Sunday, November 9, 2008

Positions Maintain Status Quo! -IFCN Wk 48 – Fri- $1,554.20

Another choppy week due to the forex markets trying to resume more normal volatility. There are potential profits from this week's current trades, but nothing to stir the imagination. We can expect to get greater profits after the markets get closer to “normal”. When smaller weekly volatility becomes typical again we will be able to trade larger size. Then some decent profits can accrue when a trend week develops.

This week's action was close to a wash. Which is appropriate since there was very little major action in the currencies, just a lot of to-and-fro with news of the election sifting through everyone's consciousness.

Next week could be a trend week. I'm ready.

Here's last week's Friday recap:

The data below is as of Friday's close, Nov. 7, 2008:

Start of week equity: $1,558.01

OneNightStand Exit(s) on 11/3/08 :
Total ONS Profits: $ -0-
(Total increase from Friday's equity: $-0-)

This Week's FSP exits and entries-
  • Eur/Usd: Long @ 1.2903, exited at 1.2569 for 334 pips loss.
  • Eur/Usd: Short @ 1.2569, stopped at 1.2957 for 388 pip loss.
  • Gbp/Jpy: Long @ 159.69, exited Monday open at 1.6242 for 273 pips profit.
  • Gbp/Jpy: Short @ 154.84, stop 164.62. Current trade--
  • Gbp/Usd: Long @ 1.6412, exited at 1.5881 for 531 pips loss.
  • Gbp/Usd: Short @ 1.5881, stop 1.6439. Current trade--
  • Usd/Chf: Long @ 1.1664, stop 1.1460. Current trade--
  • Usd/Jpy: Long @ 97.26, exited Monday open at 98.49 for 123 pips profit.
  • Usd/Jpy: Short @ 97.18, stop 100.25. Current trade--
Current FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit) If not exited will be held until profitable on a subsequent Monday's open, stopped out or reversed by next week's positions.

OneNightStand 11/7/08 entry(s):

Current FSP/ONS trade equity is: $1,424.20

Special Silver long position:
Silver position equity: $130.00
(Current XAG price: $10.05 – 200 unit position average: $9.40)
Weekly total XAG position equity gain: (+$50.00)

Total Loss for Week: $ 3.81
(0.2 % weekly decrease)

Despite large apparent losses (pip-wise) in the the FirstStrike Plus trades, remember that the positions have been so small that they are really minor-- usually less than .5% per pair, sometimes much less.

That is the benefit of having the FSP method key off recent volatility. When the previous weekly range is small, then a small move can profit us handsomely. When the previous week's range is large, the latent risk tends to diminish.

Joel Rensink

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