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Trading NZDUSD | Judas Swing Strategy 05/11/2024Last week concluded with a 3% gain using the Judas Swing strategy, which yielded three trades in total: two on EURUSD and one on NZDUSD. The EURUSD trades resulted in one win and one loss, while the NZDUSD trade closed with a win. These results have set the stage for a thrilling week ahead in the markets, and we can't wait to see what unfolds! As usual, we arrived at the trading desk at 8:25 EST to delineate our trading zones. Once these zones have been marked we need to wait for the high or low of this zone to be swept, this step is essential to help us get a bias for the trading session. After 40 minutes, the liquidity at the high of the zone was swept, indicating that we should look for potential selling opportunities in this session. While we may lean toward a sell this session, we hold back from entering until we see a clear structure break on the sell side. During this shift, price should create a Fair Value Gap, giving us an optimal entry point to step into the trade. After an hour's wait, we finally got a Break of Structure on the sell side, which also resulted in a Fair Value Gap being created. To fulfill all the entry criteria on our checklist, we must wait for price to retrace into the Fair Value Gap that has formed, and we can only execute the trade once the candlestick has closed. After 10 minutes a candle entered the Fair Value Gap, indicating that upon its closure, we may proceed with executing the trade. By risking just 1% of our account for a potential 2% gain, we reduce emotional attachment, knowing the loss is manageable, while positioning ourselves for greater rewards. Shortly after entering, the trade went into a drawdown; however, since we had risked an amount we were comfortable with losing, the current state of the trade did not move us. Upon reviewing the position after some time, we noticed that the trade had started moving in our favor, although it hadn't moved much from the entry price. Given the average trade duration of around 11 hours for the strategy, there’s no rush, we simply need to wait for the setup to deliver as expected. While the trade didn't reach our desired outcome and we took a 1% loss after the stop loss was hit, we remained unaffected because we were fully prepared for this potential outcome.
by CleoFinance
Trading NZDUSD | Judas Swing Strategy 28/10/2024 Last week highlighted the importance of a risk management plan for all traders using the Judas swing strategy as a case study. The strategy produced two trades on FX:GBPUSD and one on $EURUSD. Despite facing two losses and securing only one win, proper risk management ensured that the single win offset the losses, allowing us to end the week at breakeven. With these results in hand, we were excited to see what the upcoming week would bring. We got to our trading desk at 8:25EST and started our day by demarcating our trading zones. Once we have demarcated our zones, we wait for the high or low of this zone to be swept, as this will assist us in determining our bias for the trading session. After 35 minutes, the high of the zone was swept, indicating that we should look for potential selling opportunities during this trading session. Next on our checklist is to wait for a Break of Structure (BOS) on the sell side. After an hour, we observed a BOS on the sell side, which resulted in a Fair Value Gap (FVG) being formed in the process We must wait for the price to retrace back into the Fair Value Gap (FVG). A trade can only be initiated once price has entered the FVG, and it is crucial to be patient and wait for the price to close before executing any trades. This waiting period acts as a filter to avoid scenarios where the candle entering the FVG proceeds to hit our stop-loss. The next five-minute candle entered the Fair Value Gap and closed, indicating that we can proceed with executing the trade The position experienced a drawdown shortly after the trade was executed, but this did not concern us as we had only risked 1% of our trading account, targeting a 2% gain. Additionally, we implemented a minimum 10 pip stop loss to allow the trade sufficient space to fluctuate without prematurely stopping us out and then proceeding in our anticipated direction. Upon checking the position later, we found it had shifted in our favor. However, we needed to remain composed since it had not yet reached our ultimate target. Our task was simply to be patient and wait for our targets to be achieved Upon reevaluating the position, we noticed that price had returned to the entry point. At such moments, individuals who have risked more than they can afford may start to panic. That's why we continually stress the importance of only risking what you can afford to lose, as it greatly diminishes the emotional investment in trades. We have encountered situations like this before and will likely face them again. However, what remains within our control is the decision to risk only an amount we are comfortable with losing, which in turn lessens the emotional attachment to the trades. According to our data, we can anticipate being in a position for an average of 11 hours, so the duration of this trade meeting our objective is not a concern we simply need to remain patient for it to occur. After 13 hours and 25 minutes, our patience was rewarded when our Take Profit (TP) was reached, resulting in a 2% gain on the OANDA:NZDUSD trade
