We publish Adam’s trading signals daily covering EUR/USD, GBP/USD, and USD/JPY. As they are daily signals which are not updated throughout the day, they are conservative, and as such are frequently not triggered. Adam gives either exact prices at which trades should be taken, or trades which should be taken if confirmed by price action at certain prices.
During the month of December, three of the signals were triggered: there were 2 GBP/USD trades and 1 USD/JPY trade. One of the trades broke even, but could have been profitable if managed aggressively. The other two trades were profitable. Therefore following Adam’s free Forex signals during December 2013 was profitable overall.
Let’s review the three signals that were triggered.
Signal 1 – GBP/USD 4th December 2013
The signal was published at 09:42 GMT. It was given as:
Long Trade 1
Enter after a next hourly bar long break of a confirming pin bar or strong outside bar as follows:
Enter long after confirmation bar touching support level at 1.6325. If a bar closes with more than 75% of its range below this level, do not take the trade.
Stop loss at the lower of local swing low or 1.6290.
Move stop loss to break even and take half the position as profit when the price reaches 1.6388.
As can be seen from the hourly chart below, a pin bar touching 1.6325 closed at 10:00 GMT, giving an entry at 1.6371 with a stop loss at 1.6290. The initial target of 1.6388 was hit between 17:00 and 18:00 GMT later that day, at which point half of the position was to be taken as profit and the stop loss moved to break even. The stop loss was hit between midnight and 01:00 GMT the next day.
As the risk was 0.50% and the stop loss was 81 pips, and half of the position was taken as profit at +17 pips, the total profit on the trade was only +0.05% of equity.
Note that the entry was intended to be much closer to the 1.6325 price level.
Signal 2 – USD/JPY 5th December 2013
The signal was published at 08:24 GMT. It was given as:
Risk 0.50%
Entry should be made between 8am and 11am today or from 2pm today to 8am tomorrow morning London time only.
Entry should not be made after the price has touched the lower bullish ascending trend line in the chart below.
Enter short at the next bar break of a pin, strong engulfing or outside bar rejecting the bearish descending trend line marked in pink in the chart below.
Stop loss at the local swing high.
Take enough profit at 101.95 to remove the risk from the trade, or by 1pm London time in any case. Take 50% of the remainder of the position as profit when the price touches the lower bullish trend line, and leave the rest, consider closing it out before the weekend if it lasts.
As can be seen from the hourly chart below, a pin bar touching the bearish trend line closed at 14:00 GMT, giving an entry at 101.99 with a stop loss at 102.32. The initial target of 101.95 was hit within a few minutes, at which point the signal called for the vast majority of the position to be exited to take the risk off the trade. The lower bullish trend line was never hit; therefore the remainder of the position was stopped out at 102.32 at 13:30 GMT the following day, as can be seen in the hourly chart below:
Note that the entry was intended to be much closer to the trend line.
Signal 3 – GBP/USD 17th December 2013
The signal was published at 08:02 GMT. It was given as:
Risk 0.50%.
Entry should be made before 5pm London time today only.
Long Trade 1
Enter a long touch trade by placing a limit order at 1.6230 with an initial stop loss at 1.6188.
Take profit on 80% of the position at 1.6250 and move the stop loss to break even.
Take half of the remainder of the position as profit at 1.6350 and then let the rest of the position ride.
As can be seen from the hourly chart below, the limit buy order at 1.6230 was triggered between 15:00 and 16:00 GMT. The 1.6250 level was then hit within the next hour, at which 80% of the position was taken as profit and the stop moved to break even.
The trade survived overnight, and a signal update was published the following morning at 08:43 GMT giving a recommendation to exit the remainder of the trade immediately. At this time, the price was 1.6285.
As the risk was 0.50% and the stop loss was 42 pips, and 80% of the position was taken as profit at +18 pips, and the remaining 20% of the position was taken at +53 pips, the total profit on the trade was +0.25% of equity.
The exit was recommended as the price was nearing the upper trend line of a bearish channel, and a major GBP economic data release was imminent. However, the original second profit target of 1.6350 was subsequently hit the same day, with the price ultimately reaching a high to date of 1.6480.
Total Monthly Profit/Loss
A total monthly profit of +0.30% of equity was achieved.
There were no losing trades.