in this video, we’re gonna be doing a case study. I’m going to be showing you how I traded GBPJPY life. Okay. For London session, GBPJPY. And of course I use the strategy called FX sniper strategy, many people call it different strategy. my very good friend, Dare, call it a SBS on the, I mean, very nice kudos to him because I got that strategy actually from him. Okay. So this strategy is very simple. I’m going to be teaching on it, very soon , but I just want to take you through how I open trade.
Okay. Now the way it’s been done is instead of you opening, let’s say, for example, you’re supposed to open up 0.3 lot size. You divide the lot size three. So you will open 0.1 lot size three positions. Then I will show you our, I put my stop loss, how I put my take profit, how I manage the trader and all those stuff. It’s going to be an awesome video. However, the sound might be a little bit low because as I was recording the videos, of course the kids were sleeping. My wife was sleeping. Of course our foster kids were sleeping and I did not want to disturb them with my voice.
Okay. just great. This quick video, two things I can do with this trade.I can move this, my stop loss to this place. Okay. Because it breaks out retest and we continue. So I can move my stop loss to the middle to reduce my risk or I can move to stop loss to above this place. Like for example, click on this move it a little bit. Why do I want to do that? These is a knew account actually. So why do I want to do that? So that even if their is any possibility of this trade coming the loss it will not get to something like this. So what am risking, I’m risking 67 X 3. So if the trade should go in our favor we should be making 221. So I’m risking 201 to make 221.
Okay.
I actually thought I was going go to bed, but I just want to create this video to explain all you adjust your stop loss once again. Now if this take profit hit this particular one – this is my take-profit one. So what I’m going to do is to move my stop loss. Okay. So once I’ve been through this week, see, All right. So, when you look at the trade that we’ll be following you could see that our take-profit one was reached, we make $37, our take-profit 2 was reached we make $81. So that take us to $119.34. Now what I did was I now move the stop loss of the third trade, I move it to break even. You can see now, so if this trade should go against me, okay. It will be zero dollar. That will be break even.so this one even if this trade should reverse and cut me off here, I don’t lose anything. Now another thing I can do, I can removed this take profit 3 and I just use trading stop. So what I’m going to do, I will right click, modify, so this take profit 3 I’m going to remove it, okay and I will put modify. Have this as my stop loss.
So I would right click,and I will use the size of my box as the trading stop. So the size of the boxes is 20 pips. So I’m growing right click. And I will do trading stop, custom, remember ten points equals to 1 PIP. So I’m looking for 20 pips. So that’s going to be 200 points.
That is it. So these is a trading stop now. So what this will do is as this trade is going down, it will automatically be moving my stop loss to trail it. Okay. It will automatically be moving my stop loss to trade it. And that is exactly what I’m going to do. And if it goes against me and it caught me off, I have nothing to lose right there. Okay. Well, just a quick update, as you can see now, the New York market has started, okay. This London market, this is New York market, and you can see that our trade is still on for the GBPJPY, number 1 we’ve booked our take profit one. We’ve booked the profits two. So this is the take profit three that we have right now over here. So as you can see, even if the trade should go against us , we don’t have anything to lose.
Two things I can do if I notice that this market is going to reverse I can just go ahead and close my trade. Okay. there’s no crime in doing that. at least we’ve book at least pretty much $119. Plus if we had to this this is about $200. So that will not be a crime, but the way I’m looking at it, it’s like the trend, the downward trend is going to continue for, for New York session. So let’s see, remember, we’ve already set the trading stop, so let’s see what the market would do. Okay. All right. So with, these are pinball for me right now, as you can see, this is the low of New York
Okay. per the channel . This is the high of it. Okay. my work, I mean, I might not want to risk it. I can just go ahead and close this trade, as I’ve said, because the way it is, it might reverse and you start, you know, going back up and I don’t want that to happen. So I’m just going to go ahead and close this trade right now. Okay. I believe we’ve done well for today. you know what, I’m just going to leave it and let’s see what’s going to happen. Okay.
Okay. So let me talk to us a little bit different. You see why we have these pinball or kangaroo thing as it might be called by different trader.because many people are now taking profit just like, what I’m about to do. So you know when we have downward movement and people are taking profit the market we try to push to upward direction because the buyer are trying, but remember when you shot, when you have a sell position and you close your trade, what you are doing indirectly is that you are buying back the pair. So like, if I close this trade, now, what I just did is I just sold. Okay. So I think for the purpose of a trade , I mean this is a life account, it is not demo. So I’m going to close it. So, today we going to have at least $183. So now let me talk to a little bit about how you manage your account on this.
All right. So as you would see from the video on the trade, you will agree with me that everything started from you using a correct lot size.
Okay. All right lot size. So like that trade, yeah. The account is $5,000. Okay. And by my template here, that $5,000 account I could easily place 1.0 lot size. As you can see a 1.0 lot size. If I’m trading on five minutes, all fifteen minutes. Now what I did in this case is because the market was not, the direction was not too clear. So I decided to reduce this 1.0 to 0.6. So what I did, was I divide this by three And that gives me 0.2. So this was the trade that I placed three of them . I mean just as you saw, So we have 0.2 0.2 0.2. and from what I explained in the video you could see the total we are risking from this three was around $200. So when you look at $200 from $5,000, you see that that is about,
1% of this is $50. 2% is $100. So it’s like, I was actually risking , I think up to like 4%, if that is correct. So is that a $200 for 4% times 5,000. So yes. So we are risking around 4% of these accounts. Number one, I was trading on five minutes. Now the truth of the matter is if you place a trade and you know, you can’t sleep. You can’t work out of that trade. You can’t do anything, then either what you have is a second job or you are over leveraging that account, or you are over-positioning that account. Okay Because after I placed the trade, I went back to sleep. And of course, when I woke up and saw that two take profit has already being triggered remaining one which we now began to trade till we finally close the trade. So this is how you trade. You know Warren Buffet says that the risk is in doing what you have no clue about.
So when you know what you are doing, we take risks in Forex trading, buy the kind of risk we take is what is called calculated risk. We calculate the risk. I know am risking $200 to get $200. That is one to one risk to reward ratio.
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