Education
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 22/10/2024Last week was active for the Judas Swing strategy, with two positions on FX:GBPUSD resulting in wins (+4%), three positions on FX:EURUSD yielding one win and two losses (breaking even), three positions on FX:AUDUSD with one win and two losses (breaking even), and one position on OANDA:NZDUSD securing a win (+2%). Overall, this led to a 6% increase by the week's end. Encouraged by these results, we began the week with enthusiasm to discover what lay ahead. In keeping with our routine, we reached our trading desks at 08:25 EST and set up our trading zones. Once we have demarcated our zones, we should wait for the high or low of this zone to be swept, as this will assist us in determining our bias for the trading session. Twenty minutes later, the trading zone's low was swept, indicating that we should concentrate on looking for buying opportunities during this trading session. Although we may have a bias for the trading session, we do not enter buy trades indiscriminately. Instead, we wait for a break of structure towards the buy side. During this break of structure, the price movement should leave behind a Fair Value Gap (FVG), which will assist us in getting an entry point for the trade. Shortly after, we observed a Break of Structure (BOS) on the buy side, which resulted in a Fair Value Gap (FVG) being left behind. To fulfill all the entry criteria on our checklist, we must wait for price to retrace into the Fair Value Gap (FVG) that has formed, and we can only execute the trade once the candlestick has closed. The next five-minute candle has entered the Fair Value Gap (FVG), indicating that upon its closure, we may proceed with executing the trade. It's crucial to understand that by risking only 1% of our trading account for a potential 2% return, we minimize emotional attachment to the trades since we're only risking what we can afford to lose, and we stand to gain more than we risk. After executing the trade, our position immediately showed a profit. However, it's crucial to stay composed and manage our expectations, as we do not control the markets and the situation could swiftly change. After a few hours, we revisited the position and noticed it was still fluctuating around the same price point where we had previously left it. According to our data, we can anticipate being in a position for an average of 11 hours, so the duration of this trade meeting our objective is not a concern; we simply need to remain patient for it to occur. Upon reviewing the position once more, we noticed it continued to consolidate in the same area. However, according to our rules, we must wait for the position to either reach the Take Profit (TP) or Stop Loss (SL) point. Unfortunately, our patience did not yield the desired results this time, as the stop loss was triggered and we incurred a 1% loss of our trading account on this trade. However, this loss did not impact us significantly since we had already accepted the amount we were risking on the trade.
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 15/10/2024Last week proved challenging for the Judas Swing strategy, with three consecutive losses and no wins, which heightened our anticipation for this week. Will we be able to break this losing streak? We'll soon find out. We typically arrive at our trading desks five minutes before the session starts to delineate our zones and settle into the trading rhythm. After delineating our zones, the next step is to wait for a sweep of a high or low of the trading zone, which will assist us in establishing our bias for the trading session. Forty-five minutes later, price swept the liquidity at the high, indicating that we should look for selling opportunities during this trading session. A few minutes after the high was swept, we observed a Break of Structure (BOS) on the sell side, which was encouraging as we avoid entering trades without analysis, even with a sell bias established for the session. Upon identifying the BOS, the next step is to find a Fair Value Gap (FVG) within the price leg that broke structure. The final step in the entry checklist is to wait for price to pull back into the Fair Value Gap (FVG) and to execute the trade only after the candle that enters the FVG has closed. Shortly after, a candle entered the FVG, indicating that we could execute our trade following the close of the candle. It's crucial to understand that by risking only 1% of our trading account for a potential 2% return, we minimize emotional attachment to the trades since we're only risking what we can afford to lose, and we stand to gain more than we risk. After executing the trade, we experienced a significant drawdown, which is a critical point for those who risk more than they can afford to lose. After a patient wait, the trade has turned around and begun to move in our favor, which is thrilling. However, we must still keep our composure as the objective has not yet been achieved According to our data, we can anticipate being in a position for an average of 11 hours, so the duration of this trade meeting our objective is not a concern; we simply need to remain patient for it to occur. After 15 hours and 20 minutes, our patience was rewarded when our take profit (TP) target was reached, resulting in a 2% gain on a trade where we risked 1%.
