Home > Uncategorized > EURUSD 5 mins (+50pips)

EURUSD 5 mins (+50pips)

REALLY hectic week. Have to post trades that are completed instead of the usual Initiation-Subsequent Update style.

Anyway here is one to break the drought. There’re actually a couple of additional losing trades that I’ve not posted yet as the print screens are on my work laptop. Will post when I get the time to later.

Anyway here goes:

This trade I particularly broke the R:R rules quite a bit as you can see the total profit taken was 50 pips. From the chart you can see that the target was set below the swing low. Couple of reasons why I did that.

i) Price was getting close to round number 1.4800;

ii) Late NY session whereby no news, no mad liquidity. Was kinda hoping the momentum will just bring the price eventually to the 00 and rebounce during ECB cash rate release later in the day.

Anyway this R:R was particularly great, achieving more than 2:1 (not considering the fact that I trailed my stop and therefore after trade was initiated and price moved, risk actually was much less than half of reward.)

Food for thought. Trailing stop or fixed stop?? Consider the scenario that you trail, and u get whipped out for 3-4 losers of approx 10~20 pips. Then occasionally you nail a 30~50 pipper. Kinda makes up for 3~4 losing trades.

I believe that with the usage of TS, you will alter your risk significantly even though chances of getting whipped increase. However, once price has moved and you trail by 25 pips, when it whips back and stops you out, is it correct to say that the trend has been invalidated since it has already reversed 25 pips (a considerable amount in intraday scalping)? And since the trend has been invalidated, wouldn’t it be right that you ‘exited’ the trade in that sense instead of not trailing and still risking 25 pips (using fixed stop)?

What do you think?

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