Forex Trade Challenge: Trade 1

Hello Traders,

I want to first say thanks for all the supportΒ  of the challenge and I just wanted to show my appreciation by recording a short thank you video.

I highly recommend that you follow me on Twitter so that you can get all of the trade communications directly as well as send me questions if you have them. Plus if you feel like this topic is useful to other traders it would help me if you could Retweet it, that will help other traders as well.

It appears that the majority of the traders out there seem to be interested in trading my plan and rules. I was initially planning on having everyone trade their own rules because that is what you are familiar with. I am in no way saying that my strategy is better then anyone elses. So if you all want me to make the strategy available for download so you can read it let me know and I will do it for sure.

I want to make it clear that if you have a strategy that you use then you can trade that strategy. If you have a strategy that you would like to share that would be great and helpful to everyone.

This is also a place to post your challenges in trading so that myself or someone else may be able to address them. This is a great chance to ask questions and get the help you need because I will answer all questions, as well as many other experienced traders that read this blog.

So here goes my first trade setup.

I am going to be making my complete strategy available for download as soon as I get the documents all finished for publishing. So in the mean time before I actually make the strategy available, I am going to list my very simple rules, to help you get started. This is not a complete strategy and just rules so like I said I will make the strategy available in the near future. It may be difficult to follow based on the rules alone but I am going to post the charts as well.

After you read this as you find trades post them here and also post whether you followed the rules or not.

Forex Rules

1. Identify the trend and Trade with the trend and not against(there are some circumstances where I will do counter trend) but I am not going to cover that here because for the sake of the challenge I want to keep it simple and make the most pips that I can.

2. When I find a trend I will wait until the price pulls back into support or resistance before making another trade in the direction of the trend.

3. Wait until there is a clear candle stick entry signal before taking the trade.

4. Make sure that I have a 2 to 1 risk to reward ratio on each trade I make.

5. Use conservative risk level at 1% of account balance.

6. Put Stop Loss and Take Profit orders in.

7. Move Stop to +1 when you are at +25 pips.

Look at the chart below.

Aug 8

Aug 8

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • Taimoor Bangash

    Got Stopped out at 59.50 for loss of 12 pips. Should not have entered because news was coming up and 12 pips SL is not big deal to hit at that time.

  • Taimoor Bangash

    Closed GU long for 20 pip profit at 1.56 too much noise because of news so better book the profit.

  • That is good that you are posting them thanks.

  • Taimoor Bangash

    Trade #5 Long AU at 89.62 with Sl of 89.50 and TP 90.50 Above 90.10 and will bring SL to 90.

  • Taimoor Bangash

    Sorry for not posting my trades on here .. I think its my 4rth Trade. Long GU at 1.5580 with SL 1.5560 and TP 1/2 = 1.5650 and 1/2 = 1.57. It is against the trend so will bring SL to BE once above 1.56 and above 1.5610 I will trail with 30 pips SL. Reason is correction in C of ii.

  • Kimbo4x

    Casey,

    It looks like this is setting up again. I just entered Long 7am GMT Aug 11. Long at 1.6635; SL = 1.6575 (candle lows on 4H chart); TP 1 = 1.6700 (prior candle high) TP 2= 1.6750 ( high of candle several candles back). This entry had a good 2 up-bar setup.

  • Taimoor Bangash

    Second Trade succesful πŸ™‚ Took profit at 90.92 and 90.70.

  • Taimoor Bangash

    Tempted to go Long GU here at 1.5720 but sticking with the rule of not going against the Trend πŸ™‚

  • Taimoor Bangash

    Ok second attempt at my second trade is AU again. Went short at 9112 with SL at 9122 and TP on half at 90.92. If goes below 90.80 than TP on All at 90.70 with adjusting stops to 90.92 on the second half. If this trade works out than my longer term outlook on AU will turn to Short side as well.

  • Taimoor Bangash

    Taking profit the other lot at 1.5750 for a total of 265 pips. 1 lot for 1.5990 – 1.5965 and 1 lot for 1.5990 – 1.5750. Closing the other lot because of FOMC. I beleive a major top in GU is in place will look to Enter shorts again around 5820-40.

  • Arvsil

    Simple and effective.
    Thank You.

  • Anne, I have been putting all of my entries on Twitter so it is a good idea to follow me there. http://www.twitter.com/caseystubbs

  • Anne

    At what point exactly did you enter this trade?

