First big win!

While I received some great presents at Christmas, perhaps my favorite was giving to me by the EUR/USD. I have been trying to implement the strategy outlined by Jacko in his thread on the Forex Factory forums. Once again, the basic strategy is to only buy in the direction of the strong bullish trend on the EUR/USD pair with a 50-pip trailing stop loss and only to buy on 50% Fibonacci-line dips and round numbers. What really makes the strategy flourish is the employing what he calls an "Anti-hedge" trade where after a losing trade, you wait for the price to drop a further 50 pips and place a buy stop where you were stopped out. The idea is that once the long-term bullish trend picks up again, it will pick you up along the way and likely cover your original loss and then some.

Thursday was exactly one of those anti-hedge trades that was a loss back on December 14th, but the buy stop was set and waiting to be picked up when the Euro took off after Christmas. The trade very narrowly escaped being stopped out at 1.4591 and ended with a total pip gain of +191! Since the full trailing stop loss only rarely gets hit (since price would have to shoot directly down after entering) and the strategy has a good winning percentage, I risk 5% each trade meaning I nearly made a 20% account gain on this trade alone. After all the reading, researching, practice and work I've put into learning trading, it was extremely satisfying to finally see a glimpse of a light at the end of the tunnel. Of course this is just a single win, but its the exact encouragement I needed to continue in my efforts.


Merry Christmas and Happy New Year to all!