Updates: Week Ending July 25, 2025

Can artificial intelligence (AI) tools change the way you do market research or trade? I think so, if done right. 

First off, ignore the clickbaity YouTube videos that use ChatGPT to generate trading strategies for you to back/forward test. Maybe you’ll get somewhere, maybe you won’t.


However, I do think conducting market research and staying on top of high-impact events has gotten easier. This is something I’m beginning to experiment with through Perplexity.ai and their “Labs” feature.

Perplexity promotes Labs as a playground where you can bring an entire idea to life. What’s my idea? Building your own market research report that summarizes high-impact macroeconomic and currency news on a daily basis, generated in an easy-to-read manner.


I have yet to build anything out in Perplexity Labs, but I think there’s potential. It’s likely I’ll share a further rundown of what progress I make with this feature as it creates tailored market reports for me.


While this idea remains work-in-progress, let’s move onto the trade recap for this past week.


Trade Recap:


I was flip-flopping strategies and take profit and stop loss parameters over the past week, so I’ll focus on one winner, one loser, and what my learnings were.


The winning trade was on EURGBP.


EURGBP Daily

EURGBP started its uptrend at the end of May. I plotted this ascending trendline with the purpose of detecting a reversal. If price crosses below this trendline, this would be my early warning signal that I should consider having a bearish sentiment.


The latest horizontal level on my chart marked the previous high that price reached. The latest two candles indicate price is trying to break above this horizontal level and trend higher. This is where I switched to the 1-hour timeframe to optimize my entry.


EURGBP H1


I plotted a Darvas box (in pink) to mark my intraday range. As price broke above this range, that signaled momentum, and I entered accordingly.


Since the daily average true range (ATR) was 41.6 pips, I set a take profit and stop loss of 20 pips (approximately 50% of the daily ATR). 


In this case, price hit my take profit approximately seven hours later. This worked out perfectly because I avoided incurring swap charges, which would’ve occurred if I had held this trade across multiple days to ride the daily trend.


Switching gears over to a losing trade, here’s one that I experienced on EURSGD.


EURSGD Daily


The daily timeframe presented a great breakout opportunity. Price made a daily high in late April, and this level was hit again in July.


When price hovered around this level a few days ago, this was my signal to go down to the hourly timeframe and plan my entry.


EURSGD H1


Over on the hourly timeframe, I drew my Darvas box and placed a buy stop to enter a trade when price crossed the upper range boundary.


This trade did not work out because price crossed above the upper range boundary and then reverted back below it. I ended up taking a loss on this trade.


This is good progress as I build on top of another learning - not all breakouts are the same. More specifically, I have a more refined system for detecting higher-probability breakouts.


  1. Noise - EURSGD’s intraday chart was very choppy. Price was already bouncing back and forth quite a bit, so what’s to say my particular breakout entry was going to be the big directional move?
  2. Exhaustion - even on the intraday chart, price never moves vertically up or down. There are pullbacks, and it’s better to optimize your entry when the pullback move (price moving in the opposite direction) has exhausted. Below is an example showing what I mean.
CHFJPY Daily


After the wedge breakout, the daily chart shows a very strong uptrend. Even if you were to watch this in real-time, it’s basically possible to see that this was a strong uptrend by the lack of red candles. Furthermore, a red day rarely wiped out two or more days’ worth of gains, which signaled very little selling strength.


CHFJPY H1


On the hourly timeframe, you can see that there are periods where price has trended down for quite a few hours at a time. 


Since I know the daily structure is an uptrend, I can actually wait for price to cross above each intraday descending trendline before placing my entry. This way, I’m maximizing my probability of winning because I’m trading in the direction of the broader uptrend at a point in time when sellers are no longer able to push the price lower.


I don’t have a focus for pairs-in-play for next week. I’ll be spending my quiet time focusing a bit more on Perplexity Labs and backtesting the confluence of daily and intraday price action.