Trades @ 3rd January 2012

A promising start to 2012 with two successful long trades with the fiber.

At the moment I'm experimenting with my own European breakout strategy. My belief is that the opening price for the European session can be considered "fair value", so I like to use it as a pivot until some major news comes out. I usually put in a trailing stop-loss once my trade is halfway towards my TP. A trade is opened when the price moves 15% away from the opening price, with a take-profit limit set a further 25%. I enter a trailing stop loss once the trade is halfway towards my TP, and my stop-loss is set between 0-5% on the opposite side of the opening price. I may set my stop-loss much tighter in future to improve my risk:reward ratio, but it's what I am using at the moment.

Trade #1

Opened a long trade at 1.29870 with an initial SL equaling the opening price of the European session, and a TP at 1.30120. Spot price fell short of 1.30120 before receding, so I decided to take profit at 1.30033. Nominal profit = 16.3 pips.

Trade #2

Used the same strategy as in Trade #1. Opened long at 1.29881 with a same TP at 1.3012. Price began to recede past the halfway mark and hit my trailing SL at 1.30017. Nominal profit = 13.6 pips.