Strong global risk-off sentiment has pushed safe havens higher and my GBP/CHF short to its max target, closing me out at 1.4000. Here’s a quick forex trade review!
Original Trade Idea: Forex Trade Idea: GBP/CHF Downtrend Pullback
Another day, another push lower in risk assets thanks to the usual story of lower oil prices and global growth fears push forex traders into safe havens like the Swiss franc. And today, we got that extra push lower thanks to a very painful day in the Asian markets with Japan kicking the off the selling, which flowed into the European equity markets. This was enough to get my short position to its final destination at 1.4000, where the trade was automatically closed for a profit.
Total: +709 pips/ +0.48% gain on 0.25% risk
Overall, this was a pretty textbook technical setup that went along well with the potentially dovish U.K. economic catalysts I pointed out last week, and was luckily helped along by the sudden shift back to risk sentiment in the global markets last Friday. The only thing I wish I did differently was go bigger or add to the position as it went my way. For educational and risk management purposes, I intentionally keep the risk very,very low for my forex blog. But with my current win rate improving (57% in 2015 & 75% so far in 2016) I think I may notch it up a bit going forward.
With this trade closing, that leaves me with my AUD/CAD short and NZD/CAD long, with the former increasing in profit steadily and the latter kinda hanging just under my average breakeven levels. I’ve already rolled down the stop on AUD/CAD short to breakeven to create a near risk-free trade, so I’ll be watching NZD/CAD closely to make my next adjustment/update soon. I’m also looking out for a new setup to play this recent shift back to risk aversion mode, so stay tuned by following me on Twitter and Facebook!