Education
by CleoFinance
Trading EURUSD | Judas Swing Strategy 01/10/2024The Judas Swing strategy is straightforward and can be incorporated into any trader's toolkit. It is a well-tested approach that has shown effectiveness when its guidelines are adhered to. The strategy offers a favorable risk-reward ratio, risking 1% to potentially achieve a 2% return. In this post we intend to walk you through a recent trade we took on EURUSD using this strategy. We arrived at our trading desk at 08:25 EST, where we began by demarcating the zones for the trading period. This involves drawing vertical lines on the 00:00 and 08:30 EST candles. Following this, we mark the highs and lows within these zones, as they will serve as the liquidity pools for our trading session. The subsequent step on the checklist is to observe whether the high or the low of this trading zone is breached, as it will guide our bias for the trading session. Five minutes later, the low of the zone was breached, indicating that we should be on the lookout for potential buying opportunities during this session. Even with a bias for the session, we don't execute the trade blindly. The next step on our checklist is to wait for a break of structure to the buy side. This break of structure must leave a Fair Value Gap (FVG) behind. Once the structure is broken and the fair value gap (FVG) conditions are met, the next step is to wait for the price to retrace back into the FVG. A trade should only be entered after the candle that moves into the FVG has closed. After 10 minutes, price retraced and closed within the Fair Value Gap, fulfilling all the conditions on our entry checklist, allowing us to execute our trade. For stop placement, we use the lowest point of the price leg that broke the structure, provided it satisfies specific conditions. The minimum stop loss applied is 10 pips because a tight stop loss is not desirable, as it doesn't allow the trade sufficient room. In this instance, using the low would have resulted in a 4 pips stop; therefore, we extended it to a 10 pips stop loss with a 20 pips take profit and executed the trade. It's important to note that we risked only 1% of our trading account, an amount we're comfortable with losing, thereby eliminating any emotional attachment to this trade. Consequently, we are at peace with the outcome of this trade, be it a win or a loss. The result of this trade was a loss, which we accepted because we understand that the win rate for this strategy on EURUSD is around 50%, indicating that losses are inevitable with this strategy. However, as our winning trades typically outweigh our losses over time, this strategy should yield positive returns, making it unnecessary to focus on a single loss. Moreover, this post serves as a tutorial on how to trade using the Judas swing strategy and emphasizes that incurring losses is a normal aspect of trading.
by CleoFinance
Trading EURUSD | Judas Swing Strategy 12/08/2024We ended last week on a positive note, with four trades taken and three big wins on #EURUSD, #GBPUSD and #NZDUSD. This success has heightened our anticipation for the opportunities this week may present. We began our trading day at 8:25 EST by marking the zones for the Judas Swing strategy. This is a fundamental part of the checklist and cannot be skipped. After an hour and 5 minutes, there was a sweep of liquidity at the high of the zone, indicating we will be looking for potential selling opportunities this trading session. Following the liquidity sweep, there was a break of structure (BOS). Now, we simply need to wait for price to retrace into the fair value gap (FVG) that was created before entering a sell position. Although we had a bias for the trading session, we do not rush into every selling opportunity. Instead, we wait for a Break of Structure (BOS) on the sell side. The price leg that establishes this BOS should leave behind a Fair Value Gap (FVG), and price must retrace into this FVG before we consider executing a trade using this strategy. After 30 minutes a bullish candle filled the FVG, indicating that upon its close, we could execute our trade as all the prerequisites for entry on our checklist were satisfied. Our position was profitable for approximately 15 minutes before plunging us into a drawdown. During this drawdown period, we remained composed because we had a solid risk management strategy and only risked what we could afford to lose. We allocated just 1% of our trading account to this trade, targeting a 2% return. After 30 minutes into the trade, our stop loss was triggered, resulting in a 1% loss of our trading account. It's important to note that incurring losses is a normal part of trading. This particular strategy has a win rate of approximately 50%. However, with a positive risk-reward ratio of 1:2, adhering to this strategy can lead to consistent profitability in the long run.
