Review of trades of the Owl Smart Levels strategy for the week from January 30 to February 3, 2023

Today I present you an overview of trades made using the Owl strategy - smart levels for the EURUSD, GBPUSD and AUDUSD currency pairs for the week from January 30 to February 3, 2023. Now it is not an easy period for trend strategies because the market has been stuck in a small channel for a long time and it is not moving anywhere. This means that trend strategies can give a lot of false signals. But let’s see what we got.

EURUSD review 

The beginning of the week for the Euro was within the “Dead Zone” (the red zone of the Owl Smart Levels Indicator, in which it is not recommended to trade), but already at 7:00 on January 30 the first signal to buy the euro against the dollar appeared. The trade closed with a loss. Because of this the new rule was added - not to trade on Monday morning. The market is just opening, there are very few major players, and many traders are only trying to look closely at the market and form a trading plan for the week.

Fig. 1. EURUSD BUY 0.21, OpenPrice=1.0868, StopLoss=1.0861, TakeProfit=1.0891, Profit= -15$

After chaotic fluctuations on January 31, the EURUSD market turned down and formed a signal, but already for sale: OpenPrice=1.0849, StopLoss=1.0860, TakeProfit=1.0814. The trade was opened with a risk of 1.75% of the deposit (the first was 1.5% of the deposit), because the previous one was unprofitable. The Euro worked out this signal very well, and the profit was fixed on the open trade.

Fig. 2. EURUSD SELL 0.16, OpenPrice=1.0849, StopLoss=1.0860, TakeProfit=1.0814, Profit= +56$

After some fluctuations and another shift into the dead zone, the upward movement recuperated. On February 1 at 15:03 GMT, a Buy trade was opened with a minimum stop size of only 8 points (digits = 4). Profit was fixed on this trade very quickly, and the market has already tuned in for another rise.

Fig. 3. EURUSD BUY 0.19, OpenPrice=1.0896, StopLoss=1.0888, TakeProfit=1.0924, Profit= +53$

At 21:01 another buy trade was opened which closed quite quickly but made everyone nervous, as the market went down and was literally 1 point away from StopLoss. Then the EURUSD pair went up very far and the correction had to wait until the next day. And on February 2, the dead zone appeared again and did not allow trading until the end of the week. Only at 13:30 on the Non Farm Payrolls news, all EURUSD timeframes began to show a downward trend direction. But after such news it is better not to enter the market because it is very volatile and unpredictable.

Fig. 4. EURUSD BUY 0.11, OpenPrice=1.0902, StopLoss=1.0888, TakeProfit=1.0947, Profit= +48$

GBPUSD review 

The British Pound, like the Euro, opened the week in the red zone, which did not allow it to trade all day on January 30th. And due to the chaotic multidirectional movement, the first tarde was opened only at 9:45 on January 31. She created a nervous atmosphere, as she moved from the profit zone to the loss zone for a very long time, but in the end she has reached TakeProfit.

Fig. 5. GBPUSD SELL 0.15, OpenPrice=1.2323, StopLoss=1.2333, TakeProfit=1.2293, Profit= +45$

The next sell signal did not take long to wait, but I have a rule – not to open a trade earlier than 10 candles after the closing of the previous one. So I skipped the next trade.

Fig. 6. The Rule – not to open a trade earlier than 10 candles after the closing of the last one

Further, the market behaved chaotically. The strategy did not give entry signals, and eventually the dead zone was formed in the afternoon. Only on February 2 after 17:00, the British pound managed to get out of the dead zone, but on this day the strategy did not form signals.

Only on February 3 at 9:00, it was possible to enter the market. GBPUSD closed my trade with a loss and fell again into the red zone. After that I decided not to trade the GBPUSD currency pair anymore this week, besides, the strategy did not give any more signals.

AUDUSD review

The first trade in the Australian dollar opened at 10:00 on January 30th and closed with a profit only at 00:30 the next day. Another sell signal appeared almost immediately, but according to the rule not to trade 10 candles after closing the trade, this signal was ignored.

Fig. 7. AUDUSD SELL 0.13, OpenPrice=0.7086, StopLoss=0.7098, TakeProfit=0.7050, Profit= +45$

The next perfect signal appeared on January 31 at 7:45. Profit was fixed on the open position within one hour. This is what I call the “Perfect entry signal”, when the market does not move from side to side but immediately goes towards TakeProfit after a rebound from the level.

Fig. 8. AUDUSD SELL 0.17, OpenPrice=0.7034, StopLoss=0.7043, TakeProfit=0.7007, Profit= +45$

Then the market began to correct upwards and after one false signal, on which a loss was received, the Australian dollar entered the Dead Zone. The market left the red zone only on Friday, but after the news about employment in the US, I do not recommend trading, moreover, there were no more signals.

Fig. 9. AUDUSD SELL 0.19, OpenPrice=0.7048, StopLoss=0.7056, TakeProfit=0.7025, Profit= -15$

Results:

The week from February 6 to February 10, 2023, I think, will be more intense for signals on the Owl strategy. Last week there were 2 fundamental news: the decision on the US interest rate and Non Farm Payrolls. I believe that this will set the direction for the corrective movement in the dollar which we have been waiting for so long.

Let's see what the next week brings and how the Owl Smart Levels performs.

I'm Sergei Ermolov, follow me and don't miss more useful tools for profitable trading on the Forex market.