Trade Update - GBP/JPY Long

The Trade: GBP/JPY Long


Reason/Setup:
I entered this trade based on the Elite setup on 1 hour chart. The pair had showed some nice uptrend with consecutive up candles. And it was also a nice break of the price & 3 EMA above the 34 SMA line. But, I entered this trade very late. Almost 2 hours late, and that has cost me about 60 pips. But this is a volatile pair, and I feel it might have some more upward momentum. Setting target to 60 pips.

Update 04/22 11:30pm:
Price has been going against me. I am now reducing the target to just 25 pips form 60 pips to account for the late entry.

Update 04/23 7am:
I am really caught with this pair and I dont know how to exit. The trend has clearly reversed. And there is going to be a big move down if you ask me. But I am sitting in a 170 pip loss at the moment. I know I should probably take the loss and close the position, but I am not able to do it. Very bad.

Update 04/23/08 4pm:
Finally closed this position for a big loss. Entry was good, but the signal reversed, and I held on to it too long. This pair is now signaled for a sell using the OzFX system.

Trade Details:

• Date Entered: April 22 2008, 7:00 am
• Entry: 206.084
• Lots: 10
• Stop Loss: no stop loss set.
  
• Target: 206.284

• Date Closed: April 23 2008, 4:10 pm
  
• Result: Closed trade manually.
• Total Pips: -1410
• Profit/Loss: $1306.18
• Rating: 3

Trade Update - USD/JPY Long

The Trade: USD/JPY Short


Reason/Setup:
I entered this trade based on the Elite setup on 1 hour chart. At the time of entry, the price had just crossed over the 34 SMA and so did the 3 EMA. The entry was made at the beginning of the new candle. I had a 30 pip stop and 50 pip target.

Trade Details:

• Date Entered: April 22 2008, 7:00 am
• Entry: 103.462
• Lots: 10
• Stop Loss: 103.162
  
• Target: 103.962

• Date Closed: April 22 2008, 7:20 pm
  
• Result: Closed position as it was moving against me.
• Total Pips: -250
• Profit/Loss: $245.13
• Rating: 2

Comments:
As can be seen from the chart, the candles prior to where I entered the trade were all mixed. There were both up and down candles, and also candles with long wicks. This usualy means the price action is not very strong. Considering the candle prior to the entry candle was not positive, I should not have entered this trade. I manually closed this trade soon after entering it as the price moved against me.

Trade Update - CAD/JPY Short

The Trade: CAD/JPY Squeeze


Reason/Setup:
Entered this trade based on the signal from the squeeze indicator on 1 hour chart. was late with the entry, but the pair had earlier moved higher and now has fallen back to where it started.

Trade Details:

• Date Entered: April 21 2008, 9:00 pm
• Entry: 102.14
• Lots: 7
• Stop Loss: 102.44
  
• Target: 101.84

• Date Closed: April 21 2008, 10:30 pm
  
• Result: Pair hit stop loss.
• Total Pips: -210
• Profit/Loss: $203.52
• Rating: 2

Comments:
Another not so good trade. Yes that fact is that even if I had entered the trade as soon as the signal was given, I would have still been stopped out. Had that been the case, I would have rated the trade a 5 since I followed the system. But that fact that I was almost an hour late should have prevented me from entering the trade. So overall a very poor trade.

Trade Update - EUR/JPY Short

The Trade: EUR/JPY Short



Reason/Setup:
Entered the based on the OzFX setups on 1 hour chart. I also used the Elite setup on 1 hour chart to confirm the trend.

In the OzFX setup, I have both the 30 minute and 1 hour chart showing similar trend. The Stoch is relatively wide and is moving down. The price action also shows multiple red candles indicating strength in moving down.

The Elite setup was used just to confirm trend. Here the 3 EMA was below the 34 SMA and the CCI was below 0. SO it was safe to enter the trade.

