My twitter followers will know already that my trade on this pair hit its stop and closed out for a profit of 3,829 pips last night. Typical that it was soon after I see that price purely bounced from this area back upwards, had my stop been lower I would still be in this trade, but, thats just the greed emotion doing it's thing as we know that we must have a stop somewhere.

Anyhow, this is the part where I summarise the trade and see where I could have done better. Remember, post trade analysis is crucial as it reveals how well you followed your trading plan, and how well your trading plan is performing and often highlights any areas for improvement.

STATS                                VALUE

Entry Date                           17 December, 2012
Entry Price                          135.615
Entry Stop                           134.750
Entry Risk                            865 pips
Exit Date                              8 January, 2013
Exit Price                             139.444
Profit                                    3,829 pips
Max Profit                            7,108 pips
Max Drawdown                   (135.615 - 135.426) = 189
Risk / Reward                      0.22

COMMENTS

I took 54% of the maximum available profit, which is good because this strategy is designed to take around 40% because it is is a high probability trading strategy. On reflection, it is worth noting that on the 2nd January the tenkan sen began to flatten and price at that point was further than 2,000 pips away. This could have served as an exit signal and is infact one of the things listed in my money management plan to look out for. REMEMBER: Look at your plan DAILY, and ask yourself "are you following the plan?". I clearly was not and had I sold at close on the 2nd I would have walked away with 89% of the available profit! So, on a technical level, this trade was all very nicely implemented but on a management level, I could have done better and achieved outstanding, instead of above average, results.

We live and learn and the markets teach us accordingly!

Friday saw buyers almost wipe out the gains of the previous days sellers by driving the price of the GBP/JPY from 140.494 to a high of 141.805 before settling to close for the week at 141.619.

The daily and weekly charts below both continue to paint a bullish picture with the total weeks gain amounting to 2,905 pips (O:138.714, C:141.619). This move is slighty up from the previous weeks gains of 2,465 pips. 

Buyers, such as I, will be happy to see a bullish close, and also the  development of a higher low, marked by the bold  "M"  on the chart to the right. For profit protection measures I continue to hold my stop at 139.000. This is the level where I expected bears to push prices back to this week. The new higher low tells me that they have not had enough power to do this yet. If they do at all remains to bee seen and as always, I eagerly await the close of the next candle.

In the meantime I continue to be bullish on the GBP/JPY. 


My current trade on this pair is, at yesterdays close, in profit to the tune of 6,004 pips from a buy order placed at 135.615 on 17 December 2012.

One thing I didn't do this week, and its important to comment on failings, is to regulary check my next lowest time frame.

Here on the 4H chart to the left you can see price action being rejected by the kijun sen on thursday the 3rd , this bounce was effectively another buying opportunity and my faults are:

1. I wasn't looking for it and;
2. I didn't spot it on Thursday!