This is the first week that I haven't traded the Forex Morning Trade system and I have to say I've enjoyed the extra hour or so in bed. I just looked at the charts for this week and I think it would have lost 40 points using the original settings, so I think I have made the right decision as it doesn't seem to be as profitable as it used to be.
My main 4 hour trading system didn't generate any decent set-ups on the major forex pairs this week, but I did manage to find a trade on the FTSE 100.
The Supertrend indicator was red on the daily chart (indicating a downward trend) so I was looking to go short on any downward EMA crossover on the 4 hour chart. I don't trade this index very often, but it had just rejected the key 6000 level a few times and looked like an excellent shorting opportunity.
The EMAs looked like they were crossing downwards on Wednesday afternoon after a double dose of poor economic figures from the US, and after a slight pull-back I went short at 5930. My plan of attack was to close half the position for 40 points and the other half for 80 points, and I did eventually manage to achieve this goal after the price hit 5850 yesterday afternoon.
Other than that I think I placed 5 separate breakout trades on the GBP/USD during the week. I don't really feel like discussing each of these trades separately as it will take forever, but they were all based on low overnight trading ranges and subsequent breakouts occurring after 08.00, when the London market opens.
You can check them out on the 5 minute chart if you want. There were two breakout trades on Wednesday morning (one long and one short). With the first trade I closed half the position for 10 points before being stopped out at break-even, and with the second trade I closed the entire position at S1 for around 20 points after poor manufacturing figures had just been released.
There were another two breakouts on Thursday morning. The first one didn't come to anything and I took a loss of 20 points, but the second one generated a nice profit as I closed half at the pivot points for around 14 points, and the other half at 1.6400 for around 32 points profit.
Finally there was a decent breakout opportunity earlier today on this pair as well. Unfortunately because I always like to end the week with a winning trade, I was a little too cautious and decided to close half the position for 10 points and move my stop loss down to break-even, which was subsequently triggered. The annoying thing was that I was targeting the S1 support level as my exit point, and the price did actually hit this point relatively easily.
Elsewhere my shares haven't really gone anywhere, except for Lloyds which has been woeful, and I am now just sitting on the sidelines mainly. There are a lot of potential bargains out there such as Barclays, Lloyds, Aviva and BP amongst the large cap stocks, but ideally I want the FTSE to fall to around the 5750/5800 area before buying into any of these.
Anyway that's all for this week. If you want to check out my main 4 hour trading strategy, you can access it for free when you subscribe to my newsletter via the form above.
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