Weekly Trading Update - 04-08 October 2010

I'm pleased to say it's been an excellent week this week. My 4 hour trading system (see right for more details) generated one good trading opportunity on the EUR/GBP pair, and the early morning day trading system that I've been trading for several weeks now continues to perform well with 3 wins and no losses this week.

Let me tell you about the day trading results first of all. Mark Fric, the creator of the Forex Morning Trade system, has recently tweaked the system slightly because he found that moving the stop loss to break-even once the price moves 24 points in your favour increases the overall profits even further in the long run, based on historic data.

(If you had used these settings in September you would have had a profit of 240 points rather than the 149 points that Mark reported in his trading journal).

I implemented these changes myself this week and the early results are certainly very impressive, as you can see below:

Monday: +40 points
Tuesday: 0 (break-even)
Wednesday: 0 (break-even)
Thursday: +40 points
Friday: +40 points

The combined profit was 120 points (minus the spreads) and the two break-even trades were also over 30 points in profit at one stage before reversing in the opposite direction, so this system really did do the business this week.

On to my 4 hour trading system now and as I've already mentioned, I opened one position on the EUR/GBP pair. The Supertrend indicator was green on the daily chart, indicating an upward trend, so I went long when the EMAs crossed upwards on the 4 hour chart on Tuesday morning at 0.8670 after a slight pull-back. I then closed half the position for 40 points later that day, moved my stop loss to break-even and let the other half run. I was targeting another 40 points and this target was hit on Wednesday afternoon.

I was also looking to trade the EUR/USD pair as well, but after the EMAs crossed upwards and the 4 hour candle closed, there was no pull-back at all so I couldn't get a good entry point. As I'm writing this I see that the GBP/USD pair may be crossing upwards as well but experience tells me that you should never open a position on Friday afternoon.

Elsewhere I did have one losing position of 40 points on the GBP/USD. This trade wasn't based on any particular system. It was simply a high probability breakout trade that didn't work out on this occasion. On the whole though I'm very happy with the way this week has turned out.

Anyway if would like to find out more about the Forex Morning Trade system, you can do so by visiting the official website, or by reading my full Forex Morning Trade review. You may also like to have a look at my 4 hour trading system. In which case simply enter your details in the form above.