Simple Forex System Trading

This is the continuation from yesterday’s open buy position of EUR/GBP.  Our target, 0.9300, was hit at 7:25 GMT.  We took in 60 pips of profit.

I happened to see the price go above the cloud at 7:00 GMT, so I decided to long this pair.  I entered a buy limit at 0.9240.  I wanted the win/loss ratio to be 1:1 and leave enough room for stop loss just in case the price goes back down and penatrates the cloud and then bounces right back up.  So I set the stop loss at 0.9180, and the take profit at 0.9300.

The order was filled at 7:32 GMT.  I adjusted the stop loss from 0.9180 to 0.9242 at around 19:08 GMT, 2 tips above the entry.  The 2 pips should be enough to cover the interest expense.  I’ll watch how the price movement goes and adjust the stop loss or take profit accordingly later.

See update here

Bummer!  We lost 30 pips today.  The market was fluctuating in a fairly small range during the Europe session.  The sell stop order was not filled until 9:54 GMT.  But the market only went down to 124.69, 12 pips shy of the take-profit target, before it turned around and went north.  Two hours later, the stop loss was hit.  This makes us break even for the month again.

We had another win.  The stop buy order was filled at 124.57 at around 7:36 GMT.  The market was moving fast.  Our target was hit within 13 minutes.  30 pips of profit were booked today.

AND we had a winner today.  The stop sell at 123.26 brought in 30 pips of profit.  The order was filled at around 9:38 GMT.  20 minutes later, our take-profit target was hit.  Have a great weekend.