By Rob Colville on February 22, 2016 in
If you’ve always had a burning desire to know how to trade cross-pairs like GBPAUD, then you are in good company. They are our bread and butter! As we will reveal in the “How to Trade GBPAUD” video below, it really isn’t that difficult. You will discover the precise steps we took to identify a strong, trend-based sell set-up (on the daily timeframe), how we knew where to place the trade and where to exit the position.
Our ballooning army of Lazy Traders know all too well that it does not matter what the asset class is; As long as there is a valid technical set-up behind it that fulfils our rules to entry, it’s a legitimate trading opportunity. Yes, foreign exchange may be our default market; whether it’s the majors, minors, cross or exotic pairs but our strategies and style of trading work on all asset classes!
As you will soon see, the How to Trade GBPAUD video is a mere example of a valid technical set-up and it just happened to be the cross-pair: GBPAUD… we would have taken it had it been a stock, commodity or bond! That’s the power of a universal style of trading like price action.
The added benefit we had with this set-up was the fact it was on the daily timeframe, which meant that once we identified the opportunity and placed our orders with our best broker, all we had to do was to sit back and wait for the market to determine the outcome. The whole process took us roughly three minutes. Life is too short to be glued to the screen all day, after all!
Trading can be made simple and this is what we do. Why make life more complicated than it already is?
It was a trend-based “sell the rally” trade set-up that caught our attention on the 10th February. After all, we had the confirmation of the down-trend thanks to the order of our three moving averages; the 20, 50 and 200 emas and pure logic would dictate that it makes sense to sell the retracement in a bear-market.
Our signal or “activator” day took the form of a pin bar so we then placed our sell orders with the broker in the evening (London-time) in anticipation of it being filled over-night. After all, with Australia being ahead in time zones, it was likely that there could have been some movement influencing GBPAUD over night. We did not want to miss this train!
The trade only took us a few minutes to pinpoint and manage, and lasted for nine trading days. On the fifth day, price hit our “take profit 1” level at the previous swing low. We then “scaled out” half of the position to bank some profits, leaving the remaining half to run so that we could continue to ride the wave if more downside movement occurred. It did. Four days later (on day nine of the trade), we closed out the remaining portion of the trade, banking a sure-fire profit, totalling 10.2%.
Put into perspective, we made 10.2% return on the simplest of trade set-ups that took three minutes to spot and trade, and nine days to hit profit, from a strategy that works on all asset classes. Not bad, huh?
That’s trading in the style of The Lazy Trader – keeping things easy, simple and straightforward. Don’t make the mistake of underestimating what can be achieved from trading with such simplicity!
Our How to Trade GBPAUD trade example (video above) is just one case of how we can implement an universal set of rules to identify the trade set-up, manage the trade (regardless of what the market ends up doing), and know precisely when to take profit.