by CleoFinance
Trading NZDUSD | Judas Swing Strategy 06/08/2024Every trader relishes ending the trading week positively, and that was precisely our experience last week. The Judas Swing strategy produced two trades, one on EURUSD and the other on GBPUSD, both of which turned out being winners. This positive experience has heightened our excitement for the possibilities that this week may bring. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone After 25 minutes, there was a sweep of liquidity at the low of the zone, indicating we will be looking for potential buying opportunities this trading session. Following the liquidity sweep, there was a break of structure (BOS). Now, we simply need to wait for price to retrace into the fair value gap (FVG) that was created before entering a buy position. The subsequent candle entered the Fair Value Gap, indicating that upon its close, we could execute our trade as all the prerequisites for entry on our checklist were satisfied. This position barely experienced any drawdown, as it became profitable 25 minutes after executing the trade. We risked a mere 1% of our trading account, aiming for a 2% return from this trade. All that remained was to wait patiently, having already accepted the outcome of our trade, be it a win or a loss. Based on the data collected for NZDUSD, we anticipate an average trade duration of six hours and fifteen minutes. After 45 minutes, our Take Profit was triggered, and our patience paid off as we hit our target on NZDUSD, resulting in a 2% gain from a 1% risk on the trade.
by CleoFinance
Trading EURUSD | Judas Swing Strategy 30/07/2024Risk management ought to be a trader's closest ally, as the previous week demonstrated the practical significance of incorporating risk management into every trader's toolkit. Last week, we executed four trades; despite having only one win and three losses, we concluded the week with a mere 1% loss on our trading account. This has heightened our excitement for the opportunities that this week may present. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone The next 5 minute candle swept liquidity resting at the low of the zone, which meant our focus would be on identifying potential buying opportunities for the trading session. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Please note that our stop loss is set at the low of the price leg that broke structure, and we implement a minimum stop loss of 10 pips. The minimum stop loss value was not chosen randomly; it was determined through extensive backtesting. This allows trades sufficient space to fluctuate, avoiding premature stop-outs and trades later moving in our anticipated direction. After 15 minutes, a large bearish marubozu candle formed, which could have exited us from the trade if we had set our stop loss solely based on the low of the price leg that broke structure, without including a minimal stop loss in our checklist. By using that price leg, our stop loss would have been around 6 pips, whereas a 10 pip stop loss provides the trade with sufficient breathing room. We are aware that our strategy does not guarantee a 100% win rate but rather hovers around 50% on EURUSD, indicating that some losses were inevitable. To avoid becoming emotional over the position, we used only 1% of our trading account with the goal of achieving a 2% gain. Upon checking our position later, we observed that the position was a few pips away from hitting SL. We remained calm despite the drawdown we were experiencing and were prepared for any outcome of the trade. All that was left was to wait for either our stop loss or take profit to be triggered to determine the result of our trade. A few hours later, the trade began to move in our favor. After 13 hours, our Take Profit was triggered, and our patience paid off as we hit our target on EURUSD, resulting in a 2% gain from a 1% risk on the trade.
