This trade went my way and I’m pretty thankful for it. I respected what I thought was the interweek trend direction for each pair. I made 55 pips on EURUSD and 20 pips on USDCHF. Either I was lucky or right. The question is, how do I know if I’m right?
I’m trying to stick to my Forex Trading Script but I’ve noticed some things that need changing. For one, I need to really be aware of the upcoming economic calendar.
For example on the EURUSD chart below. Do you see all the economic news that came out over the week? That stuff moves markets but how much and does it respect the short, medium, and long term trends?
These are all interesting questions that I must ponder. I expected more action over the week in USDCHF but was disappointed. I guess I could calculate it’s daily volatility but I’m trying to keep this system simple. Still, I made some money. Too bad my trading size was small.
That’s another thing I need to work on, an optimal trading size. Both these trades were for 100 units, which made me a total of $0.70 in gross profit. That’s about 0.50% rate of return in 5 days. Not too shabby when you think about it but the question is, is it repeatable?