Several weeks ago I told traders that I was expecting the CAD to return to parity (1.00) and I was going to begin to build a position long. If you traded this with me you can clear your positions as the USD/CAD struck a dollar almost to the pip today. This trade has made its first long term target and it is time to collect. 🙂 I know my managed account clients are enjoying these profits and I hope you are to.
This was the first long term position trade that I have sent out however it wont be the last. This trade took several weeks to reach our target and did create a bit of a draw down before paying out and that is why using low leverage is key when picking tops and bottoms. I would like to point out a very important detail and that is that the draw down that you saw was less than the profit target and therefore the risk to reward ratio was greatly in our favor.
Secondly I did not leverage myself very much at all. We started small and added to the positions as time went by and new levels were struck. The target leverage was 5 to 1 and provided for a great return. Additionally, we hedged as as the market was falling against us and made great profits on the those positions as well.
I personally had 10 different entries and currently the worst one is up 100 pips and the best one is up over 600 pips. Keep in mind that we have made several hundred pips on the hedges as so overall we made well over 1000 pips on this trade.
I am personally still holding as a pattern has presented itself that may carry the Cad up to 1.0150 before a significant retrace however today did meet our first target and doing so has stretched the market quite a bit so I will be quick to close a large portion of my trade if it looks like it is going to fall.
We may see a several hundred pip retracement before a continuation. My longer term target of 1.05 and even 1.12 is still valid however it will likely be the end of the first quarter of next year before we see those numbers. 1.05 is possible by years end but 1.12 is a ways out.
Best of luck with your trading and keep an eye out for my trade calls and udates.
Dustin
P.S. Currently building a position short on the EUR and long on the CHF.
If you would like to join me in my live trade room where I share my opinions of the Forex as well as the actuall entries that I take you can learn about that service at the following page.
http://www.forexmastermaker.com/forex2.php
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