February 28, 2009
Weekly Trading Update - February 23-27
My main trading strategy performed well this week with four trades being triggered in total. Three of those trades occurred on the EUR/USD so I will tell you about those first of all.
The Supertrend indicator on the daily chart was red so I was only looking for short positions from downward EMA crossovers on the 4 hour chart all this week.
The first crossover occurred on Monday evening (or at least it looked as if it was crossing downwards) and I went short at 1.2725. The price then dropped nicely and I closed half the position for 50 points and let the other half run overnight moving my stop loss to break-even and setting my exit price at the 150 points mark. Unfortunately I woke up to find that the downwards move didn't have much momentum behind it and I was closed out at break-even.
It was a similar story on Wednesday when it attempted to break downwards once more. I went short at 1.2750, closed half the position for 50 points before being stopped out at break-even once more.
Thankfully there was time for one last crossover, this time on Thursday evening. I went short at 1.2725 but was starting to regret this because it was getting very late and I still hadn't had a chance to close half for 50 points. So I ended up setting a stop loss at -50 and a limit price at +50 and letting the position run overnight. The net result was that I woke up to see the entire position closed out for 50 points, which I was more than happy with.
So those three trades on the EUR/USD worked out fairly well, but I also traded the Dow Jones this week. There was a perfect set-up on the 4 hour chart on Thursday evening and I went short at 7234.5. (I was looking for an entry point at 7250 but it failed to reach this level and I didn't want to miss out altogether so I accepted 7234.5).
I closed half of this position that same evening for 50 points and let the other half run overnight after moving my stop loss to break-even. It was still running when the Dow opened yesterday afternoon and I eventually ended up closing out the position as soon as it hit 7100 for a very nice profit.
So all in all it was a very profitable week. It could have been better if the EUR/USD had fallen more substantially than it actually did but as long as you can avoid making any losing trades then you can't really complain.
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