Date of losing trade: 26th June 2009
Megadroid 1st Losing Trade
Highlights (or Low Lights if you prefer) of this Losing Megadroid trade are:
1. It entered a short position indicating Megadroid assumed a trend reversal... And it did so without confirmation that the reversal had indeed taken place.
2.Megadroid initially did profit from a quick downward movement of 13 pips, but failed to close out the position for the profit. Rather, it stayed in the trade all the way to its stop-loss.
3. After the upward impulse was detected Megadroid still stayed in the trade, whereas a manually traded system would have seen you close out that trade when confirmation that your position was incorrect was ascertained.
4. There was plenty of evidence that the Fibonacci 0.38 level was a major support region, therefore, the most likely trade would have been a "Buy" order and not the "Sell" order that Megadroid initiated.
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