Saturday, December 22, 2007

Week 2- $533.65 Total equity.

The end of the week has come and we stand at $533.65 total equity.

I exited EUD/USD at 3:00 PM CST, covering Monday's FirstStrike short position from 1.4391 at 1.4358 for 33 pip profit. We definitely could have doubled or tripled the profit by covering at obvious support levels that it just couldn't breakout below. I try not to deviate very often from my entries or exits, because the only reason we get paid as traders is due to the accurate execution of our methods. In the long run, the strong tendencies we trade on overwhelm short term opportunities.

For those watching the trades in realtime-- what did you think about how the USD/JPY FirstStrike came alive right after 7:00 AM? It took off like a rocket after not going anywere for the previous week. It also triggered my Sure-Breakout system that I mentioned last week.

I exited the FirstStrike USD/JPY trade just before 3:00 PM CST for a 59 pip profit. Interestingly enough, the OneNightStand USD/JPY trade entered at the same place as the FirstStrike trade so we had a double position all day, and now only hold ONS over the weekend until Monday morning. I will talk about this type of trading situation next week, about how you can dramatically multiply your trading profits with little extra risk.

Below is the recap. Even though FirstStrike had more pips in losses than profits from the winners, the week turned out to be only a small loss because the money management algorithm placed larger positions on the two winners. Sometimes the beneficial effect is amazing, like this week. It doesn't always work out that way, unfortunately. The benefit of advanced money management is to moderate what can be moderated without getting "cute".

This week's Alpha account trading recap:

Start of week equity: $535.40
Completed trades:

EUR/USD: SELL 1.4391, stop 1.4451. -exit on Friday 33 pip profit
GBP/USD: SELL 2.0134, stop 2.0194. -stopped out 60 pips loss
USD/JPY: BUY 113.61, stop 113.01. -exit on Friday 59 pip profit
USD/CHF: BUY 1.1570, stop 1.1510. -stopped out 60 pips loss
GBP/JPY: SELL 227.81, stop 228.41. -stopped out 60 pips loss
Total of 180 pips in losses
Total of 92 pips profit

OneNightStand Exit(s) on 12/17/07 :
GBP/USD: Sold @ 2.0181 on 12/14/07 - exited @ 2.0284. 3 pip loss
OneNightStand 12/21/07 entries:
Bought USD/JPY @ 113.60. Not stopped out. Exit Monday (12/24/07) morning at Midnight, 00:00 CST.
End of week equity: $533.65 (includes unrealized P&L)
Total Gain on Week: $ (-1.75) (less than 1%)
Unrealized P&L:           $ 6.55 (+) (OneNightStand trades)

See you Monday!  
For those going on trips for the holdidays - be safe!

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: and tell me the address you would like it sent to.

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