It was an excellent week this week on the markets. My usual 4 hour trading strategy threw up two profitable trades on the USD/JPY and my 5 minute trading strategy is coming along nicely, although it still needs a bit of tweaking.

The GBP/USD threw up a few short crossovers (EMA (5) crossing the EMA (20) on the 4 hour chart) but the trouble was the price didn't retrace back enough for me to get a good entry either time, but luckily there were opportunities to trade the USD/JPY.

This pair has been in a nice upwards trend since the start of the April, so I was only looking for long positions. The first opportunity to enter a position came when we had a positive crossover on Wednesday. I went long at 104.17 and closed half the position at 104.69, moving my stop to break-even and letting the other half run, which unfortunately was subsequently triggered as it turned out to be a false move upwards.

However after reversing back downwards, there was another crossover on Thursday. This move turned out to have a lot more momentum and after entering at 104.15 I closed half at 104.75 and let the other half run. This position is still open and I've placed my new stop loss at 105.00 (with a target price of 106.00).

So those were two very profitable trades, but my short-term trading strategy is also coming along nicely as well. I only trade this strategy between 8.00 and 9.00 UK time as it isn't as effective at other times of the day.

Anyway there were 7 positions taken overall on the GBP/USD, EUR/USD and the FTSE 100. There were 4 wins, 2 losses, and 1 break-even, which netted an overall profit of +31 points.

As I say it's still a relatively new system but the results so far have been very encouraging. One thing I have learnt is that the USD/JPY is not suited to this system, at least during this hour, so I shall be sticking with the GBP/USD, the EUR/USD and the FTSE.

It's quite exciting because if it does turn out to be consistently profitable, I can concentrate on just trading during this opening hour, leaving me free to do whatever I like for the rest of the day.

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