Live Trade Result – USD/CHF

Filed under: Live Trades |

Well, we just had rather a disappointing result on the USD/CHF pair, which we should not be too disheartened about and just take it as a part of the process of trading. It is always the same after a good run of results – you start to feel invincible. However, on this occasion, the market went against us.

 

Figure 1.

If you take a look at Figure 1, you will see the daily chart for the USD/CHF pair. Our setup was basically a breakout of the previous low on this chart. I felt that there was a lot of bearish momentum, with the 8-day EMA crossed well below the 21-day EMA. So once price broke and closed below the previous low (marked in with a thin red horizontal line), I felt that this was a good area to hop on-board to this bearish momentum.

 

I put an order in to go short at a 50% retracement of the bearish candle, with a stop loss just a few pips above the high of the bearish candle, and a target of two times our risk (although I planned to take 70% of the profits at the 1R area, and let the other 30% of the lots run). The order was filled, and price seemed to be taking a breather. However, price has since moved up a little and our stop loss has been hit for a 1% loss on the bank. This leaves us with marginal profits for this month, so we need to do better.

 

The breakout strategy is one that has worked well recently, and for this reason, we will stick by this particular setup. Price did get close to the 1R area, and if it had, we would now be sitting on 0.4% profits rather than a 1% loss. Well, that is all I have for you this week, and I’ll be back next week with more price action trade examples. Until then, have a great weekend.

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