EURO CAD provided us with a smaller-than-expected but positive result on Tuesday, due to the lower liquidity conditions of the Christmas Holidays. Our original target of 150 Pips could not be met under these circumstances, requiring us to exit for 74 Pips at the end of our specified Holding Period. Nevertheless, the strong gain had a significant influence on our overall Rate of Return, which now stands at 27.4% since July of this year. With over 500 Pips from only 9 trades, we are only 3 trades away from the 1000 Pip mark and a 50% Rate of Return. After meeting this short-term target, we would then need only 4 more trades for a remarkable return of 100%.
This pair began to decline following a False Breakout Reversal at the Resistance of the Range on the Daily Chart. As with all False Breakouts, a move to the end of the boundary was expected.
DAILY CHART |
| FXCM used for Entry Signal based on the New York Close Candle |
The move was also taking place within a Downtrend that started with the break of the Trend Lines of the previous Uptrend.
DAILY CHART
The signal that we used to confirm that this trade should be taken was the 2nd bearish candle as it was deemed to be a Normal Candle- the Candle that we obey for our entries (Section 8 - “Consolidation Trading on the Forex Market - A Complete Trading System”). After determining that it met our criteria for trading within Consolidations, our Entry Setup was done on the 4 Hour Chart...
4 HOUR CHART
An Entry Order was used in this trade as a Market Order would have required a Stop Loss that exceeded our maximum of 90 Pips for entry based on the 4 Hour Chart. After pulling back to trigger our trade, the market then meandered sideways over the next few days. With trading activity and liquidity limited, we exited for the 74-Pip gain at the end of our Pre-Determined Holding period.
DAILY CHART - LIVE ACCOUNT RESULT
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| Dukascopy used for Live Trades |
With this latest trade, our Rate of Return table is now closer to the mid-way point of our Medium Term goal of 100%.
RATE OF RETURN FROM METHODOLOGY
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| 5% Risk Per Trade, 100-200 Pips Target per Trade; No Trading done in August |
Summarizing these results, an average of 63 Pips have been made on each trade, supported by a fairly high rate of success.
SUMMARY OF RESULTS
These gains were due in large part to the last 8 trades, which steadily made up for the initial loss of 100 Pips that may have shocked my early Subscribers!!
SUMMARY OF RESULTS
The Demo Account which tracks the Live Account trades was not to be left out. The trade pushed the Return to 22% after only 5 trades.
DAILY CHART
DEMO ACCOUNT RESULT
Having started in October, the results on this Account are equally encouraging (verified at Myfxbook http://www.myfxbook.com/members/DRFXTRADING/duane/1079693)
RATE OF RETURN - FXCM DEMO ACCOUNT
SUMMARY OF RESULTS
The results from the Methodology at this stage bode well for what is possible within a few months time. By only targeting the highest paying opportunities that have a high probability of success each month, your chances of steady, long-term gains with limited draw-down are greatly enhanced. Nevertheless, given the inevitability of losses, we always need to remain confident in our strategy despite setbacks along the way. Once you have tested your strategy successfully on a Demo Account over a reasonable period of time (at least 6 Months), you can be more assured that the gains will outnumber losses by a reasonable margin. This will allow you to achieve strong Rates of Return over the Long-Term, with fewer losses.
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Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Contact: shepherdduane@gmail.com
Facebook: DRFXTRADING
Website: www.drfxswingtrading.com