Long time no update. To be honest It’s just been difficult trading my macro account. Fortunately an opportunity presented itself, so I should finally be able to start slowly funding my account by the end of this month or sometime in February! Very exciting. Currently I am still trading but have taken a break from my system 14. Right now I’m taking a semi longtermish approach.
The first trade I took at the end of last year on December 31st. According to Oanda I entered at around 12:30 p.m eastern time. I Short USD/JPY on some news that came out. Basically I read a report about how the police in New York City where handling crime because of the bs the mayor pulled. Basically, arrests in NYC have fallen by 66%, traffic violations by 94%, and other violations by like 96%. After reading this, I was under the impression that this situation is far from over and that the riots and anti police movement is still going to escalate further. So, with that in mind I saw a future devaluation in the USD, so as a result I shorted U/J.
I have been in this trade for roughly 10 days now and have seen my account fluctuate from +160 pips to -100 pips. This trade I had in mind a 2:1 Risk to Reward Ratio and my original stop was at 122 or so. I entered at 119.78, so with that in mind I have a take profit at 115.34. Although I have seen my account go from positive to negative, for the majority of the time my trade has almost always been green minus the first few days. Currently I’m in profit at +125 pips. My goal with this trade is to hold until the trade clears or get stopped out. I refuse to close the trade early and would rather lose than take anything less than 2:1. If I am 10 - 20 pips from my take profit I may exit but I’m really trying to test this new theory I have I read up on a lil while ago posted by one of our FX Honorary members Meuhua if I remember correctly.
Now onto my Second trade. I entered EUR/USD Long last night because I was really surprised to see it had come back down to 117.50 or so. It’s been over a year since it has hit that price if I recall correctly. This seems like a perfect time to buy EUR/USD. Not to mention it lines up with my future decline of the USD I am already profiting from. EU on the otherhand, instead of a 2:1 Risk to Reward Ratio, I decided to go 3:1. Higher probability of the trade hitting take profit over the long term if I continue to trade this particular style. The whole point of this new style of trading is not news based. Rather its random entry and direction (although I do kinda like to try to pick the more logical direction based off a little news), so pretty much its kinda like guessing. However guessing is irrelevant if I continue to trade the exact same ratios after these trades win or lose with roughly the same stop and take profit sizes. Long term I have a higher potential to continuously take more profit than loss assuming I risk correctly. Now back to EU…
EU I entered long at 1.18066 and am currently up +30 pips. My stop loss is located at 1.17 and my take profit is located at 1.22. Much like UJ, trade length is totally irrelevant and I refuse to exit, rather I want to get stopped out or hit my take profit. Hopefully these trades clear in by the end of the month but there is no guarantee. In the meantime, I don’t mind I feel as if my new approach is less risky and I like being in trades for days to weeks and be in the green. It’s hard to lose money if your account is always growing and you do not enter new trades until you have profited or lost from the current ones. Will be back periodically with an update, although it may not be every day since it’s not entirely necessary. I do intend on hopefully posting some charts of what the setup looks like.