Sunday, 16 October 2011

Trade Closed - EURCAD (+17 bps / 0.7R)

Entered EURCAD short around 1.4060 for reasons outlined on the chart.




Shorted into the most bullish candle of the day, and with the top of the range (and buy stops) so close it seemed a blowout was on the cards, but somehow price found resistance around 1.4080.

Entry time was around 2am Thursday. The US session was getting old and I was tired after a long week...not a great time to be making decisions. I was concerned that we were range bound and had not hit ATR , but on balance decided to enter for the reasons outlined on the chart.

Quite a stressful trade due to the proximity of the range, and the fear the top might blow. I watched the trade way too much, and must remember that watching won't change the outcome.

Stops were placed well through the top of the range to avoid potential fake-out, which meant RR was only 0.7. First profit was taken at +36 pips to reduce risk to 170 bps, then balance was closed on post-data momentum move around 3SMA low at +64 and +78 pips. I had intended to leave a 1/3rd runner, but decided to book it instead. I am finding it tough to leave runners on for fear of giving back profit, and must overcome this fear in order to leave myself open to the occasional home run.