Well played, OPEC! The oil mafia made an offer that Loonie bulls couldn’t refuse, causing NZD/CAD to drop. Thank goodness I made some adjustments! In case you’re wondering what I’m talking about, make sure you review my initial trade idea first.
In my latest blog update, I mentioned that I rolled my stop up close to entry in order to have a risk-free trade ahead of the OPEC decision. Even though price appeared to be bouncing off the floor near my entry at the 61.8% Fib an rising trend line, I didn’t want to leave it all to chance in case the cartel decides to cut production.
And cut they did! As Pip Diddy shared in his U.S. session recap, OPEC members agreed to lower output to 32.5 million barrels per day for six months starting January in an effort to curb supply and stabilize the markets. This could keep the oil-related Loonie supported in the next few months so I’m glad I was able to hop out of this long position scot-free and with a bit of carry.
In hindsight, I could’ve scored a few more profits had I been able to close around the .9600 levels before the OPEC announcement was made. However, I wasn’t sure exactly what time the decision would be announced and it was tough to tell whether or not my fingers would be quick enough to close early if necessary. Because of that, it made much more sense for me to just move my SL on this position instead of having to worry about volatility.
Here’s what I ended up with:
P/L: +5 pips / +0.03%
Yep, I know those are measly gains, but I’m still pretty happy how the positive rollover accounted for nearly half of those profits. Got any comdoll trade ideas you’d like to share? Post ’em right here! And don’t forget to check out our risk disclosure when taking any of these setups.
See also: Q3 2016 Trading Performance Review