GBP short - 120 min.

[Tony Beckwith]

Hi everyone

Let's see how this GBP/USD short on the 120min. chart does...

Major sell set-up (not Intermediate) - definitely worth watching for Major set-ups on forex charts, as the recent trading history of GBP shows...

Thanks

Tony.

[Tony Beckwith]

Currently over +8x profit, using MTPredictor standard trade management guidelines...!

The protective stop is fixed 1 pip above the high of the 1st bar to close beyond the 1st profit target.

A 1 lot - US $100,000 base size - short (keeping the initial risk below US $400) is now making over $2600...

Remember - the MTPredictor Pip Value Calculator is here: http://www.mtpredictor.com/pricing/pip2.html

Thanks

Tony.

[Tony Beckwith]

Helps if I post the right chart...:D

Thanks

Tony.

[ClaphamTrader]

Tony,

A great potential trade and in fact I got on it for part of the way for a small profit.:)

Did you trade this one yourself?
If so, then I'd be interested in what your StopLoss strategy was last Friday when the US payroll data was announced? The spike went up past the 1.8873 entry point and would've closed what otherwise could've been a fantastic 8x trade.

Do you have general strategy for payroll Friday's?

Regards,
CT

[Tony Beckwith]

Hi CT

I didn't trade this myself, I was alerted to it by another trader.

On the stop strategy, yes it had a huge spike up (within the drop) to the short entry point - however the standard trade management guidelines would keep you short as there's no stop movement from the initial point before reaching the 1st target.

Of course, if this were an EOD trade, Daily chart, once past the 100% initial risk level the stop would be lowered to break-even and you would be out. Not in real-time trading, though...

BTW if using the ATR stop, exit would be at 1.8806 for a +2.1x profit

Glad you caught some of it!

Tony.

[ClaphamTrader]

Hi CT

I didn't trade this myself, I was alerted to it by another trader.

On the stop strategy, yes it had a huge spike up (within the drop) to the short entry point - however the standard trade management guidelines would keep you short as there's no stop movement from the initial point before reaching the 1st target.

Of course, if this were an EOD trade, Daily chart, once past the 100% initial risk level the stop would be lowered to break-even and you would be out. Not in real-time trading, though...

BTW if using the ATR stop, exit would be at 1.8806 for a +2.1x profit

Glad you caught some of it!

Tony.

I assumed the standard trade management guidelines would apply to real intraday trades i.e. ones opened and closed the same day.
In your view should these guidelines apply to anything below a daily bar trade?
Personally I do not feel comfortable leaving money on the table 3 days into a trade with 3 or 4 R in notional profit and hence brought the stop up, especially with payroll Friday coming up.