First, take a look at the trades my HLHB Trend-Catcher took:
1. Long at 1.2936. Closed due to new crossover at 1.2900. -36 pips.
2. Short at 1.2900. Closed when 50-pip stop was hit. -50 pips.
3. Invalid signal since RSI was already above 50.0 prior the crossover candle.
4. Invalid signal again since RSI was already below 50.0 prior the crossover candle.
5. Long at 1.2872. Closed due to new crossover 1.2 863. -9 pips.
6. Invalid signal since RSI was already below 50.0 prior the crossover candle.
7. Invalid signal since RSI was already above 50.0 prior the crossover candle.
8. Short at 1.2895. The trade is still open…
The system didn’t catch a single win for the entire week, as the trades were either losing or invalid. The only good news was that the trade left open the week prior closed with a small profit. It bagged 54 pips which brings down the net loss (in pips) for last week at -41.
I was so excited when I spotted the potential head and shoulders setup at the start of the week. However, when price missed my trigger at 1.6270, I got too aggressive and sold at a much lower price. Gah! Had I only been more patient, my initial sell order would’ve gotten triggered and I would’ve already taken profit on half of my position.
Ultimately, I think my biggest mistake on that trade was that I didn’t give it enough room to move. The upward revision to the U.K.’s Q2 2012 GDP to -0.4% from -0.5% as well as the announcement of Spain’s budget plan caused an upward rally on GBP/USD that stopped me out.
I’d be lying if I said I’m okay. So this week, I think I might just sit on the sidelines. That still depends on whether or not I could find a good trade setup though. But for sure, I will be patient and not force any trade.
I hope you guys had a better week than I did. Keep in touch!