Reasons to Follow Your Trading System

Anyone who has traded for any length of time can drown on and on about how great their system is and how disciplined they are when it comes to trading, however, to talk about it is one thing, to illustrate it is another.

For example, and this is a real world example.

Based on our trading system that is based on extensive back testing, we knew where to place our TP.  

Price action for the day took us up to 1.08827 on the EUR/USD, however, out TP was set at 1.08876.

A difference of 4.9 pips.  As the chart below shows, the candle at the top most point what the high for the day.

The significands of this is that it was not luck, it was research that made this possible.   By looking at the historically significant entry and exit points of what would determined as a Highly Probable Trade, we were able to use our data and research to make a profit of 16 PIPS.  While that may not seem like a lot, when you look at the overall trade over trade increase, highly probable small trades make up for uncertain large trades.

Looking at the charts for EUR/USD, things are not aligning up for another trade for today, so we will switch gears and place our focus on USD/JPY. 

This pair has a beautiful downward trend that is asking to be traded.

When you do not have OPTION A, make sure you have an OPTION B, and make sure you have that as part of your trading plan.