Education
by CleoFinance
Trading AUDUSD | Judas Swing Strategy 24/07/2024Last week concluded positively, with three trades taken and two big wins on EURUSD. This success has heightened our anticipation for the opportunities this week may present. We began our trading day at 8:25 EST by marking the zones for the Judas Swing strategy. This is a fundamental part of the checklist and cannot be skipped. The next step on the checklist is to wait for a sweep on either side of the zone, which will assist in establishing a bias for the trading session. After 25 minutes, the high of the zone was swept, indicating that we should look for potential selling opportunities during this trading session. Although we have a bias for the trading session, we do not rush into every selling opportunity. Instead, we wait for a Break of Structure (BOS) on the sell side. The price leg that establishes this BOS should leave behind a Fair Value Gap (FVG), and price must retrace into this FVG before we consider executing a trade using this strategy. The next five-minute candle entered the Fair Value Gap, indicating that we could execute our trade at the candle's close since we had met all the checklist criteria. After executing the trade, price remained in a deep drawdown, which can be unsettling for many traders who do not manage their risk adequately. Additionally, traders who do not backtest their trading strategy thoroughly often struggle to adhere to their plan in these situations. However, this was not an issue for us, as we were aware that our strategy has approximately a 50% win rate, indicating that losses are part of the process. Therefore, we only risked 1% of our trading account on the trade, aiming for a 2% return. Price eventually reversed and started moving in our intended direction. We remained unperturbed by the duration of the trade, as our strategy data indicates an average trade duration of 8 hours and 5 minutes. Now all we need to do is be patient and let the trade run. We patiently waited, and our persistence paid off when our target was finally reached, securing a 2% gain on the trade where we had risked 1%
by CleoFinance
Trading EURUSD | Judas Swing Strategy 16/07/2024 - big win!Last week, we had awesome trading sessions using the Judas swing strategy. We entered 7 positions across 4 major currency pairs: EURUSD, GBPUSD, AUDUSD, and NZDUSD, and secured 5 Big wins! The results we've achieved with this strategy have heightened our anticipation for our trading sessions. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone In a few minutes the low of the zone was swept, which meant our focus would be on identifying potential buying opportunities for the trading session. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Please note that our stop loss is set at the low of the price leg that broke structure, and we implement a minimum stop loss of 10 pips. The position underwent minimal drawdown, after 5 minutes we were already in profit. What remains is for us to exercise patience and allow the trade to unfold to our advantage. We are aware that our strategy does not guarantee a 100% win rate but rather hovers around 50%, indicating that some losses were inevitable. To avoid becoming emotional over the position, we used only 1% of our trading account with the goal of achieving a 2% gain. Upon checking our position later, we observed that the position was a few pips away from hitting TP. After 4 hours, our Take Profit was triggered, and our patience paid off as we hit our target on EURUSD, resulting in a 2% gain from a 1% risk on the trade.
by CleoFinance
Trading EURUSD | Judas Swing Strategy 08/07/2024Last week proved challenging for the Judas swing strategy, which experienced losses on AUDUSD and GBPUSD. However, this has heightened our anticipation for a more successful trading week ahead. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone Now that our trading zone is defined, we wait for a liquidity sweep at either side of the zone to inform our trading bias for the session. Liquidity was taken at the highs after 25 minutes, signaling our focus would be on identifying potential selling opportunities. Even though we have a bias for the trading session, we do not enter trades blindly. Instead, we consider the following questions and do not rush into any trades until all the criteria are met. The questions are: 1. Is there a break of structure (BOS) to the sell side? 2. Has the price leg that broke the structure left a Fair Value Gap (FVG) behind? 3. Has price retraced into the FVG that was left behind? After an hour's wait, two of our previously mentioned conditions were met, indicating we were on the right track. We just needed to wait for price to retrace into the Fair Value Gap (FVG) to execute the trade. After the Break of Structure (BOS), the following candle entered the Fair Value Gap (FVG) that had formed. However, our thorough backtesting revealed that it is preferable to execute trades after the candle that entered the FVG has closed. This approach is due to instances where the candle entering the FVG may proceed to hit our stop loss, but waiting for the candle to close prevents us from such trades. After initiating the trade, we experienced a drawdown for approximately 35 minutes before the position began to move in our favor. Patience is now required for the trade to unfold. Based on the data we have gathered, we anticipate an average trade duration of 8 hours and 27 minutes. We are aware that our strategy does not guarantee a 100% win rate but rather hovers around 50%, indicating that some losses were inevitable. To avoid becoming emotional over the position, we used only 1% of our trading account with the goal of achieving a 2% gain. Upon checking our position later, we observed that it was progressing favorably in the direction we intended. After 12 hours and 20 minutes, our Take Profit was triggered, and our patience paid off as we hit our target on EURUSD, resulting in a 2% gain from a 1% risk on the trade.
