A 357 Pips Ride with DuettoFX 6

Ciao a Tutti,

in the last few trading days DuettoFX gave a great opportunity to ride the EURUSD downfall. I combined the two techniques explained in these posts:

The result was a +357 pips ride between the two dashed red lines shown in the picture below:

Here is my reasoning behind this huge trade: first of all we had a perfect double top at 1.3485 with a very clear divergence on DuettoFX (look at the two white lines on chart). I entered short at 1.3470 some hours later the second high, when it was pretty clear that the divergence was actually in place (see the dotted vertical yellow line). The profit potential of this trade was +160 pips within the first 24 hours. I closed half trade at 1.3350 (+120 pips profit) when I saw some signs of a possible bullish reversal, and put a breakeven stop-loss on the second half. At that point the DuettoFX green cloud was clearly disappearing, so my expectation was for a new red cloud developing soon. After 24 hours the DuettoFX red cloud was formed with a spread > 2, so I had the opportunity to enter short again at 1.3299 (see the solid vertical yellow line). I added again the first half of the trade that was closed previously. My profit target for this second trade was +186 pips since the distance from the entry price and the highest high 60 bars before was 186 pips (see the two red lines departing from 1.3299 on the solid yellow line). Therefore I closed the trade entirely at 1.3113 and I’m now flat on EURUSD. This was a crazy ride for sure 😀

Of course you could also have taken advantage of the EURUSD downfall using PotenzaFX, which I always keep open on a EURUSD 4H chart:

In this case the short signal was at 1.3345 on the opening of the first candle after the dashed vertical red line. By the way, you can also notice how PotenzaFX correctly signalled a beautiful long trade at 1.3147 on the 17th of February with +330 pips profit potential (opening of the first candle after the dashed vertical green line). In this case PotenzaFX anticipated the long entry which was signalled by DuettoFX at 1.3222.

Imagine what you can do when you have gained a reasonable experience on how PotenzaFX and DuettoFX work and you have built enough confidence in these tools 😉

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6 thoughts on “A 357 Pips Ride with DuettoFX

  • Joe

    Hi Paolo,

    Great stuff. I’m still waiting for the automation of the DuettoFX cause I won’t be able to look at the screen all the time. May I know when will that be ready?

    • Paolo Post author

      Hi Joe, thanks. We are working on the DuettoFX EA, it should be ready within a couple of weeks. Anyway please note that most of the trades I’m documenting in these articles may be entered if you can look at charts 2-3 times per day. In other words also a part-time trader may be able – at least in principle – to enter many of these trades.

  • John

    Hi Paolo
    Watching and waiting for the DuettoFX EA to be released what’s look like to be the best
    EA on the market. What is your expectation in ROC % per month?

    • Paolo Post author

      Hi John, thanks for your appreciation. I don’t know if it will be the best EA, we’re just trying to build it upon some solid statistics, so we are sure to exploit a real trading edge. Regarding the ROC let’s do some math. We’ve seen the “basic strategy” can provide 1000 pips per month on average trading 10 charts, that’s 100 pips per month per chart. If the starting balance is 10k USD I’d trade with 5 microlots per chart, so that the overall leverage is about 5:1. In this case each chart may provide 50 USD per month on average. That means 500 USD for the 10 charts, or 5% per month. The drawdown in one month should be limited to twice the monthly return (worst case scenario), so 10%. Of course a more aggressive trader may aim to 10% or 20% per month if he is willing to accept more risk (like a 40% floating dd). We have to confirm these figures with actual backtests that take into account the floating drawdown.

  • John

    Hi Paolo
    Can you share with us any progress with the DuettoFX EA please.
    Did the DuettoFX produce any other exiting trades you can share with us.

    • Paolo Post author

      Hi John,
      DuettoFX produced other trades that I’m going to document as soon ad the current long position on EURUSD is closed. We had a buy signal last Friday (spread>2). Regarding the EA I’m experimenting an exit and re-entry strategy based on a smaller timeframe than H1 (which is our “official” tf for Duetto). Ciao, Paolo