M5 bat/TL break/QM combination on London open gave permission to re-enter the h4 setup from the previous post. Although I still had concerns, entry requirements had been met, and execution was good.
Price immediately moved 30 pips in my favour, then rallied 60 pips against, taking out the previous day's high and confirming my fears. At this point I was -35 bps and felt price would run through stops at 1.0050 and up to the H4 bearish crab 1.0170. As such, trade management turned to damage control.
To my surprise, we found resistance at 1.0040 and traded lower into Friday's close (and IQM), at which point I covered 2/3rds of the position at +20 pips, reducing risk to 20 bps (from 100) ahead of the weekend on what I thought was a dog position.
Turns out I was jumping at shadows...again. Monday saw further dollar weakness on the back of Bernanke comments (thanks Ben), and USDCAD continued lower. The remaining 1/3rd position was covered at +60 and +73 pips, for a total gain of +47 bps at 0.47R. Obviously, this RR is not great. I would have made at least 100 bps had I stuck to the original limits, but I'm satisfied with trade management as there were enough warning signs to warrant a defensive stance.
