“Huck loves her bucks!” I always say. The problem, of course, is how to make those bucks!! In this blog, I'll be posting my adventures as I traverse the forex world, while trying to catch some pips along the way. To do this, I will make use of classical charting methods as well as develop my own HLHB Trend-Catcher
Remember what I said about Trend-Catcher trades which are left open over the weekend always closed as winners? I think I jinxed it! The last signal that I pointed out last week (long at 1.2234) turned out to be a 7-pip loser. Boo!
But, I have to say that I'm pretty happy with how the Trend-Catcher performed. Despite EUR/USD being in consolidation for the most part of the week, it still closed with a 7-pip win.
Here's a breakdown of the trades:
1. Short at 1.2227. Trailing stop hit at 1.2225. -2 pips.
2. Long at 1.2239. Closed due to new crossover at 1.2282. +43 pips.
3. Invalid short signal since RSI did not cross 50.
4. Long at 1.2288. Closed on new crossover at 1.2275. -13 pips.
5. Short at 1.2275. Trailing stop hit at 1.2266. +9 pips.
6. Invalid long signal since RSI did not cross 50.
7. Short at 1.2272. Trailing stop hit at 1.2279. -7 pips.
8. Long at 1.2281. Closed due to new crossover at 1.2258. -23 pips.
9. Short 1.2258, still open...
Having a 50-pip trailing stop in place kept my losses limited. Also, the RSI did a pretty good job filtering out fakeouts too!
Now, for the not-so-good part...
GBP/USD
The long GBP/USD trade that I took last week closed as a loser!
It seems that my prayers were heard and GBP/USD was able to trade past resistance around 1.5670, triggering my orders to go long at 1.5690.
The U.K. retail sales report came in worse-than-expected but I chose to keep my trade open after finding out that bad weather weighed down consumer spending during the month. I adjusted my stop to 1.5620 from 1.5600 though. And boy am I happy that I did!
Risk aversion brought about by concerns from the euro zone kicked in on Friday. Consequently, higher-yielding currencies, including the pound, traded lower and stopped out my trade.
Long GBP/USD at 1.5690: stopped out at 1.5620, -1%/ -70 pips
USD/CHF
While I give myself a pat on the back for managing my GBP/USD trade, I'm not ecstatic about how I handled the one I had on USD/CHF.
I took this short USD/CHF trade a couple of weeks ago following the release of the FOMC minutes. Confident that risk appetite would continue to dictate market sentiment, I also kept it open for a few days when I saw that the pair had formed a tweezer top as well as a handful of dojis on the daily timeframe.
But as I said, risk aversion came into play and boosted the dollar. I could've minimized my loss if I closed it on Friday when it made a new high. Drats!
Short USD/CHF at .9809: stopped out at .9909, -1%/-100 pips
There ya have it, folks! I'm not really the happiest chick in the forex hood but I'm hopeful that this week will turn out great.
XOXO,
Huck
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Related Posts:
- HLHB Weekly Update - July 16, 2012 00:58 16 July 2012
- HLHB Weekly Update - August 13, 2012 00:08 13 August 2012
- HLHB Weekly Update - June 25, 2012 23:50 24 June 2012
- HLHB Weekly Update - April 10, 2012 00:09 10 April 2012
- HLHB Weekly Update - May 3, 2013 00:47 03 May 2013
