Mechanical Consistency Weekly Review 7; +3% Return.I avoided trading on Non-Farm Payroll Day! 28 August to 01 Sep 2023
TL;DR
Total Profit of approximately $300 (around +3%) for the 4th week of August 2023.
Total 5 trades, 3 wins & 2 loss.
1-hour Timeframe, Oanda, XAUUSD(Gold), $10,000 Capital, $200/ 2% per trade.
Mechanical Consistency Trading Strategy; Purely rule-based strategy, zero guesswork, zero analysis.
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What an exhilarating week it’s been with the Non-farm payroll report dominating the market’s volatility! The intense fluctuations led to rapid outcomes in some of my trades, with some resulting in quick wins and others in losses. Let’s dive into a review of this action-packed week!
Monday (28 August 2023)
0x Trades
Daily bias: Uptrend
Thanks to the market movements of the previous week, we didn’t initiate any new trades this time around. It turned out to be a stress-free day for me!
Tuesday (29 August 2023)
1x Win & 2 Lose trades
Daily bias: Uptrend
This week kicked off positively with a substantial profit from the first retracement trade. However, the intense volatility pushed past both my mean reversion trades, causing them both to end up in losses.
Wednesday (30 August 2023)
1x Partial win trade
Daily bias: Uptrend
After a significant bout of volatility the day before, the price settled into a narrow range, a pattern that became evident during the first half of Wednesday’s trading session. It wasn’t until later in the day that the price triggered my mean reversion trade. Fortunately, I was able to secure partial profits at Take Profit 1 before it resumed its upward trend.
Thursday (31 August 2023)
1x Solid win trade
Daily bias: Uptrend
The price remained confined within the narrow range, which worked in our favour as it triggered a retracement trade. I held onto the trade overnight, and by Friday, I successfully closed it with both take profit levels reached!
Friday (01 September 2023)
0 trade taken
Daily bias: Downtrend
Non-Farm Payroll typically takes place on the first Friday of each month, and it’s a known fact that the market becomes extremely volatile when this economic data is released. Traders often face significantly widened spreads, which can be detrimental to their trading strategies. Personally, I steer clear of trading on Non-Farm Payroll days, even if the setup aligns perfectly with my usual trade conditions. The heightened spread can trigger my stop-loss even when the price is far from my actual stop-loss level, making it a risk I’d rather avoid.
Endnote
In summary, the trading week was marked by the Non-Farm Payroll report’s influence, resulting in a mix of wins and losses. The previous week provided a break from stress, while trading saw a profitable retracement trade and losses in mean reversion trades. A narrow price range on Wednesday allowed for partial profits, and the week ended positively with a successful retracement trade reaching both take profit levels. I will avoid trading on Non-Farm Payroll days due to heightened volatility and widened spreads, mitigating risks from unpredictable market reactions to economic data releases.
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As a full-time working individual, I do not have the time to constantly monitor the charts and look for the “perfect” trading opportunity. This is why I adopted the mechanical trading strategy to earn extra money. This approach eliminates the need for extensive technical or fundamental analysis and removes any guesswork. It is a 100% Mechanical rule-based strategy, ensuring disciplined and consistent decision-making.
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