This morning I was watching the GBP/USD and noticed a nice range that we could get a break out of. Rob, a friend of mine who trades with me from time to time noticed the break at a time that I was doing something else. He pm'd me and we both took the trade. My fill was at 1.6359.
This type of trade gets to the heart of what TSR is all about. If you traded the wicks here, your fill would not be as good. Of course you would have still made profit on the trade, but you would have suffered some draw down. I realize that trade management is the key, but the better fill you can get and the less draw down you have, the more likely you are to stay in a trade. Really, there were no strong longer term levels concerning this trade. Rob and I saw a range, and traded what we saw. I show a 30 min chart here which gave me confirmation to take the trade. The candle closed above the range and then on the 5 minute chart you can see the entry. It got a little hairy when the 5 minute closed right near my entry. As I took the trade, that candle was not closed as of yet. After I got another surge toward 10 pips I had made up my mind to exit the trade if it came back to my entry. Fortunately for me, I got a surge into the 20's and took the majority of my profit. I guess this trade is about as simple as it gets using TSR. The bulls won this battle, now to the next one.
