My last blog piece covered trades in the GBPUSD and USDCHF which were helped to successful conclusions by the raft of fundamental data and news items that were released last week. You can read about thosetrades here:
There was one last trade in CHFJPY which was also still running until early this afternoon when it hit target.
CHFJPY entered a STAM 2 Buying environment and I was just waiting for a suitable entry signal. I was triggered in on 30th August at 81.86 with a stop of 81.37 for 49 pips / O.5% / 1R at risk. The Target was taken from the daily chart and I was looking at placing my target at 84.68 just in front of the daily 200 MA and around a recent weekly swing point from June. This would give me a target of +282 pips /+2.85%/ +5.7R return for my trade should the target be hit. A very handsome reward to risk ratio so the trade was on.
The trade triggered…..and did nothing. Whilst not ideal, this was ok because I was travelling and knew my orders were placed and I was happy that risk was managed. There were a couple of underlying pointers that gave me confidence to stay with the trade but I’d decided that if it had not moved significantly in my direction by COB on Thursday 6th I would close the trade around Break-Even. I believe that taking a position into an NFP (or any major news announcement) hoping that it will bale out your position is an act of gambling and not the actions of a well-measured trader.
Anyway Wednesday the 5th completed and I was happy that the trade was going in the right direction and then on the 6th Super Mario said a few words and the trade shot off in the right direction. This move continued off the back of the NFP numbers and so I was now in good territory and happy to let it run. It pootled sideways for a few days at the start of last week before been given the acceleration jab by Ben Bernanke. The trade got to within 3 pips of my target on Friday (basically the spread). Come today price tried to get over the target line without any real success before a concerted push early this afternoon meant price hit my target at 84.68. In fact price went a good 57 points past my target, but really I’m happy as I hit my target.
So overall the trade played out well and I made +282 pips /+2.85%/ +5.7R from the trade. Overall for those last three trades the figures were +656 pips / +12.6 R / +6.2% . What can I say other than, ‘thanks Super Mario!’.
If you want to learn how I achieved these returns and how you too can trade like this then you can find out more on my Lifestyle Trader Day. Drop me a line or see here: https://fxtraderpaul.com/how-can-i-help-you/
Until next time, trade well!