Comments on GBP/USD trade I entered.

Discussion in 'Forex' started by uninvited_guest, Oct 9, 2005.

  1. This is a live trade I just entered, 10k each. Maximum loss is $20.00, maximum gain is $20.00. Hoping for a strong move in 1 direction for a $10.00 gain, then cancel the unfilled order.

    * GBP/USD presently at 1.7600.
    * 5 pip spread.
    * Enter to buy at 1.7625, stop at 1.7615, limit at 1.7635.
    * Enter to sell at 1.7575, stop at 1.7585, limit at 1.7565.
    * Time entered 6:27pm EST.

    I will update once trade is closed. Anything I missed?

    good boy, UG. :D

  3. What plans do you have for the cash if you make the whole $20?
  4. Short position got taken out at $10.00 loss. Came within 3 pips (+ $7.00) of limit, close but no cigar. With a 5 pip spread and - 10 pip stop not much room for position to breath once open. Long position still on the books.

    This is a good sort of trade to enter and then go do something else. Just need more momentum in 1 direction.
  5. losing feels good, doesn't it?

    at this rate, you can trade for 50 years - just get chopped to pieces slowly. :D
  6. Only $10.00.

    I have never entered this sort of trade before. I didn't think you could enter a trade to be executed at a certain price, until it was pointed out by another poster.
  7. * The short position got taken out within 3 pips of limit.
    * Then the long position also got taken out within 3 pips of the limit.
    * Total loss $20.00.

    The orginal spread of entry for both legs was 25 pips but the momentum wasn't enough for that extra 10 pips before a retrace though the stops.

    Looking back it looks like the stops were set too tight. As of this time the GBP/USD is at 1.7530.
  8. 1/4 tank of gas.
  9. cable


    That's today. By tomorrow, it'll probably only be 1/5 of a tank of gas. :(
  10. You've mentioned that your dealer's GBP/USD spread is 5 pips. Therefore, by placing this type of +/-10 trade, you are effectively making a very short-term bet on price action. A bet that, once your entry is triggered, cable will move 15 pips in your favor before it moves just 5 pips against you. Unless you can consistently achieve accuracy of over 75%, generally that's not the kind of trading strategy you want to pursue.

    Further, given routine cable price action and sub-hourly volatility, achieving such high degree of accuracy on the shorter time frames is going to be a mission impossible, in my view. That's really playing with noise, not signal.
    #10     Oct 10, 2005