Trade Update - USD/CHF Long

The Trade: USD/CHF Long



Reason/Setup:
I entered this trade based on the A-MACD setup and Elite setup, both on 4 hour charts. On the A-MACD setup, we see the moving averages have just crossed higher. Both the AO and MACD are looking to cross above 0 and the CCI has already crossed over 0. Good entry point. On the Elite setup, we see the trigger candle where the 3 EMA has crossed over the 34 SMA. I enter the trade in the middle of the next candle. Over all a good entry. Since I got the entry correct, and the signal looks good, I am going with a 50 pip stop an target for this trade.

Trade Details:

• Date Entered: April 15 2008, 11:20am
• Entry: 1.00704
• Lots: 10
• Stop Loss: 1.00204
• Target: 1.00904

• Date Closed: April 18 2008, 2:15am
• Result: Pair modified target point.
• Total Pips: +200
• Profit/Loss: $198.19
• Rating: 2

Comments:
I did make money in this trade, but I did not follow my rules. I should have lost money in this trade as had I stuck to my rules, the pair would have hit my stop loss. As soon as I entered, the price action reversed and I was soon close to hitting my stop loss. So I decided to remove my stop loss hoping that the pair would bounce up. But instead it continued going lower. Infact for most of the trade, I was down almost 100 pips, and at the lowest point, I was down almost 130 pips.

I also messed with my target point. I had initially set it to 50 pips. But when I saw price tanking, I changed it to 30 pips, and ultimately set it at 20 pips. I guess I was kinda lucky as they was a huge run on all CHF crosses on the 18th that caused my target to be hit. Overall, even though the entry was good, I should have followed my rules and cut my losses short when the price tanked. Maybe then I could have re-entered the trade when the opportunity arose.