Ok, so I did say I would provide an update.
After following the process I described in an earlier post, back in June I determined that Aussie dollar was strengthing, as was Kiwi dollar, and the euro was weakening along with Sterling and the Yen. Not at all rocket science to deduce that huh…
Anyway, I took a number of trades
BUY NZDJPY at 61.845 14/06/12
SELL GBPNZD at 1.96914 19/06/12
SELL EURNZD at 1.58624 19/06/12
SELL EURAUD at 1.24683 25/06/12
BUY AUDCAD at 1.03335 27/06/12
All these charts looked pretty ok at the time, but I’ll just just pick out the EURAUD as an example.
This was what it looked like when I entered the trade, on the 4H chart.
(direct link
http://i.imgur.com/n1siF.png)
Now this isn’t an entry out of the book. At the time I had wanted to enter on the break of 1.2523 a few days earlier on the 18th (I put an arrow above the candle that I should have entered in). Unfortunately, I missed that entry. But a few days later I entered after a retracement. I figured, I should have been in this trade by now, the conditions are still valid, so I just took it.I jumped on that train!
My stop was placed at 1.2620, (151.6 pips away) entry was 0.4 (micro lots). So I was risking around £60 which was less than 1% of my account, I think it was about 0.8%.
The trade moved perfectly, so lets talk about the exit.
I am a bit annoyed with myself with the exit. So a double bottom formed at 1.16. Now I know the Adam strategy says that we wait for price to break back above a swing high, and we tend to give back about 30%-40%. At the time I figured that price would have to continue to move substantially further than where it was, perhaps down to about 1.12, or 1.10, so that it could retrace back up to 1.16 and allow me to realise this level of profit. So, I very nearly closed the trade there and then.
Of course I didn’t actually exit! I wish I had taken my logic and listened to it! Instead, I stuck with the trade. I had Jesse Livermoore in my head saying
“It was never my thinking that made me the money, it was my sitting”.
So my exit wasn’t so good. I actually used some tramlines to decide my exit.
(direct link
http://i.imgur.com/0G43c.png)
It looked like the trend may have ended with the double bottom and the tram lines(I thought) confirmed that, so I had a stop in place which was hit in the last bar of this chart, while I was on the beach 
I got out at 1.1858.
Of the 5 trades, 3 of them broke even. 2 of those break even trades could have gone on to make some money if I hadn’t moved my stop to break even so soon, but there we go. But, 2 of the 5 trades were literally perfect, the EA trade described above and also a very similar EURNZD trade.
EURNZD sold at 1.58624 19/06/12, exit 1.52616 = +600.8 pips, profit £327.4 = 4.7%
EURAUD sold at 1.24683 25/06/12 exit 1.1858 = +610 pips, profit £270 = 3.8%
So, 8.5% gain risking 0.8% on one trade and 1.5% on the other. Not bad…
Now I am not in anything at the moment, but since it appears to work so well with Forex, I was thinking of expanding this and consider looking into equities, simply because it widens up the potential market. So, next week I’ll spend some time going over all the equities that my broker supports, so see what I can find…