Trade Details:

• Date Entered: April 21 2008, 6pm
• Entry: 164.042
• Lots: 10
• Stop Loss: 164.342
  
• Target: 164.542

• Date Closed: April 21 2008, 10:45pm
  
• Result: Pair hit target.
• Total Pips: +500
  
• Profit/Loss: $485.18
  
• Rating: 5

Comments:
This was one of those good trades because of near perfect execution. I had placed my target 50 pips away and a stop of 30. Since the trend was strong on multiple time frames, the pair continued to move i my favor and almost hit my target point. But it then started to retrace its losses before starting to move back down. Good placements of stops and targets coupled with proper identification of the trend helped me win this trade.

Trade Update - EUR/JPY Long

The Trade: EUR/JPY Long


Reason/Setup:
This trade is based on the Elite setup on 1 hour chart. This is not a conventional Elite setup entry as in there was no cross over of the moving averages Instead, I am looking for the prince to bounce off the 34 SMA line as this pair has been in a long uptrend and we have seen some sideways movement of late.

Trade Details:

• Date Entered: April 21 2008, 4:15pm
• Entry: 164.412
• Lots: 10
• Stop Loss: 164.112
  
• Target: 164.712

• Date Closed: April 21 2008, 4:45pm
  
• Result: Pair hit stop loss.
• Total Pips: -300
• Profit/Loss: $291.07
• Rating: 2

Comments:
As we see now, this wasn't a good trade to do. Few things going against me. First when you have such a long up trend, there is bound to be some consolidation. And next, the price has been moving sideways which is not good when entering trades. We need to wait for a definite break either up or down before looking to place a trade in this scenario. It didn't take too long for me to be stopped out of this trade.

Trade Update - GBP/USD Short

The Trade: GBP/USD Short



Reason/Setup:
Entered this trade based on the A-MACD setup and Elite setup, both on 4 hour charts. But on the Elite setup, the 3 EMA has not yet crossed below the 34 SMA. And also on both setups, the CCI has crossed the 0 line, but the angle is not healthy and is hugging the 0 line. It could potentially move back up which means this is not the ideal trade to enter.

Also on the 4 hour charts, I was late in entering this trade. I did not enter the trade as soon as the new candle started.

Update 04/21/08 4:50pm:
Thinking back, this is not a good trade. The 3 EMA never crossed below the 34 SMA in the Elite setup when I entered the trade. And of course, the pair promptly moved against me as soon as I entered. That is what happens when you ignore your rules and try to enter your trade early.

Trade Details:

• Date Entered: April 21 2008, 3pm
• Entry: 1.97855
• Lots: 10
• Stop Loss: 1.98355
  
• Target: 1.97255

• Date Closed: April 22 2008, 2am
  
• Result: Pair hit stop loss.
• Total Pips: -500
• Profit/Loss: $500
• Rating: 2

Comments:
As mentioned in my update, I entered too early and the signal in the Elite setup never developed. Systems and rules are only as good as its being followed correctly. Every time I try to break the system or rules, I end up with a losing trade.

Trade Update - GBP/CHF Short

The Trade: GBP/CHF Short



Reason/Setup:
This trade was based on the OzFX setup on 1 hour chart, but the real driving force was the strong trend in the 30 minute chart. So I entered the 1 hour chart a bit early trying to catch the reversal. It could be a premature move.

Trade Details:

• Date Entered: April 21 2008, 11:30am
• Entry: 1.9955
• Lots: 10
• Stop Loss: 2.0005
  
• Target: 1.9895

• Date Closed: April 22 2008, 4:40pm
  
• Result: Pair hit stop loss.
• Total Pips: -500
• Profit/Loss: $495.58
• Rating: 2

Comments:
It sure was a premature move. Jumping into the trade before the Stoch gave a signal for good trend cost me in this trade. As can be seen from the chart, the very next candle, the trend reversed and so did the AO and Stoch indicators. I give this a rating of 2 since I broke my own rules of not basing trades off lower time frames and not waiting for the setup to develop on the 1 hour chart.