Paper trade: Stopped USDCAD short @ 1.0540 for +131 pips

By Paul | Published: February 15, 2010

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

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  1. Paper trade: Stopped out of USDCAD short @ 1.0640 for -67 pips, re-entering @ 1.0680
  2. Paper trade: Short USDCAD @ 1.0671, Stop 1.0756, Target 1.05761
  3. USDCAD short target hit @ 1.0581, trying something new–to hold for longer
  4. Paper trade: USD/CAD long 1.07426, stopped out 1.06999 (-42.7 pips)
  5. Paper trade: USD/CAD all out @ 1.0872 (+196.6 pips) and 1.0821 (+145.6 pips)
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