Paper trade: Stopped USDCAD short @ 1.0540 for +131 pips
Finally a profitable trade in my USDCAD short after being stopped out a few times. My decision last week to hold this for longer after USDCAD touched my target paid off. I moved my stop closer last Thursday evening and the order got filled on Friday. However, as I type this on the following Monday, USDCAD is trading even lower at 1.0478. It looks as though my original target of 1.0415 is in the cards.
Even though this is a profitable trade with a 0.17% gain in my demo account, there is one major flaw with this short USDCAD play. I was not able to squeeze more out of this profitable move.
As I’ve said, this short took a few tries. In fact, if we consider all the entires and exits of this play. My stopped out losses totaled 0.29% and my single win here is merely 0.17%. So I’m actually at a net loss of 0.12% from all these work.
My win/loss rate is about 40% based on my review of recent forex trades. I was able to edge out more than 10% profit in four months because when I am wrong, I take small steps. But when I’m right, I pile into a position.
Ever since my trading environment has changed, I’ve been trying to trade a longer timeframe. This USDCAD short is my first attempt on a new strategy. Evidently, I will need to re-think and re-learn what I’ve become accustomed to in the past few months.
One of the necessary trait of a successful trader is to be able to adapt. Markets change. Traders need to evolve with the markets or they will become obsolete. This will be a good test of myself to see if I can re-invent myself to adapt to a changing trading environment.
USDCAD, 3-hour
Related posts:
- Paper trade: Stopped out of USDCAD short @ 1.0640 for -67 pips, re-entering @ 1.0680
- Paper trade: Short USDCAD @ 1.0671, Stop 1.0756, Target 1.05761
- Paper trade: USD/CAD long 1.07426, stopped out 1.06999 (-42.7 pips)
- USDCAD short target hit @ 1.0581, trying something new–to hold for longer
- Closed USDCAD short @ 1.06525, breakeven
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