Thursday, June 17, 2010

USD/CHF +65 pips

This is about halfway for me this month trading my TREND ALPHA JUNE strategy as per my last post.  I've made about 20 or so trades since the beginning of the month and my current balance is sitting at $79.05, up from my starting balance of $50.  That's about 260 pips or so that I'm positive by in my trades.  I'm pretty happy with that.

One change that I have made to my trading strategy is that I will not open an additional trade to cover a move that goes against me.  This would leave me with 2 open positions, so instead I simply close the current trade I have if it is no longer working for me and open a new one.  This makes it impossible for me to ever overleverage a position and risk a losing trade causing a huge spike and resulting in a margin call on my account.  In the past 4 months I have had 2 margin calls on my account due to this problem and I believe I have finally figured out the simple solution.  Plus it's also understanding the mental position that I have to take that it's OK to have a losing trade ;)  Control over greed and fear, right?  I am also currently paper trading the 15 min time frame vs. 1 hr with a little tweak to my entry/exit parameters... I'll have more news on this after a few more weeks of working on that one.

My goal is to consistently average +25 to +50 pips/day.

Here's my current trade that I closed this morning:

My entry was spot on at the high point on some resistance pullback on the Swiss.  I could have waited a little longer and still picked up a great entry and better confirmed the resistance.  It may look like I exited early, however this move took place while I was sleeping and set off an alarm, so I decided to just close it and take the pips.  I've missed a couple of similar opportunities this week in taking profits, so I felt justified in grabbing this one.  In turn, I could have let it run until it the resistance area you see at the current left of the chart too and I would have closed it there for a 150 pip gain vs. 65 pips.

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