This is how I made 687 pips this week, trading breakouts on the GBPNZD (complete strategy)
I’m a firm believer that 90% of your trades depend on your previous analysis and only 10% on your actual entry.
You can have the best entry system in the world, but if you take your trade in the wrong direction, or trade the wrong instrument, then you are doomed!
In fact, I think it doesn’t really matter what entry system you use, as long as you are trading the right instruments.
So here is how I got those 687 pips…
Lots of traders feel uncomfortable taking these breakouts because they are afraid of being caught in a false breakout.
You just need to make sure you are taking the right breakouts.
It all comes to this, when the market is trading in a bullish condition, only take long breakouts, when the market is trading in a bearish condition, only trade short breakouts.
When the market condition is unclear, don’t trade breakouts.
Last week, the market broke through the 1.7878 long term level (on Theresa May’s announcement), triggering a bullish condition…
So we knew that the GBPNZD was likely to continue its way up, because the next LT level was at 1.8873.
This is how it looked like:
It’s obviously impossible to trade that kind of announcements, so we patiently waited for the market to settle down…
We finally got our chance early this week, after an hourly range developed towards the end of last week.
So we took the breakout of that range… Here is how that chart look like:
We took that trade at 1.8360, our take profit was at 1.8858.
I know its kind of difficult for some traders to hold your trade for more than one day… I know its not easy, but sometimes you need to hold these trades when the profit potential is this big…
Now, here is where it becomes a little tricky…
Most traders like to take partial profits as soon as the markets moves on their favor…
And there is nothing wrong with that… but I prefer to do just the opposite.
When the market moves on my favor, it is like the market is telling me, you made the right decision… So I always try to increase the trading size of my trade…
And that’s exactly what I did…
As soon as the market moved up, we had another opportunity in a 15 min range… Here it is:
We placed that send entry at 1.8463.
At the end, I decided to take profits at 1.8754 as I was not going to be able to monitor my trade.
What do you think about my trade?
Do you prefer to take partial profits or increase the size of your trade?
Do you trade the GBPNZD?
Let me know in the comment section.