Entry still needs work. The original level 0.9417 was hit outside trading hours, so I waited for SPI to open at 10am Sydney. At this time I immediately hit 0.9407 bids, which was a bit desperate. A cooler head would have waited for further confirmation on the lower time frames and got a better fill (we traded up to 94.26 in the next hour). Stops were place 20 pips through X at 0.9458.
The worse entry meant smaller position and cut about 20 bps from performance, so while this was a good trade, it could have been better. On a positive note, I'm pleased I took the trade at all, as I was losing on the previous EURCAD at the time. Shorting USDCHF was essentially doubling my EUR exposure when the first positoin was failing, so I'm pleased I put my fears of double loss to one side and traded what I saw.
In contrast to the previous EURCAD, I felt comfortable with this trade throughout. I was selling short term strength in an obvious long term downtrend with a clear QM. Price had not retraced to 0.382 on the weekly, so it would have been a tough trade psychologically for many to take, and I was happy to attack the bottom pickers.
I suffered a 20 pip draw down before the trade started moving in my favour, then got a retracement through break even, but thankfully was not watching at the time. In fact, I haven't been watching my trades much lately as I've been busy with a new job. I have found the distraction helpful.
Exits were planned for 0.9297, just above an H4 bullish bat, but I covered early at 0.9325. I was tossing up the decision. Was I being weak not going for the last 30 pips, or was I being greedy? I kept coming back to "The odds overwhelmingly favour quitting early". I was at 1.87R, it had been a good trade, it was half an hour after London open...a time I would ordinarily look for reversals, so I covered. R/R goals had been met (1.5R), so it made sense to leave. Subsequent price action (below) seems to have validated the decision.
