How I Profited 570 Pips In GBPCHF When Swiss National Bank Discontinued Minimum Exchange Rate

Hello Traders,

sometimes crazy things happen when you are trading forex. Like making 570 pips in 5minutes and price moving 2288 pips in 1hr.

That crazy thing happened on Thursday…

Thursday just began like any other day trading day. I placed a sell trade on GBPCHF  and here are my reasons for placing this sell trade:

• notice the upper channel trendline? Price was heading up to it (see chart below).
• It coincided perfectly with a major resistance level at around 1.5532 level as well, which if you are interested, you go to the weekly chart, you will see what I’m talking about here (so confluence factor comes into this trade setup).
• I don’t actually remember what timeframe I took the trade in but I saw a bearish reversal candlestick and then I shorted it. My stop loss was about 30 above the resistance level.
• My take profit target was set at 1.4973 so if  price hit the target, I would get 570 pips profit. (That will take me roughly a week or two to hit my take profit target, I thought to myself as I set my take profit target)

Here’s the trade setup and where I took the trade.

After placing the trade, I went outside of the house, it was already dark, and looking up into the sky seeing the dark storm clouds in the night sky… I thought to myself, “Looks like a storm is coming.”

I guess it was a sign of what was about to happen a few minutes later.

While I was outside, like 15meteres away, somehow I just happened to look at my computer screen  and I saw this very long red line going all the way down…

What the??? This can’t be!  I thought. That’s a 1hr chart of gbpchf and how can price travel so fast down like that? Are my eyes playing tricks on me???

I rushed  back inside. I could not believe my freaking eyes! This was what I was seeing happening in the 1hr timeframe:

I LOOKED AT THE TRADE I TOOK, WAS IT STILL RUNNING?

No. It wasn’t running. Did I suffer a loss? No. I looked at the balance?  It looked different…huge. This was not the balance I saw and left just a few minutes ago.

I rubbed my eyes, is this a trick? I looked at the Account History, I saw that the trade was closed with a 205 pips profit.

I could not believe it!  How is this possible? 205 Pips of profit would take an average of 2-3 days to achieve but this got achieved within 5 minutes!

By the way, the 1hr candlestick was not even closed yet. It was still going down as I was trying to take all these in and seeing the red long candlestick keep going down.

As I saw the candlestick keep heading down, I wished that I put my take profit target on 1.4000 level.

As a matter of fact,(this is funny) I thought about doing exactly that when I was looking for a level to place my take profit target, but my mind said ” Oh, really? That will take one year to reach that profit level!”

Ok, then, what nearest support level do I see on the daily timeframe then? 1.4973. Lock it in! That’s how I set my profit target.

Anyway, By the time the one hour candle closed, the price had moved like 2,288 pips. One years price move was achieved one hour!

That’s mental!

LETS PUT THIS MASSIVE GBPCHF PRICE DROP IN PERSPECTIVE

How? By looking at in the 1month timeframe:

What you see is a roughly a year’s price move achieved within 1hr…

WHAT CAUSED THE SWISS FRANC TO MOVE 2000 PLUS PIPS IN 1HR?

I did not see any major news scheduled on forexfactory.com/calendar scheduled so I was wondering what was going on. A few minutes later, the news came out on forexfactory and this was the news the moved the GBPCHF currency pair like that:

Obviously, the Swiss National Bank decided to discontinue the minimum exchange rate 0f 1.20 per euro and at the same time lowered the interest rate.

The reaction to that UNEXPECTED news was the massive downward price moved on GBPCHF, USDCHF and pretty much any currency pair that had a “CHF” in it.

I WAS QUITE PLEASED WITH MY TRADE BUT THEN I SPOTTED SOMETHING THAT DID NOT ADD UP

• I assumed that because I saw price went though my take profit target level,  therefore what profit I made was closed automatically at the take profit price
• Then I looked closely at the account history and saw that my sell trade was closed at 1.5340 when it should have been closed at 1.4973, which was my take profit target.
• The price hit my profit target and I was supposed to get 570 pips but instead I got only got 205 pips.
• That means I missed out on 365 pips of profit.

So what happened here? I did not close the trade…who closed it?

Answer: the forex broker closed my profitable trade.

Why?

Answer: I don’t know.

What Did I do next?

Answer: The forex broker was contacted, provided screenshots trade etc…and issue is being investigated.

Fingers crossed, I will get my 365 pips profit credited to the trading account soon. This will bring my profit to 570 pips which is what I should have.

I will update that story here when it happens.

SUMMARY

Was it luck that I had such a good trading day?

Answer: I would say no. I wasn’t lucky.

Why?

Answer: Because I had a system to follow-channel trading using price action and confluence as well. My trade was based on that system and I never knew that such a big news was going to be released. So I don’t call it luck.

If I just placed a trade at random and such a move happened, then that is called lucky and that is the definition of luck.

All the trading tricks, techniques about how to take such trades are on my ebook, its free. Download link below or above (top right corner).

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