Managed account live trade USDCAD

Day trading course S&P 500 Managed Trading Accounts –

Managed account live trade USDCAD entry – stop management

Managed Account USDCAD position taken today. Wanted to show the entry and the stop management in the managed account.  In this picture of my desktop you can see two charts the 4 hour USDCAD chart and the 5 min USDCAD chart.

The 4 hour chart looked like it was in the upswing on a “V” reversal pattern, and I was looking for a trade signal to get in this trade.  On longer term charts this could extend through this resistance at 1.09850 and move to an extension around 1.11 . Although I am not looking for this to happen in the course of the trading day, I am looking for this to swing through the swing high where we had a previous double top.

I got the entry I was looking for with Price failure and a continuation of the reversal  and was looking for momentum from buyers to move in after their pullback.  On the 5 min USDCAD chart on the right, you can see the entry slightly under the 200MA in red. The we get the first extension and a move in to a consolidation period to build more energy to complete this reversal.

I will post a follow up on the trade.

Managed account live trade USDCAD follow up.

Breaking the top, as we approach the full reversal on the USDCAD completing the “V reversal” pattern. We will probably see a bit of consolidation at this level as the Psychological $1.10 is just around the corner. Price action does have momentum and buyers are in for the US dollar as you can see from Drayton’s post earlier and the long term trade on the Dollar index here.

As you might have noticed one of our practices is the Preventative stop, where we lock in profits and take risk out of the trade.  In the Managed accounts we employ this strategy to preserve our capital and although we will get kicked out of trades with a little profit, the ones that do play through have decreased our overall Beta to a minimum and increase our Net alpha/beta ratio dramatically.  Meaning, our home runs have large returns compared to our risk.

Will follow up with more on this trade later.

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