Hello traders,
Here is a trade that closed today. With the retarded changes in the NFA rules, I was playing musical brokers, trying to find a broker that would offer any sort of decent leverage for these pivot strategies. I was thankfully able to secure a live micro account at FXCM UK and I am very happy with it. Hopefully the Brits maintain their sensibilities when it comes to regulation of the forex industry. I can finally start trading some pivots again!
I could trade pivots at a US broker with a max 100:1 leverage, but it is riskier because more capital goes to margin and I would have less of a buffer to stay in a trade. It’s kind of ironic, less leverage being more risky, but it is true for me in this particular case.
This was a nice one, somehow I knew it would work out. Even though I had a strong feeling about it, I have to always stick with the guidelines of the trade to maintain consistency. It is a classic Rob Booker Monday Accelerator Trade in the GBPCHF. Basically, I look at the pair as soon as Monday starts and I trade it back to the new weekly central pivot point. Here is the chart:
I love Mondays! (click above for larger image)
The blue line is the weekly central pivot point. I stacked 22 lots from 6580 to a target of 6630 at 5 pip intervals for a grand total of +469 pips and a +9.4% increase in the account. Not bad for a days work, can’t wait until next Monday!
Note: Obviously this is a very, very, very risky strategy and you should backtest it before trying it in a live account. This information is posted for informational purposes only and is not meant to be advice of any kind.
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Dear Hugh,
Hye,
great trade.
I trade Rob’s Vortex method; I’m sure you know about it, as it is anther pivot based trading method.
I’ve looking for this method for quite some time but no luck. Would you please be kind enough to explain the rules of entry n exit and anything else that might help.
no detail is too much.
Best regards.
Hi Sheraz,
Thanks but it wasn’t something that I got any hard and fast rules for. In addition, I don’t even trade this method any more so I wouldn’t feel right giving out any rules anyway. However, I would like to help you as much as possible so if you trade the Vortex, this trade is very similar. You would target the Weekly Pivot + a buffer. So for example, you could target +/- 20 pips from the Weekly Pivot. You could do a stack from that point, like with the Vortex. Of course, backtest this trade with all historical data available before ever trading live. Be sure to cancel the open orders on Thursday or Friday if your trade doesn’t happen. Hope that helps!
Hugh