GBPUSD trade closed

As recommended, we shorted heavily on GBPUSD at 1.6435 (100% Odds level to go SHORT). The trade became profitable yesterday and we closed half of the position at 1.6338.

You can see from the chart below, the frequency of reversal was low at 1.6338, that means this RL price level is not very frequently a LONG reversal area.

However, 97 pips profit from the top looked already good to us and we got some money off the table, to reduce risk exposure against a new upward move.

(click on the image to enlarge it)

Since it is risky to hold a position without a stop after a pullback (because the odds/levels are no more valid and they reset after the Close), we did set a stop loss right below 1.6435, to get out in profit in case the GBPUSD was going to go up again.

Today, our position was stopped out as the cable went higher than 1.6435. However we locked in some profits thanks to:
1) taking partial profit yesterday
2) having a stop loss in place at a level where we were still profitable on the trade

You can see that by using RL averaging down trading strategies, you can counter fight stop hunters and hold until the pullback/reversal comes in.

To learn more about RL trading strategies, you can enroll the RL Trading Course from here.

Posted by:

Wilson @ RL Team