Wednesday, March 26, 2008

65% gain in 106 days!!! From Free Systems! -- IFCN Wk 16 -Wed- Equity: $827.35.

A few minutes ago I exited my remaining FirstStrike trades- the long Eur/Usd and the long Gbp/Usd at the market.

I have time conflicts for the next few days, and definitely for Friday afternoon-- when I would normally exit, so I decided to exit now. I could raise my protective stops to limit loss potentials, but prefer to simply exit and wait for the next trades when I can be at the stick like usual.

I'll probably miss out on more profits this week, but sometimes life interferes with your trading. There usually are costs to pay for that happening.

Besides, with the account up more than 65% since it has begun-- I'm quite happy to be flat until Thursday night's OneNightStand signals.

OneNightStand trades will be issued as usual.

This is the recap of FirstStrike trades for this week.

  • Eur/Usd: BUY 1.5410, stop 1.5350. Exited @ 1.5844 for 434 pip profit
  • Gbp/Usd: BUY 1.9819, stop 1.9759. Exited @ 2.0079 for 260 pip profit
  • Gbp/Jpy: BUY 198.05, stopped out @ 197.45 for 60 pip loss
  • Usd/Chf: SELL 1.0131, stopped out @ 1.0190 for 59 pip loss
  • Usd/Jpy: BUY 100.42, stopped out @ 99.82 for 60 pip loss
Account Equity: $827.35

By the way, being up 65% (up $327.35 over the initial $500.00) in 106 days is equivalent to a 224% annualized return. Not too bad.  An average $30,000 account would have gained almost $20,000.

Thank goodness my personal account has had proportionate gains, or I would be feeling deprived.  

Maybe I should quit for the rest of the year! I'm sure those words will come back to haunt me after the next drawdown starts....

Here is an excerpt of an early post about the Infiniteyield Forex Challenge:

In addition, our trades will have precise risk control, so if the trade goes bad quickly after entry, we'll be out quickly waiting for our next trade.

Professionals only trade the market when they have a very good reason to.

They never enter because of "having a feeling".

Professional trading revolves around having a PROVABLE informational edge. Not because they have "news" that others don't have, but because they know something about the market, a bias that is not understood or appreciated correctly by the vast majority of market traders.

As incredible as it may seem:

You don't need much of an edge to be a winning trader.

Just the awareness of what that edge is, how strong it is, and a willingness to go through the necessary motions of executing it with the right amount of your capital-- will put you in the top 5% of all traders. This blog will work at proving that concept.

This forex trading challenge will be conducted trading two primary methods which have a proven* mathematical edge. It is possible that rarely, additional low risk/high potential trades may be taken due to unique market circumstances that occur occasionally.

The first method is a durable breakout method which has worked well over time on major trading pairs. It is called the "One Night Stand". It was discovered/promoted by a trading researcher named Joe Krutsinger. The ruleset for the system can be found at A more complete explanation and current trading stats can be obtained from subscribing to the Infiniteyield Forex Newsletter, free to all those reading this blog.

The second method is another very durable trading method called FirstStrike; my own method based on the time-honored concept of volatility breakouts. I have been trading this method profitably for more than 20 years. The complete ruleset for this method and the protocol its application is available to Infiniteyield Forex Newsletter subscribers. It is based on a market's impulse from the beginning of a significant time frame having predictive power over succeeding timeframes. Hence, a mathematically provable edge.

That's one of the main reasons for this challenge and blog. People will see both the good and bad of trading, a bit accelerated.

The good thing is: People will be able to see how trading really works when you are trading with an edge. It takes a lot of determination and personal resolve to stick to a method and trading plan when you are experiencing large losses..., or large profits.

When money is on the line, humans tend to deviate from their "normal" behaviors significantly. Usually when can be most detrimental to their wealth.

-----End of excerpt-----

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 to which address you would like it sent. Please do not use AOL or Yahoo addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!


Malakas said...

i'm following from december, don't understand your money management, but the 2 systems are really beautiful.

Thank you JOEL

Joel said...

Thanks -malakas- for the nice comment.

Whatever money management that you use for these trades will make your equity curve more or less extreme than mine.

Most professional traders use some form of Fixed-Fractional money management. To achieve somewhat similar results to the blog account you might try risking approximately 1.5 percent per trade.

The money management algorithm I use for this challenge is a special one that is used for fund trading. Though very robust, it is not a simple Fixed-Fraction calculation. Occasionally, it will allocate a larger percentage of risk to some trades and not others, based on market risk. When some of these trades become successful, the return is potentially very large.

Thanks again for watching this site--

Joel Rensink