Live Trade Number 2 – EUR/CHF 1-Hour Chart: ANALYSIS and RESULT

Filed under: Live Trades |

Figure 1.

Well, our first live trade was cancelled, and our second trade unfortunately hit our stop loss for a loss of 100.48 GBP. Notice how you can’t get to exactly round numbers even when you work our your lot sizes as precisely as you can. Please also note that results can vary from broker to broker, but if you send me an email at jjrgaskell@hotmail.com, then I will let you know which broker I am using so that you can emulate my results exactly – providing that you can the orders in quickly enough. If this eventually became a paid service, then you would get the trades by email or SMS text so you could get the orders in more quickly.

 

Figure 2.

So let’s analyze this failed trade anyway, just to check that the methodology is sound. Figure 1 shows our trade setup, with a bearish engulfing pattern at a significant area of support/resistance. Our risk-reward was 1:2, and I felt quite optimistic about this trade. However, Figure 2 shows how the trade worked out. It did initially move into profits of about 100 GBP, and had I not gone to bed, I might have locked in 75% of the profits and let the other 25% run. This would have resulted in a 50 GBP profit rather than a 100 GBP loss. However, for the purpose of this test, I will not be showing results including profit taking, although you may do this at your own discretion.

 

Figure 3.

If you look at Figure 3 and 4, you will see two similar trade setups with engulfing patterns on the 1-hour charts that I missed yesterday – both of which would have been profitable. Since these are almost identical setups, we can regard ourselves as being unlucky to pick the one that did not come off. That’s it for today – more tomorrow.

Figure 4.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>