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 May, two of the signals given were triggered, producing an overall profit of 0.37%. Following Adam’s free Forex signals since December 2013 has generated a total profit of 0.92% with a maximum drawdown of 1%. There has not been a single losing month.
Let’s review the signals that were triggered this month.
Signal 1 – EUR/USD 8th May 2014
The signal was given as:
Short Trade 1
• Go short following confirming bearish price action on the H1 chart following the first touch of 1.3955.
• Place the stop loss at 1.3987.
• Move the stop loss to break even when the price reaches 1.3908.
• Remove 50% of the position as profit at 1.3908 and leave the remainder of the position to run.
The signal worked very well, as the price hit 1.3955 just before the President of the ECB began his speech which caused a dramatic rise then collapse in the Euro, which the following H1 candle printing an extremely strong bearish engulf. The entry would have been at 1.3894 which was already below the level of 1.3905, so there was only a single exit to this trade. With a stop loss at 1.3994 the trade had a risk of 100 pips. The signal to close the trade was given at 7:43am London time on 12th May when the price was 1.3769, giving a profit of 125 pips which equaled a factor of 1.25. As the equity risk was 0.75%, the trade outcome was a profit of 0.9375%.
Signal 2 – GBP/USD 28th May 2014
The signal was given as:
Long Trade 1
• Long upon the first touch of 1.6738.
• Put a stop loss at 1.6688.
• Adjust the stop loss to break even when the price reaches 1.6775.
• Remove 50% of the position as profit at 1.6775 and leave the remainder of the position to run.
The signal did not work very well, as the price fell dramatically, bouncing only slightly after the entry level before falling to reach a level not far from the stop loss, which was not hit.
The following morning as the trade was only slightly at a loss, but showing no real bullish momentum, the signal was given to exit the trade for a small loss. In fact, as only 0.25% of equity was signaled to be risked on this trade, the eventual loss was extremely small.
The exit signal was given at 7:32am London time when the price was at 1.6724, producing a loss of 14.6 pips. As the total risk was 50 pips, the loss was at a factor of 0.292; multiplied by the equity risk of 0.25% the equity loss was only -0.073%.
As it turned out, the price did in fact reach one of the profit targets before the stop loss.
Total Monthly Profit/Loss
The month ended with a total profit of 0.8645%.
There was one winning trade and one losing trade. The winner was larger than the loser.