Trading Consultants Inc : GBPUSD H4 Drawdown Illustration
Trading Consulants Inc trades using monthly time frames. This strategy does create occasional drawdown pain.
Notice the 8/24 sell @1.3182.Price goes up over 100 pips to 1.3282 before the expected reversal occurred my son Jake Gibson saw price action on H4. He then took the second of two trades @ 1.3232. The drawdown was 100 pips x @4.00 per pip or $400. about 4/10%
Eventually price responded as anticipated. We closed both trades today.
Now you will see a very tight stop loss on the 8?24 trade.The SL was moved as created at 2:30 PM EST to avoid the ricochet in the event price retraced as its seems to be doing. Also we try to remove all exposure over a weekend to minimize risk . So while we have a short bias to 1.30 GPBUSD we chose to clear exposure with a small profit .