USD/CAD: Managing A Trade In The Green
Shain Vernier • 1 min read
Earlier this week I recommended a short trade in the USD/CAD. After some initial heat, it has performed fairly well. Now, the big question is whether or not to stay in for the FED announcement or to shut it down and move on.
USD/CAD Daily Chart
This trade could have been executed according to a scalping strategy or a longer-term position methodology. The initial attempt at a short 1:1 scalp from 1.2290 proved unsuccessful, as a bullish sweep ran price to 1.2337. Subsequent attempts were successful but tough to diagnose.
However, the longer-term short position is still valid and has produced a max of 55 pips profit. Currently, the USD/CAD is trading around +40 pips and there is a trade management decision to make. Here are the viable alternatives:
Take profits now, short of a 1:1 R/R
Move stop loss to breakeven, 1.2290
Move stop loss above Tuesday’s session high at 1.2309
Stay the course, stop loss at 1.2362 profit target at 1.2218
Bottom Line: This is a good position to be in. A profitable trade gives us many options to maximize profitability moving forward.
I am a big fan of racking profits when they become available. This trade took some serious heat right after entry. Walking away from it with a nice profit ahead of pending volatility is an attractive alternative in my mind.
Ultimately, trade management decisions fall upon the personal preference of the trader. Just be aware that anything can happen as we approach the scheduled FED release. Depending upon the market fundamentals, the USD/CAD may fall or rise definitively.