take on the chin.
I broke one of my Golden Rules after this. I dipped my toes right back in and opened another short trade. Yeah, I was chasing my losses. I don’t mind losing occasionally, it goes with the territory, nevertheless, 50 pips was a sore one to take. I re-entered at 1.6305, finally closing at 1.6275 and claiming back a net 27 pips. It was time to call it a day after that.
Thurs 03 Mar: The price on the pair had moved down overnight, this was backed up by the indicators. I entered a trade just after 07:30, going straight in at 1.6310. The Daily pivot today was at 1.6295, and I had calculated first support level to be around 1.6254. I had decided that 1.6260 would be a good initial target to aim for.
The inevitable happened, and the price turned around heading north again. After what happened yesterday, I decided to cut my losses, getting out of the trade @ 1.6320, a 10 pip loss. This turned out to be an act of cowardice on my part. I had set my stop @ 1.6350 – 40 pips away from entry, and the pair only rebounded to around 1.6335, leaving plenty of breathing space, before returning to its early morning direction. I took the plunge and went back in short, entering at the same level I had entered earlier 1.6310. This time I had set a profit limit @ 1.6260, and that was hit just after 11:30.
Because of my earlier anxiety, I had thrown 10 pips away. The initial rebound didn’t even threaten my stop loss. Even though I’m dry trading this system, my emotions took over! Probably because I want this system to succeed so much. Any way, it ended well with a profit of 37 pips net. Could have been 47, but there you go.
Fri 04 Mar: The Daily Pivot was @ 1.6286, and overnight the pair had mainly been trading just below that line, hugging it in fact. There was also a high impact news announcement due out @ 08:00, and I decided to wait for that outcome before making a decision.
The news wasn’t good for the £, so I set a short order @ 1.6275. The intention today was to nail a 20 – 30 pip profit. I set a profit limit @1.6225, but was prepared to end the trade prior to that if I felt I needed to. I did close the trade early @ 1.6245, with a net profit of 27 pips. Had I not had too much other work to do, I would have given it another 15 minutes or so, but I was happy with the fact I had reached my initial target.
In brief then, the week went well in terms of profit. However, I did screw up in the midweek. I went against the indicators on Wednesday and instead getting out of the trade and opening a new one early enough, I sat like a rabbit caught in the headlights and watched the trade hit my 50 pip stop loss. I did manage a little damage limitation, pulling some of that loss back, but I shouldn’t really have needed to.
The account has climbed to a healthy £389.85, which means that I should soon be able to begin trading with £1.00 per pip instead of .50p. Looking forward to seeing the profits accelerate from then on.
From next week, I will be posting my thoughts and actions on this blog daily instead of weekly. I want to keep the information in bite size portions, as opposed to a whole roast dinner. As ever, thank you for looking in, and stay happy.
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