We had a profitable week, although it was a bit less than 1%. Still, that is always better than a loss.
Last week I mentioned that I was selling 4 micro lots of the EurUsd based on a combination of the Parabolic SAR and SuperTrend indicators. Before the close of the week, we were 150 pips in the money so we closed 25% of our position and moved our stop loss to break even. This means that we are now guaranteed a profit in this trade even if the EurUsd changes direction. After this partial close, the EurUsd changed direction. Relying on our SAR/SuperTrend long term outlook and bollinger bands on a shorter time frame chart, we sold 4 micro lots of the EurUsd at 1.42272 and closed that trade 22 hours later for another 150 pips profit. Right now, we still hold 3 micro lots of the original short sale at 1.43654. They are roughly 282 pips in profit as I write this.
On the AudUsd, we were watching stochastics for a possible entry on the short side. We got our entry signal on Thursday, May 12, and shorted 4 micro lots at 1.06528. As I write this, this trade is 93 pips in profit. I think this trade has about two days of steam left in it. I do not think we'll get to 150 pips, but I'll be closing 25% of our position and moving our stop loss to break even if we do. In any event, we'll keep a close eye on the daily chart and get out of the trade when the market tells us to.
I opened a new trade tonight. I sold 4 micro lots of the GbpChf (British Pound/Swiss Franc) at 1.4406. I got in the trade about an hour and 45 minutes later than I would have liked simply because I was busy with other stuff. The trade is down 4.6 pips right now but I am not too worried. After all, the spread is 8.5 pips so it has basically moved 4 pips in my favor since I placed my trade.
Our two remaining positions are a 4 micro lot short of the GbpJpy, which is currently 46 pips in profit and a 4 micro lot short of the UsdChf, which is losing me 89.4 pips. I placed a 150 pip stop loss on this trade but may close it before we reach the full stop loss depending on what happens from now until 5:00 p.m. The UsdChf is currently trading below its 100 EMA, appears to be overbought and the fast stochasitc is barely below the slow one. I'd like to see the UsdChf lose some price today to feel more comfortable about this trade.
What I am watching: I am currently watching the UsdJpy. It is up since the open at 5:00 p.m. However, a move down during the day may be just what that pair needs to start heading down again. Therefore, depending on price movement today, I may be shorting the UsdJpy.