Well it wasn’t quite such a hectic week last week.
Most evenings, there were only a few trades on offer. And that meant there was plenty of time for close examination of the opportunities.
The only real exception was Tuesday evening, where there were no less than seven trades identified.
Interestingly, it was a week where the majority of trades were possible with Stop Loss levels of less than 125 pips. That was good news for Bedtime Traders with more modest banks, giving plenty of opportunity to get involved.
And from 10 trades with those smaller stops, it was possible to achieve a respectable +416 pips.
However, as you can see from the table below, with all trades considered, the net result was a more modest +216 pips. That’s because the CAD/ZAR on Tuesday evening gave a much larger loan to market (LTM) and it was only by rolling over to the next day that the LTM was reduced to 202 pips.
This was also only possible if the original Stop Loss had been placed, as it should have been, below the low 31st March 2014.
Overall, the full result sheet for last week including the extended trades was:
16 Trades identified by the Signal
7 Winning trades
6 Trades made loans to the market.
3 Trades weren’t taken
Net result for the week +216 pips.
We’ll get to the full tables in a moment, after this week’s training note.
This week’s training note results from a number of questions concerning the fact that I didn’t include the 2nd April 2014 CAD/ZAR trade in last week’s report. Some traders wanted to know how I would have handled the trade had it have been taken.
To be clear, this is not the same trade as mentioned above in the introduction but relates to the previous week.
The CAD/ZAR didn’t feature on Profile 0 of my Signal indicator 2nd April 2014 so I didn’t take the trade.
If it is very close to the qualifying parameters at 23:00, sometimes it doesn’t register on some systems, unfortunately something we have to live with.
However, let’s look at the candles retrospectively now. The CAD/ZAR candle on the 2nd April 2014 was a near/possible Gravestone DoJi, which closed at 9.6018 and the first 5 minute candle shows that the price within minutes was rising which would have prompted me to take an Order to Open.
You can check this by changing to the M5 candle and seeing the rise for yourself.
Now let’s look at the 8th April 2014 Valid Dragonfly DoJi on the CAD/ZAR in this week’s report.
The price action on the 9th April 2014 moved in both directions but eventually closed very close to the Stop Loss which, as mentioned above, should have been placed below the low 31st March 2014.
Leaving the trade to roll over when most of the Stop Loss has been used is an individual choice but can often result in the potential LTM being reduced or sometimes moved back into profit.
A further good example of this situation was on the EUR/ZAR on Tuesday evening, 8th April 2014, which can be seen in the screen shot below.
It should be noted that the stop loss was moved above the 13 DMA to lock in as much profit as possible on Friday afternoon and the trade was exited at 18:00 as I was going out on that evening.
It is not unusual for gains to diminish as pull backs can be seen in late trading on Friday evenings.
Those looking at the charts this morning (Monday 14th April 2014) would see that if the trade had been left to this morning a further 50 pips might have been possible.
Am I dismayed about the loss of this potential extra 50 pips? Not at all, one should always be content with the profit made and move on.
Now let’s move on to the full details of last week’s trades…
Last Week’s Opportunities for W/E 12th April 2014:
Note: Exit time assumes 11pm on the day following the DoJi unless otherwise specified.
06/04/2014 – 11/04/2014 – EUR/CHF – NGDS
Possible Gravestone DoJi off resistance Close 11/02/2014.
06/04/2014 – 11/04/2014 – CAD/JPY – GDS
Valid Gravestone DoJi off resistance at 200 DMA.
06/04/2014 – 11/04/2014 – CAD/SGD – NGDS
Possible Gravestone DoJi off resistance high 06/03/2014.
08/04/2014 – 11/04/2014 – EUR/ZAR – NDDL
Possible Dragonfly DoJi off support low 04/04/2014. See Training Note.
08/04/2014 – 09/04/2014 – NZD/SGD – NGDS
Possible Gravestone DoJi off resistance at 23 DMA.
08/04/2014 – 09/04/2014 – SGD/TRY – NDDL
Possible Dragonfly DoJi off support at 200 DMA.
09/04/2014 – 10/04/2014 – EUR/SGD – DDL
Valid Dragonfly DoJi off support Close 12/02/2014.
09/04/2014 – 10/04/2014 – TRY/JPY – NDDL
Possible Dragonfly DoJi off support at 200 DMA and 13 DMA.
10/04/2014 – 11/04/2014 – AUD/JPY – NGDS
Possible Gravestone DoJi off resistance high 04/04/2014.
10/04/2014 – 11/04/2014 – NZD/CAD – GDS
Valid Gravestone DoJi off resistance at DMAs.
Possible trades but with large stops. Consider smaller stakes.
07/04/2014 – 08/04/2014 – CHF/SEK – NGDS
Possible Gravestone DoJi off resistance 24/12/2013.
08/04/2014 – 10/04/2014 – CAD/ZAR – DDL
Valid Dragonfly DoJi off support 31/03/2014. See Training Note.
08/04/2014 – 10/04/2014 – SGD/ZAR – DDL
Valid Dragonfly DoJi off support, previous resistance, 12/11/2013.
Valid / Possible Trades Not Taken.
BedtimeTrader.org is a test and discussion site only. Bedtime Trader is distributed by Agora Lifestyles. To visit the official Bedtime Trader website please click the Agora Lifestyles link or button. The above is an extract from Kevins weekly update e-mail.
Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you. Disclaimer: This is a Bedtime Trader test and discussion site only. The website content is neither financial nor trading advice. Do not place trades based on any trading discussions or decisions detailed anywhere on this site, including the Bedtime Trader Chat Room and Bedtime Trader Forum. I am new to Forex myself and accept no responsibility for any trades you may make or losses you may incur. Like myself you trade at your own risk.
Author: Rich E