FX:GBPAUD British Pound/Australian Dollar
Trade active: Looks like I am running this long 1.7080. Happy Trading!!
Trade closed manually: Ok I pulled 50 off this and I still believe in this formation. I am off the last ones for break even as of yesterday and waiting to reenter. Will update next week. Thanks!!
Trade active: Ok I am on this again from yesterday at 16871 stop below the B low at 16700. This seems to be running. Let's keep an eye on it though.. I would take one off for 50 pips just like last time and keep it going.. I am break even now with 100 off.
Andrew, After a trade begins to run, I move the stop loss about ten pips below the u-turn. In the case of this trade, some of the institutions saw that right tip of the crown, and started to trade it and then another institution thought differently about it so obviously they reversed it and now price is lower than the left tip so I am off the trade. I have a couple of approaches to trading pairs when I get in ..If the trade runs to the north for more than 100 pips, I will typically take one position off and will pull to break even and just forget about the trade. If it does not hit 100 pips positive, I will remove it and wait it out and enter higher or lower. I don't like to take losses, but it is just a part of trading. if I don't have to take a loss, I remove it so in this case, I took about 50 pips off and just pulled it to break even and it took me off as it went down through the 17080 mark yesterday. There likely are still position traders who are in this trade with the stop loss pulled below the sub AB boundary ( the center tip of the crown). I still think we were looking for the market to head up another 800 pips from where we are now. So if the stop loss is not more than 1/4 to 1/2 of that pip total, we will be fine. I have to re-enter next week likely because I am not in now.
your stop loss is about 1/3 or less of your target price. I can't define stop loss for you exactly but my rule is that I never risk more than about 1/2 of a percent of my account.. the industry standard is about 3 percent, but that is an extremely individual number. I would recommend that you wait for the bull formation on this pair, and put the stop ten pips below the uturn if you want to minimize your stop loss. Many traders will try to risk less than 40 pips on most trades.