EUR/JPY Pip Switch/Trade Recovery
After analyzing the market with you guys this morning we discussed setting up a trade recovery/pip switch model like we did with the GBP/AUD. I concluded to set one up with the EUR/JPY. Currently, it appears to be finishing up a time cycle on the hourly time frame so I suspect that we will see a nice move within the next couple of days or week. Fortunately, with our model it does not matter which way the market goes. It only matters that it moves hard. The credentials and instructions to the trade are found below. We are currently short on this trade however, we will switch long and short until the trade becomes successful through our predetermined sequence. (The Sequence is located in the attached file in this signal). Our first trade is a 0.01 lot short at: 120.081 with a take profit at 119.079 and a stop loss at: 120.579. (This should be taken at market). If our first trade loses we have a long trade ready to go at: 120.591. This trade has a lot size of 0.02. Its associated stop loss is located at: 120.091 and its take profit is located at: 121.591. This type of order is also known as a "Pending Buy Stop Order." Which means it is a buy ready to trigger but will only trigger if the market pushes higher. I have attached the sequence of this trade within this signal. You must follow this sequence perfectly. If you have questions or are not sure how to implement the sequence let me know. NOTE: in the attachment you will see that the first lot size starts at "0.1" instead of "0.01." This is for calculation purposes. It is calculating dollars and cents. Or in other words, it's saying at whatever lot size will make or lose 10 cents a pip. We know that a 0.01 lot is called a micro lot and makes or loses 10 cents a pip. With that in mind we put 0.1 in the calculator because it makes for 10 cents a pip. To state it plainly a 0.1 in the calculator equates to a 0.01 in a lot size and a 0.2 in the calculator equates to a 0.02 lot size. In recap, we have only two trades on at the moment. One trade is an active short. Trade number two is a long but it's pending and will only open if the market pushes higher. It should open in the event that the short trade loses. If that happens you should hear from me in an update that will ask you to place a new sell stop order in the event that the market falls.
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— This morning our sell closed at its stop loss for a -49.2 pip loss. Immediately following the closing of our sell the long orders executed which are now up +32 pips positive pips each. Technically, we could close those two long orders now and cover the loss of the sell plus a little profit. However we want to see if we can make just a little more before we close those orders. In the event that the market were to drop right now we would need to have our new sell orders in place so I have replaced the sell positions that lost with sequence/switch three found in the attachment in this signal. The only thing you have to do to follow this sequence is to add a four micro lots short as a sell stop using the same trigger, take profit and stop loss as the original sell order. Please refer to yesterday's recording of the live trading room if you are confused with how we designed this trade.
— Our long positions closed at their stop losses and we have now entered our short positions. Currently, we are on switch three in the sequence and we need to setup switch four. I have placed six micro lots long using the credentials from the original buy order. Have a great weekend!
— Due to the nice drop that we had today with thee EUR/JPY I have decided to close our trade. In recap our first switch in the sequence was a single sell order which lost -49.2 pips. Following the loss of the sell we entered into two buy orders which were also not successful each losing -49.8 pips each. We then entered into four sell orders which we just closed at market for a positive gain of +57.8 pips a piece. After losses we ended up with a +82.4 net pip profit! We no longer need to hold on to our open pending orders because we have closed everything else. We will recap this trade in more detail in the War Room on Friday.