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Trading EURUSD | Judas Swing Strategy 19/11/2024The Judas Swing strategy experienced a downturn for the first time in several weeks. After consistently delivering good returns, its streak ended last week. It was a slow week, yielding just one trade despite checking four currency pairs for potential trading setups. Unfortunately, the trade on EURUSD ended with a loss. So this week we wanted to see if things will turn around taking us into winning ways again with the strategy. On Tuesday, we observed a setup on EURUSD that piqued our interest. There was a sweep of liquidity at the zone's high at 1.05964, which shifted our focus to looking for selling opportunities during this trading session. Shortly after, a break of structure to the sell side occurred, indicating the need to wait for a retrace into the created FVG for an entry point. Our entry price was at 1.05894 SL: 1.05944 TP: 1.05694 Shortly after initiating the trade, we experienced a drawdown of approximately 6 pips. However, having set our stop loss (SL) at 10 pips, the trade had sufficient room to fluctuate. This underscores the crucial lesson of avoiding overly tight stop losses. To understand this better, one should dedicate time to backtesting, which assists in determining the optimal invalidation point for one's trading strategy. After 50 minutes in this trade, our patience was rewarded with a 2% gain on our trading account, from a trade where we risked only 1%
by CleoFinance
Trading USDCAD and AUDUSD | Silver Bullet Strategy 18/11/2024The Silver Bullet strategy, introduced by the Inner Circle Trader (ICT), aims to exploit certain market conditions within specific time frames. It involves strategically placing entries at the initial fair value gap that emerges within these periods. Yesterday, we executed trades using this strategy and we plan to show you how to incorporate this strategy into your trading toolkit. Firstly, it's crucial to understand what a Fair Value Gap (FVG) is and recognize the optimal time to look for these trades, which is between 10:00 and 11:00 EST. In order to get into the groove of trading we got to our trading desk at 09:55 and with the help of the sessions indicator we have the our trading zones mapped out for us. It should be noted that the initial candle marking the start of a trading session cannot constitute the Fair Value Gap (FVG), but it can serve as the first candle in the formation of an FVG. The trading session began, and we were scouting for setups to trade using the silver bullet strategy. After 15 minutes, we noticed a Fair Value Gap (FVG) had formed on the USDCAD pair, which drew our attention to it. This development indicates that we should be on the lookout for potential selling opportunities this trading session. We must wait for price to retrace back to the FVG and only execute a trade after the candle that enters the FVG has closed. This approach helps us avoid trades that enter the FVG and immediately hit our stop-loss. After 10-minutes we got a retracement into the Fair Value Gap (FVG), and given that price did not surpass the high of the first candle in the FVG formation, we can enter this trade. A 10 pip stop loss will be set to provide sufficient room for the trade to develop. After initiating the trade, our USDCAD position experienced minimal drawdown, and by 10:35, it was progressing favorably in our desired direction. Simultaneously, we were evaluating potential setups on other currency pairs and observed the formation of a Fair Value Gap (FVG) on AUDUSD. The next candle retraced into the Fair Value Gap (FVG) created on the AUDUSD pair, indicating that upon its close, we could execute a trade on this pair. The USDCAD position swiftly hit the take profit (TP) target. Within just 25 minutes, we completed this trade and shifted our focus to the other open position, AUDUSD. The AUDUSD position was also moving favorably in the direction we anticipated. After a period of waiting, we checked the position and found that it had reached the Take Profit (TP) after two hours. We succeeded in both trades we entered yesterday, risking 1% on each and aiming for a total gain of 4%. As observed, both trades experienced minimal drawdown, but this does not guarantee similar entries in the future. It is advisable to backtest this strategy and collect sufficient data to reinforce your confidence should you choose to trade using this strategy.
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by CleoFinance