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Here is another nice little London Trade.
Price hit a previous resistance level at the beginning of the London session, accompanied by and overbought situation on the Stochastics.
I actually entered a little late because I missed the true reversal pattern.
As you can see on the chart, I exited both positions way too early and missed out on another 90 pips or so.
Why did I close them out early? Again, it was because I being too conservative. If I had followed the plan that I have been backtesting, it would have been a good trade.
Instead, I ended up with only a +1.0% gain on the account.
Another improvement I could have made to this trade was not doing the buy to hedge the position in the middle. I don’t know what got into me, but in the middle of the trade, I decided to do a buy to hedge the initial position.
As soon as I saw that price was not going to go my way, I closed the buy and put on another sell. Not putting in the buy would have given me about a 50% greater profit than what I made.
I really have to iron out the kinks in this system and trade it the way I have been backtesting it. The results of this trade should have been much better.
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