Monday, September 8, 2008

FirstStrike has Another Great Day! --IFCN Wk 40 -Mon- Equity: $1,325.86

FirstStrike's value is self-evident after a day like today. When the currency markets are very strong or very weak, volatility-breakout methods are incredibly powerful.

The higher gap openings on the gbp/usd, eur/usd, and gbp/jpy were gifts to our methods.

What few in the forex trading world understand is that “real” trading risk drops when volatility increases. Extricating larger profits with lower implied risk is what gives you a greater edge in this environment.

I was contacted by a number of the Magnificent 7, (last month's London Squeeze workshop attendees) they too had outsized winners over the last week and today – in addition to the profitable FirstStrike and OneNightStand trades they took.

Fortunately for them, London Squeeze had similar profits to FirstStrike today. The important difference for the “7” using an additional daily-chart-based method like London Squeeze is – they will have a chance to take some of this day's profits quicker than FirstStrike. Efficiency can be higher, with the only downside being increased frequency of trade.


We got filled on all five of the week's FirstStrike trades and all of them are profitable so far. Some, like the short gbp/jpy and gbp/usd are extremely profitable. Many who took the trades are itching to take the profits. I understand completely. If you are in these trades, remember, it is your money. You can take the profits if you wish. Maybe it will prove to be the most profitable thing to have done, after the week is over.

In the Alpha Challenge account, I will hold until Friday if not stopped out.

In the past I've mentioned that when we get large profits on any FirstStrike trades, it is acceptable to move your stop to breakeven. When one of our regular currency pairs attains 200 pips (gbp/jpy ~ 300 pips), I do not wish to experience a loss if the market reverses somehow, so I usually move the stop-loss on the position to the entry price. I have done so on 4 of our existing trades.


The following FirstStrike trades were entered this morning:
  • Eur/Usd: Short @ 1.4364, stop 1.4364. Trade in progress, stop-loss at breakeven.
  • Gbp/Jpy: Short @ 194.27, stop 194.27. Trade in progress, stop-loss at breakeven.
  • Gbp/Usd: Short @ 1.7872, stop 1.7872. Trade in progress, stop-loss at breakeven.
  • Usd/Chf: Long @ 1.1199, stop 1.1199. Trade in progress, stop-loss at breakeven.
  • Usd/Jpy: Short @ 108.31, stop 108.91. Trade in progress.
Any FirstStrike trade not stopped out before Friday-- exits on Friday just before 15:00 CST.
Have a good evening.

Current equity is $1,325.86.

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, Hotmail or Yahoo addresses. 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!


The Archiphage said...

Instead of moving stops, I took some size off and left the stops where they were. Time will tell which way was the better way to go. Still... wow! We are on some kind of streak here!

MarcoA said...

Great blog. It's fascinating that your method seems so 'hands off'. Just a few minutes at beginning and end of week allows you to pick up returns equal to/better than much more active market following systems. Thanks for posting. This should be an eye opener to many.