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Friday’s live trading – Charlie banks $610 this morning…

Charlie takes just one trade this morning but it is managed actively for an on target result. Charlie also shows some photos of his and Kym’s recent trip…

Hi this is Charlie giving you Friday’s live trading, I hope you’re very well.

I’m a bit late to the party today, it is 8.15am and I’ve only just got up and running.

What I’m seeing at the moment is the potential for a run down on the Euro. It’s been choppy overall but I can get in with a low risk entry so I’m just looking at what’s going on here.

We’ve got a little bit of negative momentum in the background on the hourly charts and we’ve got some untested support levels below us, so I’m going to attempt a short trade and put three units in. The first target will be at 1.14.

Let’s quickly get these stops in because it’s moving quite quickly at the moment.

The first target is 1.14, that’s the 8am pivot, but I’m going to try and hold on to it and see if we can go a little bit lower than that.

I’ll get the stops in at 1.1420. This could take a long time today but I’m looking at the hourly 50 as a target level. The hourly 50 is down at 1.1364 currently, so it’s got a bit of a way to run, but we’ll just have to see.

Obviously I don’t know if this is going to move down at all, that’s why I’ve only put three lots in. There’s a little bit of a mish-mash if we look at the higher timeframes. The trend overall is up so that’s why I’ve just put three lots in this morning.

We’ll see, I’ll press pause for now…

 

Just back, and interestingly we’ve actually just come right down to 1.14. it’s not quite hit it, the level that I was looking for, the 8am pivot, has actually been hit on the charts, so my support levels have actually been struck for that first target. If we get just a little bit closer towards this then I’ll override it and close out. I’d rather close out if we get a little bit closer towards it, but it has hit that double support level there so it’s just a case of it coming down a little bit closer towards it.

So it’s 02 that I’ve come out at, I’ve overridden that, just because we have hit it on the charts and it didn’t fill. Anyway, I’ve taken that one unit off so it’s starting to pay for the trade a little bit.

I’ll move the stop down just a couple of pips, it’s coming down a little bit now. It’s having a good little run there so I’m going to take another one off. We’ve come down to the five minute 21.

The trade’s running reasonably well so far, so now it’s just a case of seeing if it can get down to that 1.1360 area, which is still quite a lot of work to do. So we’ll just play a waiting game now and see what happens.

There’s really nothing else to do, so we’re looking at 1.1365, so another 20 pips lower. I’ll just press pause.

 

Okay, so it’s come down to some more support here, I’m still looking for the 65 but I’m actually going to take half off. I’m not entirely trusting on where this is going to go so I’m going to take half off here.

In order for me to take half, what I have to do is go long with 50,000, so effectively I’ve taken half off there by going long with 50,000. I can’t actually close half my ticket so what I’m doing by going long with 50,000 it’s like I’ve just taken half of this unit off.

By doing that, as price goes up then my little long starts making money even though my short is starting to lose some of its profits, my long is still making money. What I need to do is put stops against that long. The stops will be at 1.1366 and I need to put a limit order in at 1.1414.

So I’ve got my stop loss on my short at 1.1414 and I’ve got my target on my long if it was to go up. I’m just trying to protect the trade because I can see the potential for those levels to come in, but it’s a bit messy so I’m just keeping it tight.

What I might do is, if we do come down lower to that hourly 50, I could actually release the hedge and put in another quarter position size, just so that I can effectively still run it for even more. There is the potential to come down to 1.1350, which is another daily pivot.

So if it starts to all line up then maybe I can do that as well. I’ll press pause for now while we’re waiting on this.

 

See this is why I ended up taking that extra unit off, I could see we’d come down to some more support on the 15 and 30 minute charts and the potential was that we are going to start bouncing, which is exactly what’s happened, which is why I took half profits off. That will affect the profitability.

I’ve moved the stops down to 1.1410 and it will affect the profitability if we do come back up there. The problem that we’ve had today is that the market has been fairly choppy. The hourly chart really puts it into perspective. You can see the levels I’m looking for at this hourly 50, I think ultimately it will get there but it could chop around a lot first and I’m not willing to have to sit through all of that.

We’ll see anyway, hopefully it doesn’t come up to my stops, this is just a bit of movement, then we roll down again. It just demonstrated why I ended up having to bank a bit more profit up there.

Whatever happens it will be a profitable trade but we’ll give back a bit if it does come back down to there. At the same time I don’t want to move my stops down too much just yet. I could probably move them down another five pips now. I don’t want to move it down too much because I want to give it just enough room without crowding it.

 

This should go from here now. It’s reacted to the upper bands here and it shouldn’t really want to come down much lower. So I am going to start bringing that stop down a bit more aggressively now. I’ll bring it down to 14.03 or something. It should be wanting to remain suppressed.

I’ll give it a bit of slack just above 1.14, but not much more than that. I’ll move those stops down on pause…

 

Just back, we can see we did have that little bounce there back up, it’s reacted from there but we still need to see this follow through. We’re still struggling a little bit to really break down here, but we’ll see.

What I can do though, is move those stops a little bit more now down to these highs, so I can finally move those down. They’re at 03 so I can now move them down to the round number. There’s a pivot reversal in there so I can move those down.