    Anne

  • Your waiver is noted πŸ™‚

  • That is very kind of you to be concerned for others. I feel the same way. I however try to get people think for themselves instead blind followers.

  • congrats! The question is are you following your rules? Also keep us updated on your pip count.

  • That was a pre trade analysis my TP actually was 1.66.50 I update all the trade info On twitter http://www.twitter.com/caseystubbs

  • Money management is indeed important.

  • I want comments that is why I am going to open a post each day. So anyways please keep us posted on how this trade works out for you.

    Thanks

    Casey

  • My trade was +1 as well. Good job on following the rules.

  • My result for “Trade 1” is 1 pip profit. I followed the rules, made a profit and I am pleased with the result. Looking forward to trade 2!

  • Taimoor Bangash

    Getting out from AU at BE

  • Adiel Khan

    the second trade was CAD/JPY

  • Adiel Khan

    2nd trade: Buy 83:40 SL 83:25 TP 84:20 recommended cancel if not hit by End of London session.

    Same rules:

    1. risk no more than 2% of account
    2. SL to break even at 40 pips
    3. minimum risk reward 2:1

    (please dont take this trade without doing YOUR own research, im not responsible for any losses occured)

    Thanks and have a great day

  • Adiel Khan

    Just incase I say last night as im in London…lol (for those elsewhere)

  • Adiel Khan

    Ok my 1st trade of USD/JPY Buy 85.15 SL 85.00 TP 86.10 failed to trigger last night so officialy cancelled.
    The pair went the direction I stated, would have been a nice trade if triggered.

    What went wrong: I would have taken this at market last night and risked 30 pips rather than 15. But I felt very cautious incase someone followed my trade. Never posted a trade in public b4 and would have felt guilty if someone lost money cuz of me.

    My next trade coming up.

  • Taimoor Bangash

    First Trade succesful πŸ™‚ second trade short AU at 9196 with SL 9206 and TP 9176.

  • Rick

    you mean 1.6716 for take profit not 1.6616 ????

  • mihai o.

    This is a great set of simple rules Casey. I see here many elements of money management techniques, which are the most important in my opinion. Thank you once again for great help.

  • Taimoor Bangash

    SL to BE 1.5990 now and no more posts I am sure Cassey doesnt want me to over load this site with comments here πŸ™‚

  • Taimoor Bangash

    Went in at 1.5990 right before the 30 min candle closed.

  • Taimoor Bangash

    Planning to go Short GU at 1.5995 with Sl at 1.6005 TP at 1.5965.

  • I love twitter trading thanks for the feedback it helps me figure out what kind of material to produce in the future.

  • kmitch

    After following you on Twitter, I subscribed to your list of traders and have learned A LOT from watching their tweets to each other. I had two successful trades last week after @fx_13 gave me some tips on going short at resistance levels. All of this transparency among traders has really helped me. Thanks for all you do.

  • I am glad that could be of help for you. If you have anything else you would like to share about your rules we are all ears.

    Thanks

  • Zink,

    I checked your stats you are a great trader. Please come by again and share some of your trading secrets πŸ™‚

    thanks for stopping by.

  • Thank you! The Rules make sense to me. Had been developing my own strategy based on support and resistance levels. You have helped me think that through:

    1. Don't go against the trend (new traders)

    2. Wait until there is a clear candle signal before entering the trade.

    Regards

    Robert

  • Zink_software

    i follow the rules:

    check this performance:

    http://www.myfxbook.com/members/Zinke/pokeralho

  • Adiel Khan

    yes.
    My rules:
    1. risk no more than 2%
    2. risk reward at least 2:1 risk reward ratio
    3. put SL at break even when 40 pips up

  • Thanks I hope they help you out.

  • That sounds like it could be a good trade, actually. But the question is did you follow your trading rules?

    Thanks for participating πŸ™‚

  • Adiel Khan

    ok my first trade USD/JPY Buy 85.15 SL 85.00 TP 86.10 Recommended cancel if not hit by London session. This is going against the grain but I believe we are in for some yen weakness.

  • I just want to let everyone know I followed my rules exactly πŸ™‚

  • Right you are Trade thanks for clearing that up I will edit it.

  • Bill Hawken

    Thanks Casey, excited to see the results.

    Bill Hawken

  • Trade

    Nice. You meant: 4. …I have a 2 to 1 reward to risk ratio on each trade I make instead:
    4. … I have a 2 to 1 risk to reward ratio on each trade I make?

  • Papahood

    Excellent rules to live by!