by CleoFinance
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Trading GBPUSD | Judas Swing Strategy 02/07/2024Last week saw a lull in trading activity for the Judas Swing, concluding with no trading opportunity on the four major currency pairs we monitor ( FX:EURUSD , FX:GBPUSD , OANDA:NZDUSD , FX:AUDUSD ). This pause in activity has heightened our anticipation for engaging in some promising trades this week. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone The next step on our checklist is to await the sweep of liquidity on either sides of the zone, which will give us a directional bias for the trading period. Liquidity was taken at the highs after 20 minutes, signaling our focus would be on identifying potential selling opportunities. Although a bias has been established for the trading period, we do not proceed to sell indiscriminately. To enhance the probability of successful trades, we await a break of structure (BOS) on the sell side. Following the BOS, we expect the price to pull back to the initial Fair Value Gap (FVG) formed during the development of the leg that broke structure. Next on the checklist, we wait for the price to retrace into the Fair Value Gap (FVG) and execute the trade only after the candle that entered the FVG has closed. After executing the trade, we were in profit for about 10 minutes before the price reversed, leading our position into a drawdown. During the drawdown, we remained calm because we had risked only 1% of our trading account on the trade, aiming for a 2% gain if the trade was successful. We were aware that our strategy does not guarantee a 100% win rate but rather hovers around 50%, indicating that some losses were inevitable. To avoid becoming emotional over the position, we let the trade run its course and accepted whatever the outcome would be. We later reviewed the position and discovered it was once again moving in our favour, only to reverse direction and head towards our stop loss. We anticipated an average position duration of 6 hours and 35 minutes for the trade, so we let the trade run. We waited with patience, yet our perseverance did not bear fruit on this occasion, as our position reached the stop loss after 4 hours and 40 minutes, leading to a 1% reduction in our trading account. It's important to note that we were on a winning streak for a few weeks and it's normal to have losing trades; no strategy guarantees a 100% win rate. However, with proper risk management and a favorable risk-reward ratio, the potential for profit can outweigh the losses.
by CleoFinance
Trading AUDUSD | Judas Swing Strategy 17/06/2024 Following a successful trading week, we approached our trading desks in high spirits, eagerly anticipating the start of the trading session. While our week included trading FX:EURUSD , FX:GBPUSD , OANDA:NZDUSD we’re showing this classic example using $AUDUSD. At 8:25 AM EST, we began the day by running through the essentials on our Judas Swing strategy checklist, which includes: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone Now that our zones are demarcated, we anticipate a liquidity sweep on either side of the trading zone, as this will assist in establishing a bias for the trading session. Liquidity was taken at the lows after 5 minutes, signaling our focus would be on identifying potential buying opportunities. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Ideally, our stop loss should be set at the low of 0.65854, but that would place our stop loss at approximately 6 pips, which is too tight for our strategy. Extensive backtesting has shown that tight stop losses are often triggered before price reverses and moves in our intended direction. Consequently, we have implemented a minimum stop loss of 10 pips for all our trades. After executing the trade, we experienced a minor drawdown for approximately 25 minutes before price shifted in our favor. During the drawdown, we remained calm as we had only risked 1% of our trading account with the goal of achieving a 2% return. Price was progressing well in our direction, and all that was required of us was patience for the Take Profit (TP) to be reached. We expected to be in this trade for roughly 8 hours and 6 minutes, so we stayed composed and had faith in our strategy. After 3 hours and 50 minutes, our Take Profit was triggered, and our patience paid off as we hit our target on AUDUSD, resulting in a 2% gain from a 1% risk on the trade.
