Comments on GBP/USD trade I entered.

U

uninvited_guest

This is a live trade I just entered, 10k each. Maximum loss is $20.00, maximum gain is $20.00. Hoping for a strong move in 1 direction for a $10.00 gain, then cancel the unfilled order.


* GBP/USD presently at 1.7600.
* 5 pip spread.
* Enter to buy at 1.7625, stop at 1.7615, limit at 1.7635.
* Enter to sell at 1.7575, stop at 1.7585, limit at 1.7565.
* Time entered 6:27pm EST.

I will update once trade is closed. Anything I missed?
 
Short position got taken out at $10.00 loss. Came within 3 pips (+ $7.00) of limit, close but no cigar. With a 5 pip spread and - 10 pip stop not much room for position to breath once open. Long position still on the books.

This is a good sort of trade to enter and then go do something else. Just need more momentum in 1 direction.
 
Quote from uninvited_guest:

Short position got taken out at $10.00 loss. Came within 3 pips (+ $7.00) of limit, close but no cigar. With a 5 pip spread and - 10 pip stop not much room for position to breath once open.

Long position still on the books.
More...
losing feels good, doesn't it?

at this rate, you can trade for 50 years - just get chopped to pieces slowly. :D
 
Quote from FXsKaLpEr:

losing feels good, doesn't it?

at this rate, you can trade for 50 years - just get chopped to pieces slowly. :D
More...

Only $10.00.

I have never entered this sort of trade before. I didn't think you could enter a trade to be executed at a certain price, until it was pointed out by another poster.
 
Quote from uninvited_guest:

This is a live trade I just entered, 10k each. Maximum loss is $20.00, maximum gain is $20.00. Hoping for a strong move in 1 direction for a $10.00 gain, then cancel the unfilled order.


* GBP/USD presently at 1.7600.
* 5 pip spread.
* Enter to buy at 1.7625, stop at 1.7615, limit at 1.7635.
* Enter to sell at 1.7575, stop at 1.7585, limit at 1.7565.
* Time entered 6:27pm EST.

I will update once trade is closed. Anything I missed?
More...

* The short position got taken out within 3 pips of limit.
* Then the long position also got taken out within 3 pips of the limit.
* Total loss $20.00.


The orginal spread of entry for both legs was 25 pips but the momentum wasn't enough for that extra 10 pips before a retrace though the stops.

Looking back it looks like the stops were set too tight. As of this time the GBP/USD is at 1.7530.
 
You've mentioned that your dealer's GBP/USD spread is 5 pips. Therefore, by placing this type of +/-10 trade, you are effectively making a very short-term bet on price action. A bet that, once your entry is triggered, cable will move 15 pips in your favor before it moves just 5 pips against you. Unless you can consistently achieve accuracy of over 75%, generally that's not the kind of trading strategy you want to pursue.

Further, given routine cable price action and sub-hourly volatility, achieving such high degree of accuracy on the shorter time frames is going to be a mission impossible, in my view. That's really playing with noise, not signal.
 
You must log in or register to reply here.
Back
Top