January 15, 2010
Weekly Trading Update - 11-15 January 2010
I've got back in the swing of things this week and my trading system generated a total of four trades altogether. One of those resulted in a small loss, but the other three generated some decent profits. Indeed one of these trades is still running at the moment and will hopefully hit my profit target at some point in the near future.
The losing trade was on the USD/JPY pair. As I mentioned in my last trading update, I was looking to go long on this pair (because the Supertrend indicator was still indicating an upward trend on the daily chart) and did so when the EMAs crossed over on the 4 hour chart yesterday morning.
Unfortunately this turned out to be a false crossover and the price reversed back down again. So after entering at 91.80 yesterday morning, I ended up taking a 35 point loss.
The other pair that I took a long position on was the GBP/JPY pair a day earlier. The EMAs crossed upwards and I went long at 148.50 after a slight pull-back. I then closed half the position for 70 points, moved my stop-loss to break-even and waited to see if it could break through the 150.00 level. Unfortunately it was unable to do so and after reversing downwards I closed out at 149.65, which was still a decent enough result.
The other two positions were short positions. The first was on the EUR/GBP pair on Tuesday afternoon. The EMAs crossed downwards and I went short at 0.8980. This was a straight-forward trade because I was able to close half the position for 40 points and the other half of the position at 0.8900 for a further 40 points (minus the spread).
The final trade occurred on the EUR/USD pair earlier today. The EMAs crossed conclusively downwards overnight and despite not being able to get the optimal entry point (because I was slightly too late getting out of bed), I did manage to go short at 1.4429.
I used slightly smaller stakes because of my late entry point but it's worked out well so far. I closed half the position for 50 points earlier today and have left the other half to run for as long as possible. I've moved my stop loss down to break-even so it's effectively a free trade, and as it's the last trade of the week, I'm going to hang on to this one and see if it can fall all the way down to the 1.4200 - 1.4250 area.
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