Starting to day with the hourly chart on one of my live accounts you can see a drop of 100 pips on EURNZD, the FIB LINE 61.8% is our target (just above). STROBOT predicted the fall yesterday in fact and entered the trade @ 21:35 GMT yesterday evening, the pair bounced back up but kept within our stop and has now broken down. Target is a lovely 228 pips.
Here’s the 15 minute chart.
As you can see it’s a great entry and STROBOT has come out of the turn rather nicely.
UPDATE GOLD STAR TO STROBOT
STROBOT just TP’d this trade for 228.10 PIPS Awesome, the pair has now started to bounce back of of the 61.8% fib level.
So STRobot did brilliantly yesterday with some wonderful GBP trades.
GPBJPY and GPBUSD were both bullish trades.
This new version of STRobot shows the trades on the chart.
These would have been bigger trades but at the moment we have gone into “FOMC sit and do nothing” mode when the markets just hang around. It’s a dangerous time to trade this brings me to the problem of stops.
This kind of hanging around in the market is really hard to trade – I recommend the following options:-
– Go flat and don’t trade till 2 hours after FOMC
– Drop your lot size down to something small to reflect the risk. If you get a zillion pips with a small lot size great, if you lose 40 pips fine.
– Keep your stops small – STRobot has now gone down to 40 pips.
Now we wait for 7pm when all hell breaks loose. Really the pain starts a day before in fact from last night at about 10pm GMT. It will be over soon thankfully.
Okay so you know yesterday I noticed there were quite a few people on stocktwits who were saying “buy here EUR”, I understand why but we had broken support and I have a rule that if it breaks through support, even if it pulls back wildly it WILL go further down. (or up depending on the pair).
My EURUSD trade is safe with my stop moved inside my entry so I’m now waiting for pullback to complete. I would expect it to pull pretty much back to the last support that it broke before moving further down.
There may be some GBP movement later with news @ 9:30 – forecasts are not good and I have my entry orders in the secret spaces.
If you would like to learn to trade get my charts on YOUR metatrader 4 setup http://www.strobot.co.uk
Ok so here is the GBPCHF that broke down, my entry order went in at 1.52786 and then I closed my trade for the weekend 100 pips up. I want another trade short on this pair *BUT* it needs to break through two levels of support. I had a good week last week with 144 pips profit for the week.
Most of those were robot trades and a couple where I used the system to do manual trading as you have been reading.
The robot doesn’t actually place that many trades.
Have a great weekend every one see you Monday and don’t forget to register for the webinar! 🙂
I guarantee that you have never seen anything like this when trading with MT4. Robot and Manual trading support and resistance
The Forex works shifts. If you place a trade during the day GMT (EUR/USD session) it will pull back on you during the Asian session. If you place a trade in the Asian session, guess what, it will pul back on you in the EUR/USD session.
Thus, small traders regularly get stopped out overnight if their stops are too small.
The Problem with Stops
Stops are a problem. Sure, you don’t want to wipe out your account. But also you don’t want to have your stop so close that the pair cannot get a proper direction. STRobot for instance uses ATR + a moving average to calculate stops. This means the stop is appropriate for the mood of the market on that pair.
In this case check out the white dotted line, that is where STRobot and the SignalTrader Forex trading system would hold the stop.
To find out more about the SignalTrader Forex Trading System & STROBOT please http://www.strobot.co.uk < CLICK HERE
I do have a slight confession to make, all the trades I post here are actually trades that my robot has set up. STRobot is part of the SignalTrader Trading System. I have just released a new update that shows your trades in PIPS here are the two accounts I’m running STRobot on.
This is my live account in fact these are all STRobot trades.
You can see that only one trade is going against me and I have 4 “SAFE” trades, when a STRobot trade moves 30 pips in profit the stop is moved inside the entry thus the trade is no longer a risk.
My Demo account (with the same Broker!!!) You will notice that there are fewer trades, that’s because some of the major currency pairs are simply missing!!! Demo accounts ae not the same as real accounts and trading them is not either! If you would like to find out more about the STRobot and SignalTrader Trading System please Click Here
AUDCAD and GBPCAD long are doing ok, not a huge amount of movement so I’m up only 23 pips GBPCAD and 13 pips AUDCAD so far today but that is to be expected, the Canadian dollar continues its weakening and cable and the ozzie are getting stronger, but it’s slow, probably because of NFP tomorrow.
EURJPY is an interesting short, it’s broken the daily 200 ma and bounced back up to it but looks like it is bouncing down away from it again, confirmation provided by an evening star. So I’m looking for a nice bearish rally very shortly as the EUR has been dropping in strength for nearly 48 hours.
Here’s the EURJPY short chart.
Followed by the AUDCAD which is still rolling along although GBP doesn’t seem as keen as AUD to break up.
Finally here’s the GBPCAD chart.
If you are interested in getting your own STROBOT please visit http://www.iwanttobeaforextrader.com (new window)
NZDCHF had a fake cross and the new zealand dollar dropped through the floor and is now lying dead in the ground. It’s the blue line at the bottom of the SignalTrader Forex Trading System chart.
Anyway – AUDCAD looks really great and the robot has put a target of 1.02890 which makes sense to me but we have to break resistance @ 1.01945 but the trade will be safe by then (the stop moved inside the entry).
EUR GDP news @ 10 should be interesting, the markets are holding with bated breath to see if Draghi lowers the interest rate, if he doesn’t the markets may react badly because they think he should, if he does, the markets will react badly, however for the last two or three days the EUR has shown strength returning to fair strength at 50%.