Broken recent low 1.5768. Now at 1.5739. Added to shorts at 1.5762 (BPZ9), 0.6% EAR only.- Thus far, have only been selling into rallies and weakness. Going forward, reckon risk reward considerations slowly changing. Would have to start looking at some levels where I want to be trading 2 ways ie core short, but day trading from long side to reduce risks and lock in partial profits. Possibly from around 1.5500 downwards.
- Technically still very bearish though. Notwithstanding the break under thin market conditions (NY, Tokyo holidays), one has to respect the technical break.
12 October 2009
GBP/USD : Fresh Lows on this Leg
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2 comments:
Hi TS,
So this nice-looking chart is delivering, so far at least.
:)
Is your target for this trade still the 1.5170 level ?
May I know the rationale for the strategy/intention for risk-reduction at 1.5500 onwards ?
(possibly approaching the high of the Jan09 monthly spinning top ? )
[Only remembered its US holiday today aft reading your post; am a little out of it.
Am glad for the rest-day today though.]
Don,
Target 1.5170.
Current stop = SHS NL at 1.6060.
As we trade lower, the risk reward becomes gets skewed against holding onto large shorts, unless we can identify tighter technical stops along the way. That decision will have to be made later. For now, its against 1.6060 stop.
I am now running about 6% EAR on this, which is double my intended limit of 3% EAR per position. Thus I think it makes sense to be locking in some profits and bringing risk back into line soon.
(Sometimes though, momentum is so strong that it makes sense to hang onto trades with worsening risk reward ratios).
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