Weekly Trading Update - 25-29 October 2010

It's been another fairly quiet week this week. My main 4 hour trading system (see right for more details) generated 5 possible set-ups altogether (on the GBP/USD, EUR/USD and USD/JPY pairs) but I only managed to trade one of these because one of these set-ups occurred overnight and I couldn't get a good entry point on the other three. Other than that the Forex Morning Trade system continued to perform well this week with 2 winning trades and 1 losing one, giving an overall profit of 40 points as you can see below:

Monday: -40 points
Tuesday: +40 points
Wednesday: +40 points
Thursday: 0 (break-even)
Friday: no trade

As I've said before, this is not a system that's going to make you rich overnight. Instead it's a system that is more likely to build your account slowly and steadily over time, giving you a nice upward sloping equity curve.
You only have to look at the profits that I have banked so far to see how well it performs:

25-29 October: +40 points
18-22 October: +80 points
11-15 October: +120 points
04-08 October: +120 points
27-01 October: +80 points
20-24 September: 0 points
13-17 September: +120 points

Anyway if you would like to check out the Forex Morning Trade system yourself, you can do so by visiting the official website, or by reading my full Forex Morning Trade review.

(By the way if you are currently trading this system, don't forget that the clocks go back one hour on Sunday here in the UK so you may need to alter your daily routine next week, depending on where you are in the world. The important point is that you are at your computer one and a half hours before the London market opens because this is when the trading signal for each day is generated).

Back to my 4 hour system now, and as I've already mentioned I only traded one position this week. It was on the USD/JPY pair. It looked for a while that we may finally see an upward breakout above the 82 level, but after it failed to do so once more, I decided to trade the downward EMA crossover on the 4 hour chart yesterday afternoon, going short at 81.09 after a brief pull-back.

The position was still open late into the night and was only slightly in profit at this point, so I decided to set a 40 point target price (and a 30 point stop loss) and let it run overnight. Thankfully I woke up this morning to see that this target had been hit, which was nice.

Overall it's still quite a tricky time to be trading the major pairs because they all appear to be near the end of their current trends, so it's hard to be overly confident when a set-up occurs. I would much rather see them move above or below their current Supertrend levels on the daily chart (currently standing at 1.5604, 1.3613 and 82.967 for the GBP/USD, EUR/USD and USD/JPY pairs respectively) so we see the start of a new trend in the opposite direction.

Anyway that's about all I have to say this week. Have a great weekend.