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Silver Bullet Strategy EURUSD USDCAD AUDUSD | 26/11/2024Yesterday served as a classic example of the importance of risk management in every trader's system. We initiated three trades across three different currency pairs (EURUSD, GBPUSD, USDCAD) and plan to provide a detailed breakdown of each trade, including the outcomes. We began scouting for potential setups that matched our entry criteria at 10:00 EST. By 10:30 EST, a FVG had developed on GBPUSD, indicating potential selling opportunities during this trading session. All that remained was to wait for a retracement into the created FVG to secure an entry point for the trade The subsequent five-minute candle entered the Fair Value Gap (FVG) on GBPUSD, indicating that we could execute our trade upon its closure. Simultaneously, we were exploring additional trading opportunities across various currency pairs. It was then that we observed the emergence of a FVG on USDCAD, necessitating a wait for a retracement into the FVG before executing a trade. We executed the trade on GBPUSD while awaiting confirmation to enter the USDCAD position. The USDCAD setup provided an entry confirmation, indicating that we would have two trades active during this session. Additionally, the session was still ongoing when we observed that another EURUSD setup was approaching the fulfillment of our entry criteria. Immediately after initiating the trades on GBPUSD and USDCAD, we observed a significant drawdown on both. This was due to a large bearish marubozu candle printing on the USDCAD, while the GBPUSD experienced two successive bullish candles, casting both positions in an unfavorable light. While all this was happening the setup on EURUSD had fulfilled all the requirements on our checklist so we had to execute that trade as well. Our USDCAD position hit the stop loss, and shortly after, our GBPUSD position also reached the stop loss, resulting in a 2% reduction of our trading account for the day. This leaves us with just one active position on EURUSD. Being in such a position wouldn't be easy to bare if we hadn't managed risk properly. We entered these trades risking only 1% per trade and had already accepted the potential outcomes, which greatly diminished any emotional attachment to these trades. With that in mind, the EURUSD position began moving in our desired direction, which was a considerable relief after two out of three trades had reached the stop-loss point We patiently waited, and this time our patience paid off when our EURUSD position hit the take profit (TP) for a 2% gain. Thus, for the day, we experienced two losses and a win, but with effective risk management, our win offset both losses, and we broke even for the day. Do you see the importance of ensuring your wins outweigh your losses? We experienced just one win and two losses, yet our single win was more significant that it offset all the losses we had for the day
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by CleoFinance
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