Nick Reeves, 35, is a full-time forex trader who lives in England. He explains how he made 89-consecutive profitable trades by buying EUR/CHF.
Let’s get one thing clear from the start. I don’t recommend this style of trading. 99% of my trades do not have a 400 pip stop loss. I’m a price action trader. I trade simple support and resistance. No oscillators, no magic indicators. I like risk tight and usually max out at 50 pips for a stop depending on the pair. I’m pretty rigid when it comes to risk and entries, but EUR/CHF is slightly different. Then again, 99% of my trades don’t have a 1000lb fondue-eating gorilla protecting my stop…
We all know the SNB intervened years back and we all know the peg was set. The line in the sand was drawn at 120.00. Yet it wasn’t till Jan 2013 that I started trading EUR/CHF. Not my idea but from a good friend. Simple setup: Buy EUR/CHF at anything above 120.00. Play the peg. Trade large! Don’t look at the chart every minute of every day. Put it in the draw and forget about it , “He who dares wins rodders, this time next year will be millionaires” sort of conversation.
EURCHF since January 2013
So that was it. First week in Jan I bought some very large lots. Then it rallied 500-odd pips. I took parts off all the way but always kept a fair whack in case of that big move. For the first few months I traded any dip towards 122.00 buying more on every 50-pip dip below. I would take parts off based on levels, price action, correlations, and other times just cause I wanted some money for the weekend. SNB has funded some crazy nights out this year so I have a lot to thank them for! The lot size is so large I’m happy to get some off the table, hold the rest and reload lower. No one ever went broke taking profit.
As price got higher and as I got more confident I started using 123.00 as the first buy zone and every 50 pip drop fill my pockets with more. 89 trades later not one loser. I would just hold till I was in the green on every trade.
Don’t get me wrong mentally this pair has taken its toll on me. During the US shutdown I was mildly concerned and did close off more than usual, and more recently with the euro cut did lead me to think I’ve had a good run and maybe I should stop trading the EUR/CHF so aggressively.
That thinking didn’t last long and as I write this I have 4 entries. 2 Full ones and two half’s. All very much under water. I’m looking to add more if it gets to 122.50 and all the way down, barring any talk of peg removal from the SNB. In all honestly I don’t think I could react in time anyway if the peg was removed, I think it would be carnage out there and the slippage huge. I’m playing with the house’s money now so a lot of the pressure is off, but if price gets to 121.00 I don’t think I could resist going crazy and trading massive.
On this trade I don’t care for fundamentals and I hardly care for technicals as regards to entries. I have my line drawn in the sand and so does the SNB. I just hope those two lines never meet.
More about Nick (in his own words):
I began trading 5 years ago. I spent 2 of those years losing money. I used to be a self-employed Comms Consultant for UK Government. Now been trading full time successfully for about 3 years and still learning every day. When I’m not trading I’m an amateur boxer. So my account gets beaten up during the day and my face at night!!!! Great combination
Follow Nick on twitter @reevesnic
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