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Thursday, September 23, 2010

Double Top

I had a trading idea today. The idea was to trade against Double Top or Double Bottom.
Following are the details of entry and exit in this trade system and the results obtained in 6E i.e Euro Dollar currency futures traded at Chicago Merchantile Exchange (CME) .Suppose the market precisely repeats a high (not considering 1 tick up or 1 tick down), and after making that high second time, I see two 1 minute candles continuously closing higher ; I will enter a short position with stop loss 1 tick above the high, and target same as stop loss. Below here, I have furnished the results obtained on 6E Dec 10 future. Since, I am based in India, I have used Indian Standard Time (IST).
Date      Entry time(IST)  Long/Short  Stop loss(in ticks)  Possible profit  Ratio(possible profit/stop loss)
23 Sep           4:24            Long                         4                             7                         1.75
This was first trade of the day, rest will be posted on next post.
 

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