Risk - 0.6 percent
Return 2 percent (approx than 3 times)
Took the H1 parabolic SAR down. Trail with the algo trendline.
EURUSD was forming a channel downwards. This seemed to be a realistic thing to take. No reason not to take. Took profit at red line below.
Reasons to take the trade:
1) RR was low, I only wanted to risk 0.6 percent. In hindsight, could have shorted at the top of the channel for a higher RR.
2) Dollar strength unconfirmed.
3) The Parabolic SAR was in a 'sell' mode.
4) Price action shows the forming of a downward channel.
Post Trade thoughts -
1) Why did you close the trade prematurely (before the channel bottom was hit?) Reason: It was near the D1 algo trendline. Reversals are likely to happen. My RR was also hit - I didn't feel like I wanted to stick around.
If you could do it again, what would you have done differently?
1) sell earlier at the first black bar near channel top and not wait for parabolic SAR to show.
2) Risk about 1 percent.
3) Return should have been about 4 percent or more.
What else?
If EURUSD shows strength (bouncing off bottom of channel (in about a few hours time, I might pair it with a weak currency)
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