Thursday, June 21, 2018

Scaling in 1/4, 1/4, 1/4, 1/4

The trading style here is not an all or nothing mentality.  As long as there is flexibility about the zones you are intending to get in, thats fine, the market is not going to stop at a dime and turn completely in your favor.  



Here's what I mean by this, The first buy point at 1.31920 and second at 1.31314 were my chosen long entry areas.  I was willing to take risk between 65 pips of territory while keeping my stop fixed at 1.31.  The risk reward was still close to 1.5 to 1 or 1.1 to one but thats fine, lately we have preferred higher accuracy trades.  (the draw downs on CaD were ugly) 

It may seem like I added to a loser 3x but thats not the case.  Each blue arrow marks where I took a long position in the GBP, I was also very close to having my stop taken out.  At the time I was floating a moderate sized loss but it was not bringing my average entry too far away from my stop.

Of course, I don't know how the exchange rate will react to news but it definately worked out in our favor and we closed near the resistance at 1.32617

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