Good day fellow users of The Koala forex trading system.
In the last review, we noted that it was a challenging week. There were no trade zone signals on throughout most of the week. The ongoing sentiment break down of the Euro Zone brought many spikes. These spikes were definitely not optimal trading conditions.
We also explored the possibility of having 30 pips take profit value instead of the usual 50. The lower take profit value allows one to potentially exit the market sooner thus minimizing the risk. Having said so, with a lower stop loss value, entries must be more accurate to prevent unnecessary stop outs.
Looking at the EUR/USD 15 minutes chart above, it was obvious that the week was a very challenging one. Most of the week resided in the no trading zone as the currency pair spiked and flipped excessively. A 30 pip take profit would really help here due to the excessive volatility. One word of caution though, if one had been impatient, the spiky nature of the currency pair this week would have wiped out a 30 pip stop loss easily.
With the battle of the bulls and bears running into a tug of war, the only two opportunities were presented in mid week when the momentum was clean enough. These were 30 pips opportunities. A 50 pips deployment would probably have met with an unhappy end.
While the week was bad indeed for The Koala System, in a way i was satisfied with the system. I spoke to a number of traders and they had a tough week too and therefore this adds further validation to the accuracy of The Koala System’s signals. If it is a no trade zone, it is probably really a no trade zone.
For folks just joining us, you can view The Koala System rules here.
As the currency pair is really going through a tough time, it is crucial that you plan your trades well.
Trade safely and i will see you next week.