The stops are down to 1.14 now, because if it comes back up to there again it just means it’s chopping around so I don’t really want to be in it if it’s going to carry on messing around like that. It would be nice if it could get down to that final target but we’ll see for now, I’ll press pause.

 

Okay, it looks like we’re getting close here, you’ll see these deals disappear at 66…

…There it is.

So we banked $610 on that trade. I thought about maybe taking the last one off but I’d literally only just come back downstairs to see this come down.

What has actually happened is it’s come back down to that hourly 50, which was that target this morning. It’s a shame that it was a bit choppy this morning so I couldn’t quite justify not banking those profits along the way because ultimately we have got there anyway.

Sometimes if it is a bit sloppy then it’s best to take profits because they don’t always do this, they go sloppy, you get a little bit of profit out of it then it comes back up and stops you out at break even and it hasn’t cost you anything so that’s the point there.

So we ran into that support there, it could well want to run into that 13.50 pivot level or maybe even yesterday’s lows down at 1.1341.

As a trader, your job is to try and be profitable as consistently as possible, and we talk about this in the trading room a lot, once you’ve hit your targets you have to ask yourself whether you need to trade again for that day. This is the challenge account, which I always trade on in the video updates and this challenge account has pretty much hit target.

I have a target between £200 and £400 as it currently stands. I don’t always hit those targets, for example I’ve been away most of this week and even when you are around, some days you just have a losing day or you just don’t get anywhere close to target but I have that as a rough zone to work towards and if I get to that zone then I have to make a decision whether I want to bother trading it again for the day or risk giving back some of that profit.

We haven’t got much news out today, there’s a little bit of news out later but it’s likely that I’ll leave this account now for the day and say that’ll do.

I’ll leave that with you, it’s been a long update considering I’ve only done one trade. Have a great weekend and we’ll be back in touch next week.

 

11 Comments

  1. David-Reply
    May 15, 2015 at 11:20 am

    Nice trading and shame about the road trip!

    I have written a hedge EA this week that I intend to use on medium / high volatility news events. It basically works by well on pairs with short spreads when I back test it. Have you ever considered using something like this when trading? The only downside is you don’t as much, but then you loses are greatly reduced.

    • Charlie Burton-Reply
      May 15, 2015 at 11:55 am

      I would have to look at it as automation trading around news tends to suffer lots of slippage or even no fills in real world trading….

      • David-Reply
        May 15, 2015 at 1:33 pm

        Ok thanks. I would place a long or short based on intraday general direction trend in the morning only if both currencies had medium/high news out that day.

        The system has one flaw in it: it uses martingale to increase stakes if the pair starts ranging, hence why i would only trade when you know there should be enough volatility so it doesn’t range.

        I have back tested it on MT4 where it trades off key levels e.g. price goes up to 1.54 and places a short. This seems to work quite well and hedge trades only used a few times.

        I’m testing it today, if all good, I’m going to put it on an Amazon cloud server with my live account next week.

        • Charlie Burton-Reply
          May 15, 2015 at 2:32 pm

          Good luck and let me know how you get on over the coming months….

          • David-
            May 15, 2015 at 3:46 pm

            Thanks Charlie will do, hopefully I don’t run out of margin in-between times! Cheers, David

  2. Kevin-Reply
    May 15, 2015 at 1:06 pm

    Hi Charlie, I hope you’re well, you mention a lot about trading with the tide and not against it, the Euro is in a bull run but you’re shorting, which I don’t get, or is it that it’s a day trade, it recently hit new highs and the short term momentum is down, if you could clear that up for me I would be grateful.

    Many thanks
    Kevin

    • Charlie Burton-Reply
      May 15, 2015 at 1:13 pm

      Yes absolutely. When day trading you have to go with the flow of what’s happening intraday. If you try to always trade with the larger daily trend you would have more losses on those retracement days. So for intraday trading I tend to use the hourly chart as my anchor ad will trade in which ever direction that tells me too but of course I still check the 4 hour and daily too. But if momentum is down, that will be the direction I’m likely to trade!

      • Gary-Reply
        May 15, 2015 at 2:30 pm

        Hi Charlie. How do you determine momentum on the hourly? are you looking for pivots being broken, moving averages or something more simple like the MACD? I was trading at the same time you were this morning but got caught with my pants down trading with the longer term trend. Im used to using various MA’s to guide me towards the trend direction but as you mention it does lend itself to losing trades during a pullback.

        • Charlie Burton-Reply
          May 15, 2015 at 2:36 pm

          Yes I use my momentum indicators to determine where I want to trade. But obviously I don’t go into detail on all the things I look at for obvious reasons… Our members…

  3. Fuad Hossain-Reply
    May 21, 2015 at 10:57 pm

    Hi Charlie
    Just curious to know which trading software do you use and what charting package?
    Thanks

    • Charlie Burton-Reply
      May 22, 2015 at 6:58 am

      Hi Fuad,

      I use TC2000 for showing the video updates but I’m actually using eSignal on all my other screens. You can get eSignal on demand which covers FX for about $50 a month I believe.

      Regards

      Charlie

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