Sunday, October 5, 2008

The Week's Silver Bullet! IFCN Wk 43 – Fri- Equity: $1,265.62

Quite a week. We had great results with two of our FirstStrike trades, a result which is always welcome.

We had extremely negative results in our XAG, or silver trades. That doesn't mean that buying silver is bad, but it means that there is a lot of market action that must be withstood until visible trends resume.

As we've seen many times in the past, tradable trends can appear seemingly from nowhere, and definitely on their own timetable.

Here's the week's recap:

The data below is as of Friday's close, Oct. 3, 2008:

Equity at End of Previous Week: $1,468.07

OneNightStand Exit(s) on 9/29/08 :

Completed FirstStrike trades this week:
  • Eur/Usd: Short @ 1.4449, stopped out at 1.4509 for a 60 pip loss.
  • Gbp/Jpy: Short @ 193.74, exited at 190.07 for 367 pip profit.
  • Gbp/Usd: Short @ 1.8230, exited at 1.7728 for a 502 pip profit
  • Usd/Chf: Long @ 1.1007, stopped out at 1.0947 for a 60 pip loss.
  • Usd/Jpy: Short @ 105.89, exited at 105.88 for 1 pip profit.
Total losses: 120 pips
Total profits: 870 pips
Net Gain: 750 pips ($93.15+)

OneNightStand 08/29/08 entry(s):

*Eur/Usd: Short @ 1.3747, stopped out at 1.3847 for 100 pip loss.
*Gbp/Jpy: Short @ 184.72, stopped out at 185.72 for 100 pip loss.
Realized Loss: $ 21.60.

Systems' End of week equity: $1,282.62.

Special Silver long positions:
50 unit XAG buy @ 12.00, exited at $11.00 for $50.00 loss.
100 oz. @ 10.75 on 9/17/08. Stoploss @ 10.75.
Position equity: $33.00 ( 10/03/08 close @11.08.)
(Silver Equity total weekly loss: $274.00.)

Total Loss for Week: $202.45 (13.7% weekly decrease)

I am constantly reminded of the true, old saying, “Live by the sword, die by the sword.” When you have highly leveraged positions, you get large changes in profits and losses. The silver trades were shining proof of that effect this week in the loss column.

Ironically, the moves – and the losses in the challenge account are directly attributed to other highly leveraged positions held by banks that have been forcing them to exit dissimilar markets (crude oil hedge funds) chaotically which affect other markets like silver (as part of the product baskets held by the hedge funds).

Next week should be equally tumultuous.

Joel Rensink

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