This entry is a follow up to our original Short USDNOK Pays Off Well piece published 9 April 2016. Since then, we have closed out all our trades on USDNOK and have booked a total of 5,370 pips of realized profits. This translates into roughly +6.28% of unlevered returns. This piece is therefore to update readers and followers as well as to provide the last concluding bits of our thoughts.
It must be noted that this trade complex (consisting of a base short and a second short position) was initiated on 23 March 2016, and was closed out (second short) on Friday, 29 April 2016. This means this trade complex was active for more than a month. It gives traders a different perspective to what they normally read on forums and websites, where most traders hardly last for longer than a week.
We've been immensely busy for the past few weeks and had no time to post new trading related content on these pages. Safe to say that the markets have been even busier with a bombardment of macro & central bank events jostling prices around. In today's short entry we'll give you a final breakdown and some concluding thoughts on our short USDNOK trade complex.
Before we continue, it is important that you understand all of the trading content we put out on these pages are real trades on a real account that we trade ourselves. We're using real capital and trading live prices. You can find out more about our trading system here. You can also view our entire trading journal here. In publishing such articles, we want to help traders from all walks of life better understand how successful traders approach the markets, and translate ideas into actions.
Technical & trade details
We have highlight the key technicals motivations for both short trades in the highly detailed charts below. Trade details are also highlighted with entry and exit prices and locations indicated accordingly. Again, please read our original piece to understand more as we won't be repeating everything we've said there.
Recall that we previously said: "We plan to hold both shorts until our primary target is realized, contingent that the trades remain qualified. We may decide to add more exposure to this position but will be playing it rather conservatively going forward." That was pretty accurate in hindsight.
Once again, only our Premium Subscribers are updated in real time on our live trades, so be sure to hop in the bandwagon if you want a part in the fun!
These were great trades. Not because of the profits but because of the process which enabled the trades. We are happy with our trade management and had set realistic objectives for the trades. It's all about the process of idea generation, to execution, and management. All 3 worked well together to produce acceptable results.
For those whom are interested in the underpinnings, the trades were 80% fundamentals and 20% technicals. We have talked a lot about the fundamentals in our original entry and won't be repeating them here.
For us to hold a position for more than a month, there has to be a very strong fundamental case for it. No amount of technical alignment will suffice. This is why we always advocate proper education and thought processes as traders formulate trade ideas. It is myopic to rely fully on the charts.
Once again, subscribers to our Premium Signals Service were kept updated in real time on all of our positions and had exclusive first hand insight to our trading activity as it unfolded. Many of them were short USDNOK with us and have profited heavily as a result. Congrats to those that did!