A full Half Year of Forex Trading Success!-- IFCN Wk 26 -Mon- Equity: $755.67

We are halfway into the first year of the challenge. We exceeded the 50% target for the year many weeks ago. Then had an inevitable drawdown and now we are beginning to climb back up in equity.

There were no official OneNightStand trades taken on Friday, so there were no exits on Monday morning. I stated “official” ONS trades because after official Friday trading hours - when there is ridiculously poor market still made with huge spreads for “clean-up” trades (meaning the firm gets to clean up on anyone who forgot to get out on time), the GBP/JPY went to new highs on the week. Some who still had orders left in the market got elected into the market and then when Sunday trading started got dumped on.

This is yet another reason why it is so important to get a feel for trading and trading hours with the least size practical so you can survive until you are consistently executing.

I've received some very nice letters recently from followers of the Infiniteyield Forex Challenge. The following is one which addresses the lack of trailing stops on FirstStrike trades---

Hi Joel,
Thank you for allowing me to take part in your challenge.

I have a question regarding trailing stops. The rule for trading the first strike method in your manual is to close each and every trade at the end of the week if they had not been stopped out. From your experiece with the first strike methodology, would a trailing stop diminish the profit potential of this method. The reason I am asking is that there are instances when a profitable trade could become a losing trade during the course of the week before the trade is closed out.
Regards
Xxxxx Xxxx


Good question.

Answer: Yes, and no.

Yes, from my experience with FirstStrike, most forms of trailing stops tend to diminish profit potentials. Except for those few that don't.

Finding those that don't hurt as much as they help is left up to you. The ones I know of that do work are of limited benefit. (And unnecessarily complex to include in the forex challenge. Simple is best for displaying a pure concept.)

Joel

Thanks for the good question!
_________________________

There were the 5 FirstStrike entries in the early morning hours. Again, the Gbp/Jpy pair has been putting on a command performance this week, leading to the downside, at last check a profit of 288 pips.

The following are this week's FirstStrike entries:
Eur/Usd: short @ 1.5488, stopped out at 1.5548 for a 60 pip loss.
Gbp/Jpy: short @ 207.36, stop 208.26. Trade in progress.
Gbp/Usd: short @ 1.9692, stop 1.9752. Trade in progress.
Usd/Chf: short @ 1.0381, stop 1.0441. Trade in progress.
Usd/Jpy: short @ 104.91, stop 105.51. Trade in progress.
Note: Any FirstStrike trade not stopped out before Friday gets exited on Friday just before 15:00 CST.

So far this week appears to be a correction-style week. If the moves last long enough, it could be a profitable week. I'm not holding my breath, but willing to wait out the week to see what we get.

Current equity is $755.67.

Joel Rensink
www.infiniteyield.com

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