May 17, 2008
Weekly Trading Update - May 12-16
It was quite a quiet week this week as I only traded one position using my main trading strategy. However it was a profitable one so I can't really complain.
I went short on the EUR/USD straight after switching on my computer on Wednesday morning. I thought an EMA crossover might occur overnight but luckily it delayed doing so until I was at my computer and ready to trade.
I went short at 1.5460 and closed half my position not long after at 1.5420 for a nice quick profit, and let the other half run targeting 1.5350. Unfortunately despite falling further to 1.5400, it quickly rebounded and hit my stop loss which I'd moved up to break-even, ie 1.5460, so this was slightly disappointing.
There was another downwards crossover later on in the day on the EUR/USD pair but I don't like trading late on in the day as the markets are too quiet at this point and I would have had to stay up all night to monitor the position. As it turned out it was a false crossover anyway so no harm done.
There was also another crossover on the USD/JPY which broke strongly upwards after a period of consolidation but it happened when I was away from the computer so I missed out on trading this one.
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Elsewhere I've now abandoned my original 5 minute strategy which I've been experimenting with in recent weeks. It was based on CCI crossovers primarily as well as overbought and oversold RSI and Stochastics. I mainly used it to trade the hour between 8.00 and 9.00 UK time and although it can often produce excellent profits at times, it's too inconsistent for my liking.
Instead I'm now focusing on a short-term strategy that involves multiple Exponential Moving Averages which has so far proven to be much more reliable and best of all it works all through the day and not just during the first hour of the London session.
I will reveal more details in due course if it turns out to be a consistently profitable strategy.