Recent GBPUSD Swing Trade That Made 100% Gain in 24 Hours

In this post we analyze a recent GBPUSD swing trade that made 100% gain in just 2 days. Take a look at the following screenshot of GBPUSD M30 Chart!

GBPUSD M30 Chart

Now can you see the inside day bar in the above screenshot just above the first red arrow? This is our first entry. The inside day patter is a highly reliable trend reversal pattern. When we spotted this inside day pattern we made an entry at the close of the M30 candle at 1.56562 and our stop loss was 1.56762. So our risk was only 20 pips.

Suppose you had $1000 in your trading account. We open our first position with 0.2 lot. Our risk is $40 or 4%. We are confident about this pattern so we open use 0.2 lot instead of 0.1 lot. If you are less confident you can open the trade with 0.1 lot taking only 2% risk.

You can see fortunately just after this candle there was a breakout and price fell like a stone. We open the second position with 0.2 lot just above the second red arrow. Our entry is 1.56069 and we move the stop loss to 1.56259. Our first position is in a profit of $62 while the second position risk is $38. So our trade is now in a net profit of $24.

Now we open the third position just above the third red arrow. Our entry is at 1.55507. We move the stop loss to 1.55800. So our risk is 30 pips. The first position is in a profit of $212 while the second position is in a profit of $112. So our net profit is $323. This time we open the new position with 0.3 lot. So our risk is $90 while our profit is $156. So even if the stop loss gets hit we will end up with a profit of $233.

We close the trade next day at 1.54795. So the profit for the first position was $454. The profit for the second position was $254 and the profit for the third position was $213. So we made a profit of $881.

As you can see in the above analysis after the first position when we opened the second and the third position, our trade was in profit and RISK FREE. So initially the trade had a risk of 4% but then after that it had zero risk. If we had opened the second position with 0.3 lot. Our risk would have been $48 and we would have ended up making 100% return in just 24 hours.

When you trade always keep the risk under control. Never ever try to take big risk something like 10% thinking that you will be able to hit a home run. In this trade even the stop loss had been hit for the first position we would have lost $40 which was something manageable. With practice we know which patterns work and how much risk we can take.

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