Education
by CleoFinance
Trading AUDUSD | Judas Swing Strategy 06/06/2024Despite taking the loss on 05/06/2024, we remained committed to our strategy. The thorough testing of the Judas Swing strategy has bolstered our confidence, allowing us to continue trading whenever our setup forms. The next day 06/06/2024 At 8:25 AM EST, we got to our trading desk and started the day doing the basics on our Judas Swing strategy checklist which includes: - Making sure the timezone is set to New York time - Making sure we're on the 5 min timeframe - Marking the trading period from 00:00 - 08:30 - Marking the high and low of the zone Now that we have established the day's low and high, we await the sweep of liquidity on either side of the zone to determine our bias for the trading session. Liquidity was taken at the lows after 20 minutes, signaling our focus would be on identifying potential buying opportunities. To avoid getting trapped, we waited for price to create a Break of Structure (BOS) to the buy side which occurred at 09:40. Subsequently, our focus shifted to identifying the initial Fair Value Gap within the displacement leg that broke structure. Price then retraced into the created Fair Value Gap (FVG), so we waited and only executed our trade once the candle that touched or entered the FVG had closed. After executing the trade, price moved in our intended direction with minimal drawdown. Similarly, we entered a trade on NZDUSD, and it was also progressing well towards our take profit target. Price nearly reached our take profit (TP) level but then reversed, prolonging our position in the trade. On average, we anticipate being in a trade for approximately 8 hours and 6 minutes, so we remained calm and trusted our strategy. Our patience was rewarded when we achieved our target on both AUDUSD and NZDUSD trades, resulting in a 4% gain (2% from each trade), having risked a total of 2% (1% on each trade).
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 05/06/2024 At 8:25 AM EST, we got to our trading desk and started the day doing the basics on our Judas Swing strategy checklist which includes: - Making sure the timezone is set to New York time - Making sure we're on the 5 min timeframe - Marking the trading period from 00:00 - 08:30 - Marking the high and low of the zone We then waited for liquidity to be taken on either side of our trading zone, which will give us our directional bias for the trading session. Liquidity was taken at the highs after 15 minutes, signaling our focus would be on identifying potential selling opportunities. Precisely at 10:00, there was a significant bearish shift in GBPUSD that broke the structure, creating an FVG in the process. Keep in mind that high-impact news for the USD occurred at 8:15 and 10:00 EST, which can influence price movements. We then waited for price to retrace, filling or touching the created Fair Value Gap (FVG), and only executed our trade once the candle that touched or entered the FVG had closed. After executing the trade, price initially moved against us to fill part of the FVG left behind, it later moved slightly in our direction. However, it took a turn towards our stop loss. Despite this, we maintained confidence in our strategy, given its extensive backtesting, which has demonstrated a win rate of 52% on GBPUSD trades. Accepting the calculated risk of 1% of our account for the possibility of a 2% return, the closeness of the price to our stop loss did not shake us, and we kept our faith in the strategy. We anticipated an average position duration of 6 hours and 35 minutes, which could extend to 2x longer for the trade. We waited patiently, but our persistence did not yield results this time, resulting in a 1% loss in our trading account. It's important to note that we were on a winning streak for a few weeks and it's normal to have losing trades; no strategy guarantees a 100% win rate. However, with proper risk management and a favorable risk-reward ratio, the potential for profit can outweigh the losses.
