Hello and welcome to week 2 for my review of the atm-fx system.
Monday is a holiday in the USA, but as their sessions start in the afternoon UK time, I decide to carry on as normal.
No news items for the GBP or USD today, but there are 2 medium impact ones on the EURO.
Monday morning has seen a price rise of approx 80 pips on the overnight market so ideally I am looking for a reversal.
I get my first signal at 6.15am to SELL. My entry is set at 1.5609, my stop at the recent high of 1.5624, so a risk of 15 pips. I am slightly uncomfortable with this trade for 2 reasons. The initial risk is too low for my liking, I prefer around the 20-35 mark on a 5 minute time frame and second the entry point is very close to a notable support level of 1.5600.
I take the trade for the purpose of this exercise and notice recent lows as profit targets. A notable one is 1.5587 which proved to be a support / resistance level previous and would give about 20 points in profit.
The trade triggered on the 6.45am bar and just as I feared, found resistance at 1.5600 before retracing and wiping my stop out, only just. So a loss of 15 points on that trade.
I get another signal to SELL at 7.25am. My entry is exactly the same at 1.5609 and my stop is 1 pip more at 1.5625, so my risk is 16 points this time, still a bit to low for my liking.
I take the trade and aim for 1.5587 again. With the EURO news at 7.45am, I should maybe wait till 8.00am or just after before entering. I enter just after 8.00am with the price being drawn to the 1.5600 like a magnet before finally reaching my target on the 8.25am bar. It reached a low of 1.5582 before retracing yet so my profit target level proved to be a support / resistance level.
Anyway I scalped for 21 pips after the spread to put me 6 points up on the day.
There is a set up to BUY at 8.50am, but I chose to ignore this as the risk is too much as far as I am concerned at over 40 points. Unfortunate really as it would have made even more profits.
Overall a small win on the day and hope for better tomorrow.
The first things to note on Tuesday morning are the 2 high impact news items due to be released at 8.30am for the EURO and 9.30am for the GBP. So I need to be careful around these times.
The pound has traded down on the overnight session for approx 50 pips, so I am looking for a reversal to the upside.
The first signal is at 6.10am to BUY. My entry point is at 1.5637 and my stop at the recent low of 1.5613. So my risk is 24 points. A most notable target level of 1.5654 is noted as this has proved to be a resistance level on 3 occasions already. So I target that and 1.5650 as my scalp level.
It takes a while, but my entry is hit at 7.05am and reaches a peak of 1.5645 before retracing to near my stop. It finds support again and hits my target on the 8.15am bar, so I scalp as a news item is due shortly.
I feel I got lucky with this trade. After nearly hitting my stop, the market turned to the upside at 8.00am and kept rising. The indicators were all in my favour though and the scalp came at the right time.
I left it at that for today. There didn't seem any point in looking for another trade with the 2 news items due soon.
So another good day with this system. 13 points profit and 6 yesterday making it 19 for the week so far.
See how tomorrow goes.
Wednesday sees a high impact news item at 9.30am so I need to be aware of this.
Not much has happened on the overnight market with a range of approx 20 pips overall so I look for a signal in any direction and the first one is to BUY bang on 6.00am. I chose to ignore this as the risk was only going to be about 13 points which I feel is too low.
I had to wait a while, but the next one came at 7.50am again to BUY. My entry is set for 1.5617 with a stop at the recent low of 1.5579. My risk is 38 points, slightly higher than I prefer, but I hope to be in a position to move my stop should I go into profit.
After an hour of sideways trading, my entry is hit on the 8.55am bar. All the indicators are in sync with one another, so with the news due at 9.30am, I will see if I can ride this for 20 minutes or so and then make a decision on what to do.
I notice my entry is higher than todays high, so I look back to yesterdays and notice 1.5652 as a resistance / support level on a couple of occasions. I aim for 1.5650 as a worthwhile profit target.
My target is hit on the 9.15am bar so I scalped. I could have moved my stop to break even and therefore give me a free trade, with the news due in case it continued in my favour.
The price continued to rise to a peak of 1.5785 around 11.00am. This would have been my dream trade. All the indicators showed a move to the upside, I could have kept adjusting my stop and therefore guaranteeing a profit should the price reverse and take me out.
At face value I am gutted really as I could have made upto 150 pips profit on this.
Still, I made 34 after the spread which is great, so I called it a day.
53 pips up on the week and see what happens tomorrow.
Thursday morning sees 2 medium impact news items at 9.00am for the EURO and 9.30am for the GBP.
Mainly sideways trading on the overnight market with a 30 pips range approx, so I wait for a suitable signal in any direction.
The first suitable one came at 8.55am which I decided was too close to the news items, so I didn't take it even though it would have made more profits.
I decided to call it a day, so NO TRADE for today.
Friday morning sees 2 medium impact news items at 10.00am for the EURO and the G20 meetings ALL DAY for all currencies, so hopefully there should be some good trading opportunities.
The overnight market showed a trading range of approx 30 pips, so I wait for the first suitable signal in any direction.
The first one comes at 6.25am to BUY. My entry is at 1.5755 and my stop at a recent low of 1.5734 for a 21 points risk.
The days high is just above my entry point, so I look back to yesterday's high of 1.5785 as a suitable profit target.
My entry is triggered straight away on the 6.30am bar and reaches a high of 1.5779 before retracing and climbing again through my scalp level. It continued rising and found resistance at a notable level of 1.5800 before retracing back down to my original entry point.
Overall a great trade. I settled for that today. There was an opportunity after that to the downside, but I chose to ignore it.
27 pips profit after the spread brings an end to my 2nd week of using the ATM FX system and a profit of 80 pips for the week.
After 2 weeks my profits are PLUS 148 pips.
Is this too good to be true?
It is going exceptionally well at the moment and long may it continue.
See you next week.
No comments:
Post a Comment