Saturday, February 22, 2014

Week in Review: 17th February 2014 to 23rd February 2014

Made a bit of profit this week. I won six out of eight trades, with three trades left open over the weekend. However, those three open trades are currently negative, and I expect one of them to hit its stop loss on Monday. I only left that particular trade open out of discipline (need to stick to your system's rules, no matter what). 

Here's a snapshot of two of the trades that I took this week.

USDCAD - Daily Chart

This worked out quite well. The 18th of Feb saw low volatility, so I expected the next day to have some good movement and put in a pending long and short on the break of the high or low. 

Because my reward is only 0.5 * risk, I managed to avoid getting hurt by the initial bearish 'fakeout', as seen below. My short was triggered when the low of the 18th Feb broke, and I took profit at 0.5R before price turned back upwards.

As price rose and broke the high of the 18th Feb, it triggered my long and I took profit at 0.5R.

System Development

I just created the Ebisu trading system this week. It's based on large pinbars that appear on the daily charts and backtesting shows it to be profitable over the last 12 years. based on 18 currency pairs .  

At the moment I'm backtesting a new system based on short-term support and resistance on the daily charts. Will post more details if the backtest looks good. 

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