Week in Review: 5th May 2014 to 11th May 2014

Just capped a profitable week. I opened and won two trades this week.

TRADES

USDCHF

I spotted this large pinbar over the weekend and went short on Monday, using my Ebisu trading system. I took profit at around 0.8733, which was pretty good. I managed to catch a little over half of the downward move before it reached support. As you can see, once price found support, it bounced back right up. Always trust your system's rules and don't get greedy. My reward was a little over 0.5R, which according to my backtest, is optimal. 

SYSTEM DEVELOPMENT

There's been a promising development on this front. My Hermes low volatility system has been my bread and butter for the last year and I revisited it to see if I could expand the number of entry signals without sacrificing (too much) profitability. So far the results are looking interesting. I added an ADX(14) indicator to filter out ranging vs trending conditions and found the system performs better during ranging periods, which surprised me. But it's still early days and my research might lead to a dead end (as it usually happens).