Long signal in the CADJPY (with good Risk-reward ratio)

Having a good risk-reward ratio on your trades is key to have good results in the long run.

What would you think about a risk-reward ratio of 9:1?

What that means is that I’m trying to get 9 times what I’m risking on that particular trade. For instance, if you have 20 pips at risk, I’ll be shooting for 180 pips…

This type of trades is what makes me feel (very) comfortable about the way I trade.

Think about it, how many successful trades like this one you would need a month? (hint: only one)

Here is the chart:

CADJPY

Details of my trade:

Entry: 80.70
SL: 80.34
TP: 84.29

By the way, I’m risking 1% of my account on this trade.

What do you think?

Let me know in the comment section.

Cheers,

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Dan

    Raul,
    So I can collate a time frame to Australian eastern time to your posted charts and emails could you advise your time zone in reference to GMT.
    Other than the pivot point , LOPS & HOPS what else did you base your trade on.
    Please confirm what the 30M stands for. Is it the same as H1 for 30 minutes in my meta trader 4 platform.
    How long would you leave the trade in place to expect the forecast results.
    I note that this currency was down as low as 80.1 yesterday and the indicators on my chart Aussie time this morning are indicating to take up a short position.
    I set up magic stick yesterday with a BuyStart 5 at 80.926 but to date it has not activated as the candles have subsequently been mostly bearish.
    Should I leave this position in place and set up a short position to take advantage of the current situation where it is all below the pivot point and LOPS1 and LOPS2.
    Just trying to get the correct understanding in my beginners head from the experts.

    • Raul Lopez

      Hey Dan, I’m GMT – 6, 30M stands for 30 minute chart, 15M for 15 minute charts, 1D for daily charts and 1H hourly charts.

      I took that trade based on my price action entry system, which I explain here:

      http://www.protradingnow.com/2012/07/15/price-action-a-short-term-trading-system/

      How much time? It varies from trde to trade… The best we can do is have a rough idea y looking at the previous movements. Take a look at the daily charts and look at the previous movements and see how many bars printed.

      I wouldnt set up a short position, the CADJPY is in a clear bullish condition (take a look at the daily chart). Also, what doesnt go up, it does not mean that it will do down… see what I mean?

      My trade in the CADJPY is closed already at a loss. I’d rather wait (for now, until we get a clearer view of the CADJPY) and focus on other pairs and crosses with clearer condition.

      HTH

      Cheers,

  • Colin T

    Not too shabby :-)

    Very good actually.

    We shall see but going with the flow this should be a solid trade.

    • Raul Lopez

      It’s looking good so far… but still too close to my entry… We’ll see what happens! Cheers,