Thursday, December 27, 2007

Week 3 -Thu- Current Equity: $557.20

Well, it is turning out to be a decent trading week after all.

This morning I got triggered on the long USD/JPY trade and quickly got stopped out for a 56 loss. That makes 3 total losses, the GBP/USD, GBP/JPY, and the USD/JPY. The short USD/CHF and the long EUD/USD – entered yesterday – are on a tear!

I'm pretty sure that none of the potential OneNightStand trades will execute tomorrow. The long term trends of the non-US currencies appear to be reasserting themselves. That is good for us. Trending markets are easier to make money in.

I mentioned last week Friday that I would suggest how it is possible for you to get additional profits for little extra risk. This situation arises when you have already taken a trade in a currency pair that is subject to a potential OneNightStand trade.


You are already long the EUD/USD from some other system and then Friday comes along and one of the OneNightStand trades is to go long the euro if the price of yesterday is exceeded. If your exit criteria on your current trade is not triggered and the ONS trade triggers you have the opportunity to take advantage of the additional “new” trade potential of ONS and exit your current trade on Monday morning. Since profits tend to have strong correlation with time in the market, converting a trade that would normally only have a life of around 4 days can safely be converted into a trade with 6 days.

Note: I would recommend making this “trade conversion” ONLY when the ONS trade is in a profitable position by the end of the day of entry. Otherwise, in the case of any other system you might be following..., follow its exit criteria. In the case of the other system being FirstStrike, exit just prior to 3:00 PM CST – Friday. There is strong mathematical evidence that suggests that trades which are profitable on the day of entry have much stronger potential than those which experience longer loss periods before going into profits.

I have a floor trader buddy (now retired) who made more than half of all his lifetime trading wealth only holding exceptionally profitable daytrade winners overnight.  He considers it the greatest secret he possessed.  You didn't hear this from me.  : )

By switching trades you avail yourself of additional edge and potential to increase your return without increasing your risk materially. Feel free to test this concept with any other methods (that have an edge) you wish, and you will be pleasantly surprised how beneficial this can be. I call this effect: The Power of Being In.

Until tomorrow.

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 which address you would like it sent to.

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