Live Trade Number 60 – ANALYSIS and RESULT

Filed under: Live Trades |


Our live trade number 60 did not come off. But as always, regardless of the outcome of the trade, I would like to take you though the ins and outs of the setup. Remember, if only 30% of your trades are winners with a risk-reward of 1:3, then you would be very profitable indeed – and that is the kind of percentages we are looking for; so we must learn to take the losers as a part of the process.


Figure 1.

The trade in question was a trade on the EUR/CHF forex currency pair. It was a very simple setup actually. If you look at Figure 1, you will see the daily chart for the EUR/CHF pair. The price had been clearly trending downwards, with the 8-day exponential moving average firmly below the 21-day exponential moving average and the chart moving down from left to right.   There is also an area of support/resistance that price has just moved through (marked with a thin horizontal red line). To add to this confluence, a very nice pin bar formed at this level in the direction of the trend.


I put an order in at a 50% retracement of this pin bar, with a stop loss placed just a few pips above the high of the move, and a target of three times my risk, which is a very nice risk-reward scenario.


Figure 2.

However, if you look at Figure 2, you will see that the trade was not successful. But remember, as I said at the beginning of this article, the trade only had around a 30% chance of success, so we can’t be too disappointed. In the long run, this risk-reward setup should be profitable, so we just have to keep the faith and I’m sure we will be back in profit again soon. Here is the official result.


Trade 60 = -99.78


Bank = 9,612 (-3.88%)

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