May 22, 2009

Weekly Trading Update - May 18-22 2009

This week has been absolutely incredible and I'm pretty sure it's been my most profitable week ever. There was one solid trade on each one of the three major currency pairs that I trade (GBP/USD, EUR/USD and USD/JPY) and each one worked out perfectly.

The daily Supertrend was bullish on the GBP/USD and EUR/USD pairs and bearish on the USD/JPY pair so this dictated which way I should have been trading on the 4 hour charts, and thankfully there were EMA crossovers in the required direction on all three pairs.

The first crossover occurred right at the start of the week on Monday morning. The EMAs on the 4 hour GBP/USD chart crossed nicely upwards and I entered a long position in the afternoon after the price pulled back to 1.5272. I then closed half the position for 50 points and let the other half run, moving my stop loss to break-even.

My initial target was 1.55 but after it reached this target relatively easily I decided to move my stop loss up to 1.54 and set my target price at 1.56 which was automatically triggered on Wednesday. So this was an excellent result in itself (although it has of course gone up by another 350 points since then) but I had a similar outcome on the EUR/USD pair.

This crossover occurred on Tuesday morning and I was actually very lucky here because if I had got up earlier I probably would have entered a position at 1.3570 (which would have been taken out at break-even later on) but I switched on the computer, saw the crossover taking shape and managed to get in at 1.3552.

Anyway I ended up closing half the position for 50 points and letting the other half run, moving my stop loss up to break-even once more. The price did fall back a few times but thankfully it didn't quite manage to hit my stop loss and after this lucky escape I decided I was going to hold onto this position for as long as possible.

The price continued to soar and after it hit 1.38 on Wednesday evening I was tempted to close out but I held on for a bit longer and ended up closing out the position for 1.3883 for a profit of around 330 points.

The final position was on the USD/JPY pair, which crossed downwards in the early hours of Wednesday morning. Thankfully it took it's time and I managed to enter a short position in the morning at 95.66. I closed half the position for 40 points and let the other half run. I was going to hold out for 94 but when I was 100 points in profit I decided that was a good enough return and closed the position.

So overall it was an outstanding week and it's been long overdue because in recent weeks these EMA crossovers have fizzled out fairly quickly. The only downside is that there are unlikely to be too many set-ups next week, if any at all, so here's hoping we get some big reversals so we can start all over again.

(If you would like full details of my main 4 hour trading strategy you can access it by filling on the form above and subscribing to my newsletter).

Have a great weekend.

 

 

Permalink • Print • Comment

2 Comments on Weekly Trading Update - May 18-22 2009 »

May 23, 2009

max @ 9:00 am:

quote:
…The only downside is that there are unlikely to be too many set-ups next week, if any at all, so here's hoping we get some big reversals so we can start all over again.

I agree with your quote, and I was wondering, should we switch to a 1 hr chart next week, in order to catch maybe some movements in the direction of the trend?
thx
Max

May 24, 2009

James Woolley @ 8:48 am:

Hi Max,

I don't personally trade the 1 hour charts but I think it could probably be just as profitable. However I would probably look for both the daily and the 4 hour Supertrend to be in agreement before taking any positions on the 1 hour chart in order to avoid some of the false crossovers.

Regarding the 4 hour method, I think there could be some decent opportunities to go long on the FTSE 100 and Dow Jones at some point next week.

Leave a Comment