RATE OF RETURN NOW 13 0 ON SMALL AUD CAD TRADE - forex odyssey trading system

RATE OF RETURN NOW 13 0 ON SMALL AUD CAD TRADE ~ forex odyssey trading system

This trade was intended to take advantage of a sharp breakout short from a Pennant Consolidation, with the target set for its Breakout Equivalent. All Consolidations have Breakout Equivalents (B.E.) - it is the area that they break towards before pulling back. They will either pause here to then resume the trend or become volatile and reverse. Nevertheless, once spotted and measured accurately, one should either be exiting your trades there (see the AUD USD 148 Pip Trade and the AUD NZD 70 Pip Trade) or avoiding entries at these areas altogether.

In this instance, the pair had already broken out from a previous Range and was now breaking a Pennant. 



DAILY CHART - AUD CAD

(FXCM Charts used for Trade Signals- Dukascopy used for Live Trades)

Based on the way I had originally measured the B.E. for this Range, it would not be hit until a few hundred pips. However after analyzing the chart again for confirmation that my Entry Setup was correct, I realized the error and exited immediately. This provided only a small gain of 9,6 Pips, but was much better than what would have taken place if it was left any longer.


This was the entry setup on the 4 Hour Chart. It required waiting on the market to pullback so that my Stop Loss would have met the criterion in the strategy.


4 HOUR CHART - TRADE SETUP

Entry then took place as the market pulled back to trigger the entry but shortly after, I realized that this B.E. was actually at the Entry Price of my trade.


DAILY CHART

Luckily I was able to come out before the rally took place, which would have taken out the Stop Loss.


DAILY CHART- PULLBACK

Following this trade which pushed the rate of return to 13.0%, my Subscribers are still 9 trades away from a 100% return.

RATE OF RETURN FROM METHODOLOGY

The FXCM Demo Account that you will see in MyFxbook does not reflect this trade. The entry order was not triggered due to the natural differences in prices that takes place across trading platforms.


Mistakes like these are par for the course. Sometimes they lead to large losses, but sometimes you get lucky with only a small loss or gain. It can be very difficult to exit a trade that has the potential for large gains. However, this is perhaps the best trading decision that one will make when large sums of your funds or those of your clients are at stake.

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Duane Shepherd

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

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