I got up early this morning so I decided to start trading Strignano’s Forex Signals a little early. I normally don’t start until a little after 8 am EST.
Since I already plotted my Daily Range, Pivot, Support and Reistance lines on the charts last night, I really didn’t have much to do but wait for a signal and get ready to manage the trades. With coffee in hand, I took the first signal of the two I took this morning.
Here were the signals…
(If you are not familiar with all these numbers and what they mean, don’t worry. Tom and Carlos teach you everything when you join Strignano’s Forex Signals.)
Ok, so how did things work out?
The EURUSD trade:
- Got in exactly at the price. (long)
- Ran into some resistance at the upper Daily Range before hitting 1st target (I was keeping my eye open for a possible reversal). I was +38 pips, and I didn’t want to give it back.
- Broke through and hit 1st target… moved Stop Loss up by 1/2.
- Almost immediately took out 2nd target… took of 1 position and moved stop to break even. (50 pips profit on 1st position and now no risk… yea!)
- Retraced a little but got past 3rd target… moved stop loss up to 1st target. (I’ve now locked in 50 pips on the final 2 positions!)
- Got past 4th target… took off 1 position! (82 pips on second position!)
- Was still in the trade until about 2:30 pm EST, when some news came out and the market flew against me and took my 3rd position out at the stop loss. (41 pips on the 3rd position).
All in all an excellent trade. 173 pips of profit. Or an average of @58 pips of the full position placed. Since my initial stop loss was only 32 pips… that’s a risk/reward of @2:1!
The USDJPY Trade:
- Got in at 95.93 (long) Was a little concerned because is was right below the daily pivot.
- Immediately took out the pivot, 1st and 2nd targets. Stop loss now at break even and 1 position taken off at 4 pips above 2nd… 24 pips!)
- The next hour took out the 3rd and 4th targets. Another position taken out for 34 pips… and stop loss now at 1st target. Locked in profit.
- Market went against me and stopped me out at 16 pips profit.
So, total pips of profit: 74. Average based on full entry: 25 pips. Since I risked 32 pips, risk reward not that great. (CLARIFICATION: Since I move my stop up and take profit, the risk reward changes DRAMATICALLY in my favor. I don’t know how to figure out the number, but I was risk free and with profit banked for most of the trade. So, don’t focus too much on strict risk/reward ratios.)
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Just so everyone can understand the numbers a little better, I want to show how I trade these signals. Tom teaches his method in the members site, and Carlos shows you how he trades the signals during the webinars and daily recap videos. The way I do it is a little different… but what I am comfortable with.
I place my order with a lot size divisible by 3. Today I used 3 mini lots for my trades. Then I scale out of the trade at certain targets 1 lot at a time. I also move my stop loss up to reduce risk, eliminate risk and lock in profit. Just my way of doing things.
So, when I calculate the total pips for a trade, I am basing that on 1 mini lot. Basically, each pip won is worth 1 mini lot. (So, this morning was good for a total of 247 pips on just 2 trades!)
Other traders like to take the AVERAGE of the pips won when scaling out so they can figure out their risk/reward ratio. They do this because when the trade starts I really have 3 lots at risk. I don’t usually bother taking the average and calculating this because the way I manage the trade reduces risk and takes profit as the trade progresses. It is not a simple (risk x pips to gain Y pips) equation.
So, one of the first things you need to do when you join Strignano’s Forex Signals is figure out how YOU are going to trade the signals. You can copy Tom or Carlos… which is advisable because they are the pros. Or, you can use a variation like I do. But one thing you should NOT do is start trading the Forex signals until you know how you are going to manage the trade!
[...] If you want to see a breakdown of how I trade Strignano’s Forex Signals, check out this post: Making Pips With Strignano’s FX Signals In The Morning [...]