April 14, 2010 – GBPCHF Acclerator Trade

Written by Hugh, on April 15th, 2010

Through my backtesting, I have discovered that the Monday Trade, otherwise known as the Monday Accelerator Trade works pretty well on Monday-Friday, so I’m just going to start calling it the Accelerator trade.

Here is the 1 hour chart:

Click above to enlarge

After having two losing trades prior to this trade, I decided to be a little more conservative and target 30 pips away from the previous day’s daily pivot. This week, I decided to keep a closer eye on these trades and I was watching this pair with mouse in hand.

Price shot up and opened all of my positions. Then price spiked down and hit the current daily pivot and that scared me into taking the loss. Here is the 5 minute chart:

Click above to enlarge

Price then immediately proceeded to race to the target. As you can see in the previous chart, price also hit the Weekly Pivot later in the week.

The total loss was -3.1% on the account. It was not too bad of a loss, but it would have been profitable if I wasn’t watching it so closely. In hindsight, it wasn’t even that big of a retracement. I have been successful with this trade up until this point by not watching the charts closely and that was my mistake this week.

In addition, I also made the mistake of getting down on myself and not targeting the Weekly Pivot on Thursday. That trade could have easily made up for all my losses earlier in the week. I have noticed that this is my biggest weakness, letting a few bad trades blind me to the next opportunity.

So next week, I am going to go back to NOT watching the charts so closely and just let the trades rip.

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