Sunday, July 13, 2008

Dollar Takes a Hit Despite Good News! --IFCN Wk 31 -Fri- Equity: $729.65

Eur/Usd jumped to new weekly highs after the data on exports and imports was released. And, although the information released was actually fairly bullish for the dollar, the dollar dropped heavily against all major Forex currencies because of solvency concerns for Fannie Mae and Freddie Mac agencies.

Ben Bernanke is testifying to the US Senate next Tuesday, July 15th, for a semi-annual release of Fed concerns, policies and aspirations. This could be significant for next week's moves.
Here's the week's recap:

The data below is as of Friday's close, July 11, 2008:

Start of week equity: $730.43

OneNightStand Exit(s) on 06/07/08 :

Completed FirstStrike trades this week:
  • Eur/Usd: long @ 1.5691, exited Friday at 1.5921 for a 230 pip profit.
  • Gbp/Jpy: short @ 211.23, stopped out at 212.13 for a 90 pip loss.
  • Gbp/Usd: short @ 1.9717, stopped out at 1.9777 for a 60 pip loss.
  • Usd/Chf: short @ 1.0251, stopped out at 1.0311 for a 60 pip loss.
  • Usd/Jpy: long @ 107.75, stopped out at 107.15 for a 60 pip loss.
Total losses: 270 pips
Total profits: 230 pips
Net losses: 40 pips (-$2.33)

OneNightStand 07/11/08 entry(s)
*Eur/Usd: long @ 1.5911. To be exited Monday morning, 00:00 CST.

Unrealized Profits:      $   1.55
End of week equity: $729.65.(includes unrealized P&L)
Total Loss for Week:      $ .78 ( 0.1% weekly decrease)

This was actually quite an amazing week. I would never have expected to be virtually unchanged after the way this week started.

With oil prices swinging as they are and the worries about government mortgage agencies failing, you get large moves that test a trader's mettle.

Next week should be interesting just because of the action we saw this week.

Joel Rensink

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Frank said...

I have a question. Why is it $730 now? Am I missing something? You had a total of -40 pips.

Joel said...

All pips aren't created equal.

Example: The gbp/jpy trade lost exactly the same as the gbp/usd trade. One trade had a 60 pip risk and the other 90. Different position sizes make the per-trade risk the same.

And, my money management algorithm weights greater position size on some pairs.

Thanks for noticing.