Live Trade – GBP/USD (Result)

Filed under: Live Trades |

 

Well, there were some wild things happening on the GBP/USD pair yesterday, and I am happy to report that I came out ahead of the game. If you take a look at Figure 1, you will see some of the volatility present on this pair yesterday.

 

Figure 1.

Figure 1.

Figure 1 shows the daily chart for the GBP/USD pair. Just to remind you, the highlighted candle was our entry point, at a 50% retracement of the bearish pin bar, with a stop loss initially placed just above the high of the pin bar, and with a target of six times the risk.

 

Figure 2.

Figure 2.

To begin with, this trade went very well indeed. In fact, it moved into profits of four times the risk in a very short space of time. Fortunately, I was keeping an eye on this progress; and at this point, I moved my stop loss to breakeven to ensure a risk free trade. If you look at Figure 2, you will see the 1-hour chart for the same GBP/USD pair, and you will see at the bottom of this chart that a very pronounced pin bar reversal began to form. When this started to happen, I moved my stop loss to profits of two times the original risk, as I was concerned that a complete reversal might happen – and so it did!

 

As you can see from Figure 1, this market turned around completely and became very bullish. Had we not moved our stop losses up when the trade went into profits, we could have taken a -1% hit on the account; but as it is, this trade stands at a 2% gain. This one was an unusual one, and it is a good lesson in moving stops up as the trade moves into profit – but not too much, so that the trade still has room to breathe.

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