Amendment to risk: Tuesday 24th July 2012 11:15hrs

Strategy Amendment:

Risk.

Over the past few months, weeks and including this morning, I have identified trade set ups that require price to break out and pull back.

Price makes a move allowing me to confirm the directional bias. Price then begins pulling back to allow for a better risk reward entry on the trade.

However over the past few months price has not pulled back enough to pick up my order and I have been left frustrated on the sidelines. As was the case with EUR / JPY this morning.

To prevent this I have decide to scale into the trade.

I will have 0.5% risk on the first entry and 0.5% risk on the second entry.

Total risk will remain at a maximum of 1% PER TRADE

The strategy remains exactly the same, I will just place two orders on each trade.

This should eliminate scenarios such as this mornings EUR /JPY trade.

I am sure you are all familiar with this approach but just in case I will use the trade from this morning to show how I expect this to work.

EUR/JPY Short.

1st Entry: 94.70

2nd Entry: 94.80

Averaged entry: 94.75

Stop Loss for both entries: 95.05

Target: 93.25 5%

Chart below:

 

I will need you to amend the risk on your software with 4 X Solutions.

Can you please confirm that you are in agreement with this small change, and if so you have made the amendment with 4 X Solutions to your account.

I will continue with one order with 1% risk until I have your agreement.

I look forward to hearing from you.

Best regards.

Scott