Forex End of Day Strategy. Summary - Week # 5

End of the Day Forex Strategy - Test Week # 5.

Hello everyone. From start the "End of the day" strategy test 5 weeks pass. In general, summary results of the strategy are published every two weeks, but this week was so intense and so much happened that I decided to do another update. Last week was characterized by very high volatility. There is no doubt, however, that the main "hands" took place in pairs of pounds.

In general, when it comes to the pound, I have been observing it for some time. Especially some crosses or instruments where there is no American dollar, they looked interesting.

The most important pairs of last week for me were GBPCAD, GBPCHF and GBPUSD. I managed to open three long positions. On all the items discussed, I followed two main assumptions:

• in my opinion on both GBPUSD, GBPCAD and GBPCHF at the daily interval we had and continue to have an upward trend,
• I was looking for an interesting demand zone / strong support level, where buy orders could be activated.

Selected profitable transactions

At first, GBPCAD. The pair has been in an upward trend for several days. So far, however, there has been no opportunity to join the buyers' movement. A very interesting level in my opinion was the zone around 1.73090. I've set up a pending order that has been activated after a downward adjustment.

Long position. GBP / CAD chart, D1 interval. Source: MT4 XM

The next pair is GBPCHF. Here is an analogous situation. Strong upward trend and an interesting level around 1.29000. As we look at the W1 interval even higher, we will notice that in the past the pair reacted to this zone.

Long position. GBP / CHF chart, D1 interval. Source: MT4 XM

The last long was open to GBPUSD. The zone around 1.31120 is a combination of local support level, additionally with Fibo 38.2% by measuring traffic from a higher time interval.

Long position. GBP / USD chart, D1 interval. Source: MT4 XM

On all positions, as always, I had a stop loss order set. I never play strictly against the data, so at the time of publication of the initial results of voting I was at the computer and reacted to what was happening. I tried to lead the positions with a "cool" head, moving the stop loss very tightly. We know from experience that with this type of event, the market can strongly "blow". Currently all longias are already closed. Looking at the charts now, the pound has already given away some of the profits so I think that in this case a tight stop was a good decision.

I can include one more long for profitable positions, this time on USDJPY. The correction closed my order on a small profit, but still observes this pair. If there is an opportunity to enter, I will repeat the order.

Lossy transactions 

When it comes to loss positions, last week I can definitely include such short positions on EURJPY. The local zone around 120.680 where I had the order, unfortunately, did not keep the price and the pair broke higher. I already liked the candle from Wednesday, which is why I reduced the stop loss to cut unnecessary losses.

Short position. EUR / JPY chart, D1 interval. Source: MT4 XM

Of course, we continue to trade and are looking for another interesting trade opportunity. Summary:

Summary of items after 5 weeks (click to enlarge).

You can follow the results in real time on my profile on MyFxBook HERE.