Live Trade 81 – ANALYSIS and RESULT

Filed under: Live Trades |

Our live trade number 81 has come in, and it is not a positive result. However, there is far more to the story than just that so I would like to talk you through the ins and outs of the setup right now.


Figure 1.

The trade in question was on the USD/CAD forex currency pair, which is the pair for the US dollar and the Canadian dollar. If you look at Figure 1, you will see the daily chart for this pair, and what you will see is that the pair has been in a down trend, with the 8-day EMA firmly below the 21-day EMA, and the chart moving down from left to right. Price had moved back up to the 21-day EMA and bounced off it with a bearish pin bar, and this was where I set an order to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the move, and a target of two and a half times our risk.


Figure 2.

The order was filled and the trade was going well. We got into profits of around 2.25% of our bank, and it looked like we were going to have a profitable trade. However, the move reversed and Figure 2 shows that we ended up taking a loss. In this kind of situation, if you were at your screen I would recommend that you move your stop to breakeven at least. But since we are operating a set and forget type system here, I must record the result as a loss. Personally, I got out of this trade with a 2% profit once price started to move against us. Here is the official result:


Trade 81 = -100 GBP


Bank = 9,650 GBP (-3.5%)

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