Trading EURUSD | Judas Swing Strategy 10/12/2024
Yesterday, we got a trading setup on EURUSD. This came after a week of little activity with the Judas Swing strategy, where we executed just one trade. Fortunately, that trade turned out to be a winner, yielding a 2% gain to conclude the week. It felt great to finally get some activity with the strategy earlier in the week with EURUSD, and we plan to guide you through the trading day's events.
We aim to arrive at our trading desk five minutes before the trading session starts (08:30 EST), to ensure we're fully prepared for the session. The session has finally begun, and a crucial aspect of this strategy is establishing a trading bias for the session. This involves waiting for a sweep of liquidity at either the high or low of the trading zone. Typically, a sweep of liquidity occurs a few minutes into the session; however, this time it was delayed. Despite this, we didn't rush into any trades. Instead, we waited patiently and eventually got a sweep of liquidity on the sell side, indicating that in this session, we should be on the lookout for potential buying opportunities.
Once the liquidity sweep requirement is complete, the next step is a break of structure to the buy side to confirm our bias for the session. Keep in mind, all this needs to occur before 11:00 EST. Once the break of structure to the buy side occurred, it was followed by a retrace into the Fair Value Gap formed by the subsequent candle, indicating that all the criteria on our entry checklist were satisfied.
We executed our trade after meeting all our criteria. Initially, we saw profits for the first five minutes, but then a large bearish marubozu candle appeared, plunging us into a significant drawdown. This exemplifies why we avoid tight stop losses and maintain a minimum stop loss requirement of 10 pips.
Upon reviewing the position again, we noticed that the trade had begun to move in our favor. However, since the objective has not yet been met, we must wait for one of two outcomes: either our stop loss is triggered or our take profit is reached
Our patience finally paid off when our trade, where we risked just 1% of our capital, yielded a rewarding 2% return. This trade was a testament to the importance of sticking to your trading plan and waiting for the right setup, rather than chasing trades out of impatience
We aim to arrive at our trading desk five minutes before the trading session starts (08:30 EST), to ensure we're fully prepared for the session. The session has finally begun, and a crucial aspect of this strategy is establishing a trading bias for the session. This involves waiting for a sweep of liquidity at either the high or low of the trading zone. Typically, a sweep of liquidity occurs a few minutes into the session; however, this time it was delayed. Despite this, we didn't rush into any trades. Instead, we waited patiently and eventually got a sweep of liquidity on the sell side, indicating that in this session, we should be on the lookout for potential buying opportunities.
Once the liquidity sweep requirement is complete, the next step is a break of structure to the buy side to confirm our bias for the session. Keep in mind, all this needs to occur before 11:00 EST. Once the break of structure to the buy side occurred, it was followed by a retrace into the Fair Value Gap formed by the subsequent candle, indicating that all the criteria on our entry checklist were satisfied.
We executed our trade after meeting all our criteria. Initially, we saw profits for the first five minutes, but then a large bearish marubozu candle appeared, plunging us into a significant drawdown. This exemplifies why we avoid tight stop losses and maintain a minimum stop loss requirement of 10 pips.
Upon reviewing the position again, we noticed that the trade had begun to move in our favor. However, since the objective has not yet been met, we must wait for one of two outcomes: either our stop loss is triggered or our take profit is reached
Our patience finally paid off when our trade, where we risked just 1% of our capital, yielded a rewarding 2% return. This trade was a testament to the importance of sticking to your trading plan and waiting for the right setup, rather than chasing trades out of impatience
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Innovative all-in-one trading and backtesting platform
cleo.finance
Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.
cleo.finance
Test trading strategies on crypto, stocks, indices, forex with decades of 1-min data.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.