Having said that, execution was poor. Entered at 79.22 with an m5 bat, having missed the initial setup due to an existing NZDJPY position. Reasoned I would have been set the previous day, and with further confirmation of m5 bat/qm/tl break, was acceptable to "pay more to know more". However, I broke the time of day rule AGAIN, entering 30 minutes before FTSE open. It didn't make any difference to the entry price, but I'm not happy about it. In hindsight I was rushed, chasing losses, and emotional. Not good.
The trade itself was the best looking I'd seen in a while, and indeed we saw a good reaction from the level, moving 70 pips into the money from the stated 79.50. Had I executed correctly, the trade would still have been a loss but, I would have hit T1and reduced the loss to 18 bps. As it was, I missed T1 by a couple of pips. The pair looked like breaking on a number of occasions, but failed. I was tempted to close early for a profit, but decided to let it play out for fear I was jumping at shadows. Despite the result, I am pleased with this decision and my patience on the trade.
As with the previous NZDJPY trade, we took out the previous week's low on Monday morning, then proceeded to rally ever since, eventually stopping out at 79.89 on the back of good Chinese data and a strong equity rally (Shanghai +4%). Total loss on the trade was 28 basis points, 3 of which was interest charged.
Overall, I'm happy with the setup, but not the execution. The last month has been difficult, with each trade moving into the money, but failing to follow through. Almost every Yen pair has fallen hard, but Kiwi and Aussie were supported via the crosses. My last full winning trade was two months ago, and since then I have given back 60 basis points in performance.
It sux to lose momentum after a good start. The risk is I get sloppy with trade selection and execution (already evident to an extent). I must concentrate on the process rather than the outcome, work methodically, be patient, and focus on the small things. The account is still in the black (+18 bps), and if I stay cool I can recover.
