Hello, welcome to this weeks’ review of The SAS Trading System.
It’s been a while since GBP/USD has had an extended run on a downturn, over a year in fact when you look at the weekly chart. Could this be the beginning of a better run for the Dollar against the Pound. To confirm that as the case, I would be looking for the price to break below 1.6000.
Not that that really affects me anyway. As a scalper looking to take an average 25/30 pips per trade, all I need to see is movement, and there has been plenty of that recently. You may notice that I missed out on phenomenal profits on Wednesday. I could have actually broken my record of 177 pips in a day by a long way here. A combination of giving in too soon (my lack of patience setting in again), and having to be out for the opening of the US market getting the better of me here. Not to worry though, I’m sure there will be many other days like that to come.
Incidentally, I have been taking a good look at another system Called Forex Trading Made E-z you may want to take a look here.
Let’s take a look at how things have been in the past week, commencing Mon 09 May. We start the week on +380 pips gained from previous 2 weeks. Trading is at £1 per point.
09/05/11,
A.M: GBP/USD: Day off.
EUR/USD: Day off.
P.M: Day off
Running total for week = 0 pips.
10/05/11,
A.M: GBP/USD: Initially unsure @ 06:45, indicators pointing to a short trade. Pair trading just above DPP for a while. Decided to follow signals and set order to open @ 1.6360 just after 08:15, looking to bag 30 pips, the limit was set to 1.6330. Happily, this came off almost instantly. I had been checking EUR/USD chart, and when I looked back at GBP/USD chart 5 min’s later, the trade was done and dusted. I was fortunate here, however, as the price hit a low of 1.6325 before rebounding and climbing to hit what would’ve been my stop loss at 1.6385.
EUR/USD: As with above here. Although the signals showed a reverse of early fall by 08:00 on M5 chart, that hadn’t yet happened on M15. I felt that it may still come down, as the price had been way below the DPP. I decided to set a short order to open @ 1.4300, looking to 1.4270 as my target, 1.4325 was my stop loss. Once again, good fortune stepped in to help me out here. The price hit a low of 1.4303 (3 pips short of tripping my trade) before turning back up, making a good 70 pip gain. I cancelled my order once the price broke 1.4330.
P.M: No further trading today. Gone fishing sign went up.
Running total for week = +30 pips.
11/05/11,
A.M: EUR/USD: No trade here. Signals were indicating a short position, but I decided to just stick with GBP/USD.
GBP/USD: Signals were indicating a short trade, and price was below DPP. I decided to wait a while at first as Frankfurt was just opening, and candlesticks were going in opposite direction. I eventually set an order to open short @ 1.6360, this was triggered after 07:45 and fell as low as 1.6353 before another rebound took it into negative territory. I did have a chance to close out positively around 08:20, but waited to see which way it was going to go. By 09:00 the MA dynamics had changed and I slunk out with my tail between my legs, closing out manually @ 1.6380 and 20 pips down. It could have been worse though, as the price well and truly broke through the point I had my stop loss set @ 1.6395, so I actually saved myself 15 pips. I knew I was beaten today and called it a day. The annoying thing was, if I had gone with EUR/USD too, I would have made 25 pips and that would have left me 5 pips to the good. Ah well, you win some, you lose some, but we’re still in positive territory for the week.
P.M: No further trading today, had to be out for an appointment.
Running total for week = +10 pips.
12/05/11,
A.M: GBP/USD: Indicator dynamics were changing over to indicate a short trade as I logged on. I set an order to open @ 1.6340, which auto closed @ 1.6310 for a 30 pip gain prior to 08:00. I didn’t need to be anywhere this morning, so I sat & waited for financial data release @ 09:30, which wasn’t too good for the £. I entered a short trade @ 1.6295 just after 09:30, no limit set on it. I was hoping for at least another 30 pips. But over 1 hour later, there wasn’t much difference. I had decided that I was going fishing again a little earlier, so I closed the trade with an 8 pip profit, 38 pips to the good so far.
EUR/USD: Indicator dynamics were changing here too, but it didn’t seem as certain as GBP/USD, so I sat on this one while GBP was running. At 09:30 I had a look at M5 chart and decided that it would be ok to enter a short trade here too. I entered @ 1.4190, but impatience, and the urge to go fishing was too strong. I closed out here @ 1.4165 with a 25 pip gain. Yes, I could have set a limit and let it play out making a 50 pip gain, but there’ll be other occasions I can do that. This morning then, between both pairs I have made 63 pips. Come on – you have to be happy with that huh.
P.M: No further trading today.
Running total for the week = +73 pips.
13/05/11,
A.M: GBP/USD: Pre-empted the signals here, although the price was below DPP, I entered a long trade around 06:35 @1.6260, looking for 30 pips. Twice it touched 25 pips before falling back. On the second occasion of it falling back, I decided to quit, getting out just after 08:00 @ 1.6262 for a 2 pip gain. Should really have taken the 20/25 pips, but there you go. Had I been going out somewhere, the target would have been hit.
EUR/USD: Pre-empted the sig’s again here. This one worked out for me. Price was trading above DPP, and there had been some good economic data coming out of Europe which helped it along. I entered long around 06:50 @1.4235, again looking for 30 pips, and that was auto completed by 07:05. As I had bombed out on GBP/USD, and this pair appeared to be on a run, I couldn’t resist getting another trade on. Everything was still looking right, so I entered a long trade @ 1.4260, letting that one run to 1.4300, closing that out just prior to 08:45 with 40 pips in the bag. That done it for me, I didn’t wish to tempt fate, and I was 72 pips to the good for the day. Let’s not be greedy huh!
P.M: I do not usually work after completing morning trades on Fridays. It’s fun time from then on.
Running total for the week = +145 pips.
Cumulative total* = +525 pips.
Here’s hoping next week brings more of the same, or better! Have a good weekend and good fortune on the trading platform next week, until then, ciao for now.
* Since resumption of this weekly blog, trading week beginning 26 April 2011.
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