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…

Trading Breakouts

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.

GBPNZD Analysis

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.

Your Turn

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.

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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

    sweet trade, i was long the cable from 2550 piercing pattern on the 18th 1hr chart

    i used to scale out and made little progress, now i scale in and have made much more capital

    i have been looking for a way to trade crosses with a strength meter or something but it lags price so its not very effective

    so i end up sticking with the majors, again nice trade!

    • Raul Lopez

      Wow! Nice trade on the GBPUSD… How many pips did you get on that trade?

      • dan

        Thanks, got out at 2750, before the 150 pip spike, so total about 200 pips or so, i should have trailed a stop with a moving average at least but it was a big piece of profit so i got greedy

        im long again at 2820, still holding, was waiting for another spike down into the range before it kept going but it started so I got in

        • Raul Lopez

          Ahhh very nice! And you still got another great trade running, with plenty of room… I’m actually look for a trade opportunity on the GBPUSD… we’ll see if I can get in on Monday…

          Have a great Weekend Dan!

          • dan

            You too! Thanks, yeah im hoping eur/gbp breaks .8300 to add fuel to the fire, then who knows 8100?

          • Raul Lopez

            Yep, I’m monitoring that one too… If it breaks through that level, I have my next level at 0.8040