Well I seemed to fall into all sort of traps this morning, mostly the old fake breakout which culminated in my largest 1 day loss – 2% of my account and 81 pips – ouch ! Doesn’t make it any easier to know that my targets were eventually met on all but 1 of the trades after the 7am retraces.
Learning points from today :
1) Is my strategy still OK – answer is yes. I checked against most other strategies I know and the 7am whiplash would have taken most of them out. However, on the longer timeframe (5m -> 15m) strategies I don’t think I would have entered in the first place. Really should take greater care when entering. If no clear entry before 7am then best to stay out and wait for liquidity to drop in to the market to set the direction.
2) Hybrid Views of market. I have noticed that in my attempt to ensure that all the bases are covered on different timeframes, I start to modify my entry and exit strategy based on S/R on other timeframes, this today made my entries later than normal and wider stops. So not working to my core strategy ! Stick to the plan!
3)Hesitation – On reflection it was clear that the moves stalled and I did not implement my “get out” plan when I recognised the patterns. yesterday the market gave me time to get out, today it didn’t.
Below is the chart from this mornings GBPUSD trade; the yellow area is where I should have bailed !
There is always tomorrow!