EURUSD bloodbath

Those who traded on Thursday afternoon (GMT) certainly remember the 150pips POP in 5minutes (EURUSD). Well the day itself on my main strategy (VFI) was average. I ended up the day with +19pips. As you have probably noticed once in a while I decide to take little longer term trade with much smaller size (usually 0.1lot – 0.3lot pos. on T3 vs the 1-3lot pos. on my main strategy). Well, I could not have chosen better day than the day of the unexpected announcement when 150pips move in 5minutes on EURUSD is not a standard move. These types of moves are typically present during interest decisions but not during central bank conference (this move itself is again the sign that something of much bigger scale is cooking). So enough of moaning, my trade did not work out and went home with -80pips loss. I have entered with minimal size (0.1lot) on my tiny czech brokerage account. The plan was to go SHORT once the price hit the top of the channel. It did and the trade went immediately down almost 50pips. My target was about 200pips away so stop-loss could not be moved until the size of one SL (80pips in this case) is reached. It wasn’t (:

On Friday I traded through the London session (VFI strategy) + bit of the US session and managed to get +37pips. Average size there was one lot or more precisely 1 standard contract size ($12.5/pip) since I trade only currency futures 6E(equivalent of EURUSD) on a MICRO M1 TF. I have decided to this transition in April when I found that to get the best execution speed and liquidity for my micro timeframe (M1) I have to trade through a clearing house and not in the OTC market. I use OTC market for trades like the one mention today in EURUSD – little longer term with the average objective of 100+ pips. For that I use usually one of my three accounts which are much smaller than those I use for trading currency futures. At the moment the only trade I like is the EURJPY trade. Trendline is visible and if it breaks I would like to see a move up. On any decent retrecement I would like to buy the pullback. Let’s see what is it going to be.
Have a great weekend.