Entry was uncomfortable. CAD was under pressure. EURCAD had broken out, and GBPCAD was rallying on London open. It was hard to fade, but I had an H1 bat with QM after a weekly 3SMA touch, so entered short at 1.5936, just 10 pips away from "X"...gulp.
Absent from the set up was a broken TL or smaller TF pattern, and the PRZ on the H1 bat was wide (1.5920-40), meaning I was never fully at ease with the trade.
From entry we traded up to "X" at 1.5948, and things weren't looking good. But surprisingly we weakened to 1.5920 (+0.3R), before a sharp rally into US open and took price to 1.5975, just 4 pips shy of my 1.5979 stop. It was nerve wracking, but somehow I stayed in the trade. After narrowly stopping out on a recent EURCAD (below), I decided to place stops on exotic pairs further through "X" (30 pips). Doing so saved me on this occasion.
Shortly after US open CAD began outperforming, driving my trade to break even, at which point I exited. The trade had been troublesome from the outset. Many of the original reasons for the trade had been violated, so I used the next best opportunity to escape. It reminded me of this AUDCAD trad http://modoforex.blogspot.com.au/2011/10/trade-closed-audcad-short-10155.html
In the morning I woke to find price had continued in my favour, but I was comfortable with the cutting the trade, and thankful it did not hit my stop. Price didn't reach 1.5R before returning to entry, so break even is the best I could have achieved.
