This pair is aggressive.
I have switched to trade on this pair about a month ago. There are some money management to remind and more importantly, I have leart about this pair.
GJ can move by as much as 200-300 pips a day. On big movement day, expect 500 pips. I have experienced 700 pips.
Within a day, it can move up and down very rapidly 50 pips up then down, followed by up ..
It is nice to play long for this pair. A 100,000 would earn you 20EUR or 13USD a day on interest - a term call carry trade. Of course the reverse is true. So if you can, do not hold to a short position overnight or for too long.
When I trade I use only 1-2% of my capital for a single transaction. I do not open more than 10 transactions, which would cost me more than 20% of my capital.
Assuming you long a position, GJ move against you. The remaining 80% is for you to buffer any margin call while you hold on to your position to collect the daily interest. 80% is needed because of the big movement GJ can create. Within a few days, you could be seeing some -1000 pips paper losses for a single transaction!
Assuming you short a position and GJ move against you. Don't panic. If you know that within a day you can recover the position, do hold. But if you know that it will continue to go up - open 2 long positions to counter 1 short position. In doing so, you can earn double the interest and double the profits. This permit you with choice to close your short position if you want to.
Note I use 2 accounts - one for long position and 1 for short position. Money in these accounts can be transfered to each other withing minutes.
Looking at the above assumptions, AGAIN and again, it will be good to limit one transaction to 1-2% of your capital. You may take smaller profits, but it will permit you to play more positions to your advantage.
There is no perfect trading strategy to play for GJ.
This is what I use:
I use EMA21, EMA55, EMA100 and EMA200 with WMA5, on 15min chart, 1 Hour chart and day chart.
In addition, 1 hour chart and day chart has CCI21 coupled with BB(21,1) and BB(21,2) for trend prediction. I am not going into detail about this method, but for those I have personally instructed should know how to use them.
In a short 15 min play, I first observed the trend for the day, then the trend for the 1 hour. Say the trend (using CCI and BB) for the day is UP with no clear resistance until a certain level. Then looking at the 1 hour chart, I use the EMAs. There is always 2 sceanrios - breakout and reversal.
Assuming a case of breakout. It could be a case of breakout with WMA5 coming up from below or a case with WMA5 sailing clear of all EMAs and heading up. Using 15min chart
For the case of a breakout from below, place trade at price above that you are expecting a breakout - use EMA to help and the next EMA to TP.
For the case of a breakout up clear of EMAs, switch to 1 hour chart and maybe day chart, to set the breakout price and TP at the next EMA (1 hour chart or day chart). Sometime, fib retracement has to be use, when you run out of day chart EMA to guidance.
For reveral, set the price below using at a support EMA and TP at the EMA above. You may want to set multiple orders at various EMAs
This is the first explanation I give on trading GJ. Follow my trade dairy for the day trade.
I may not be able to show you all the trade I did for the 15min - because I could be opening and lose orders a number of times within that few hours. For the past weeks, my average gain is around 200 pips a day.