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 13/05/2024 At 8:25 AM EST, we got to our trading desk and started the day doing the basics on our Judas Swing strategy checklist which includes: - Making sure the timezone is set to New York time - Making sure we're on the 5 min timeframe - Marking the trading period from 00:00 - 08:30 - Marking the high and low of the zone Next, we patiently awaited price action to take the liquidity positioned on either side of the trading zone, providing us with a directional bias for the trading period. In this instance, liquidity was taken at the highs after 10 minutes, signaling our focus would be on identifying potential selling opportunities. To avoid getting trapped, we waited for price to create a Break of Structure (BOS) to the opposite side (sell side) to indicate selling. Subsequently, our focus shifted to identifying the initial Fair Value Gap within the displacement leg that broke structure. Next, we waited for price to retrace, filling or touching the created Fair Value Gap (FVG), and only executed our trade once the candle that touched or entered the FVG had closed. In this case, the subsequent candle that formed was a bullish one, closing within the Fair Value Gap. Our stop loss is set above the high that formed the Break of Structure (BoS) leg, with a minimum requirement of 10 pips. In this instance, placing the stop loss above the high would result in only 7 pips, necessitating an increase to meet the 10-pip minimum. This rule was established not by chance, but through extensive backtesting of numerous trades, demonstrating how it prevents us from being stopped out before price moves in our favor. After executing our trade, we experienced a significant drawdown that nearly reached our stop-loss level, only for the price to eventually reverse in our favor. Had we set a 7 pip stop, we would have been stopped out; however, our rule of a minimum 10 pip stop saved us from that outcome. Although the price reversed again and entered a drawdown, we remained unfazed by this reversal due to our cautious risk management strategy. We had committed just 1% of our capital to this trade, with the prospect of a 2% return. We maintained confidence in our strategy, given its extensive backtesting, which has demonstrated a win rate of 52% on GBPUSD trades. The GBPUSD pair then consolidated around our entry point, prolonging our involvement in this trade. However, based on our collected data, we anticipated an average position duration of 6 hours and 35 minutes, which could extend to 2x-3x longer for the trade. Patience is crucial in trading, as it often places you in challenging situations We patiently waited, and our persistence paid off when our target was finally reached, securing a 2% gain on the trade where we had risked 1%
by CleoFinance
Trading EURUSD | Judas Swing Strategy 24/04/2024At 8:45 AM EST EURUSD made a big move down that took out the Judas Swing Zone Low. Then it came straight back up to create a BOS(break of structure). After the liquidity grab at the low and the subsequent break of structure (BOS), we patiently awaited a retracement towards the initial Fair Value Gap (FVG) that emerged during the displacement leg. We then waited for price to retrace, filling or touching the created Fair Value Gap (FVG), and only executed our trade once the candle that touched or entered the FVG had closed. After executing the trade, price initially moved favourably in our direction. However, it later took a turn towards our stop loss. Despite this, we maintained confidence in our strategy, given its extensive backtesting, which has demonstrated a win rate of 52.78% on EURUSD. Despite being in a drawdown at this point, we remained steadfast in our approach. Having accepted the calculated risk of only 1% of our account for a potential 2% gain, we were unfazed by the proximity of price to our stop loss, and maintained our trust in the strategy. Price eventually reversed and paused briefly around our entry point before resuming its favourable movement. We remained unperturbed by the duration of the trade, as our strategy data indicates an average trade duration of 8 hours and 27 minutes. We patiently waited, and our persistence paid off when our target was finally reached, securing a 2% gain on the trade where we had risked 1%
by CleoFinance
Judas Swing | London Killzone | "Optimal Trade Entry" Explained Hello Folks hope you're all doing great as usual, Today, I will explain something very basic in ICT teachings that repeats just so much and is super easy in fact.. This strategy combines multiple concepts of ICT teachings and is as follows: 1_we wait for the formation of Judas Swing(as defined by ICT) after New York midnight and it simply is waiting for manipulation to occur. 2_we wait for price to show inclination to go in the opposite direction 3_it is very important to enter in London Session(preferably in Killzone) 4_there are a lot of ways to find possible entry, and in this example show how to enter using OTE(optimal trade entry) pattern (it is a retracement to at least %61 (preferably %75 or %79) of the most recent price swing.. You can most probably hold the trade till end of London Killzone, so apply risk management and SL(below recent low/high) and you should be fine... Don't forget to ▶️ LIKE and ▶️ FOLLOW to get more of a lot of useful explaination and good strategies to become profitable and just forget about what is called (technical analysis). Your comments and opinions DO matter a lot! So let me know what you think! +Thanks!
Education
by MST_Trader
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