FirstStrikePlus Reversal Protocol-- IFCN Wk 48 – Mon- $1,563.21

We're getting trades, just not very profitable ones. But then again, our exits of last week haven't been too bad and the FirstStrikePlus concept of reversing existing trades has proven to be cost saving-- saving of the total stop being hit on the previous losing position. And XAG is holding.

I've received numerous questions about the protocol of reversing a trade in a pair from long to short before the stop is hit in the first trade--- perhaps it was unclear for you too. The explanation follows after the questioning email.

(Thanks for the question—Mr. E.)

Hi Mr. Rensink!

I have a question about First Strike Plus. First I
want to thank you for your Strategie, it works very
well. I have some different Brokers, one is Oanda, and
if we trade First Strike Plus, it is possible that
there is a Long Trade running and then we'll open also a short
trade, like this week in EUR/USD.

Let's say I have a running long position with 900 units
and I open a short position with 1000 units, the
problem at Oanda is that I only have the difference of
100 units running, because hedging is not possible at
Oanda.

Do you trade the other position on another account? Or
do you only trade the difference of these two orders?
I think you trade both orders at different accounts,
but I am not sure.

There is no difference as long as both orders are
open, but when one is closed I don't have running the
full unit size.

E------

Answer:
Hello E-----

If you are long a pair from one week, like the Gbp/Usd pair last week--
and you haven't been stopped out yet--- when the next trade in the pair
is signaled as a short --- you exit the long pair from last week at the
same order that you are now going short. This way, you are getting out of
the last trade which was not working anyway with a smaller loss than you
would if the original stop got hit.

Does this make sense to you?

This is a stop and reverse concept. I did allude to it in the
FirstStrikePlus material, but others besides yourself had trouble
fereting out the information.

In the case you mentioned, all you have to do place the sell order for
1900 units, 900 will cancel out the previous long and then you will have
a short of 1000 units.

This should clear up your understanding of the concept. No hedging is
necessary - the method can be traded in the same account. You only will
have on- at most- one trade in one direction per pair.

Best wishes.

JR

I trust this will clear up some of the confusion.

This morning I was able to exit two of the 4 remaining FirstStrikePlus trades profitably just after Midnight CST. The other two got exited when the FirstStrikePlus numbers for today were executed to the downside, as can be seen below:

Last Week's trades-
Eur/Usd: Long @ 1.2903, exited at 1.2569 for 334 pips loss. (originally 414 pip risk)
Gbp/Jpy: Long @ 159.69, exited at 1.6242 for 273 pips profit.
Gbp/Usd: Long @ 1.6412, exited at 1.5881 for 531 pips loss. (originally 902 pip risk)
Usd/Jpy: Long @ 97.26, exited at 98.49 for 123 pips profit.

Here are the current week's FirstStrikePlus trades:

• Eur/Usd: Short @ 1.2569, stop 1.2957. Trade in progress.
• Gbp/Jpy: Short @ 154.84, stop 164.62. Trade in progress.
• Gbp/Usd: Short @ 1.5881, stop 1.6439. Trade in progress.
• Usd/Chf: Long @ 1.1664, stop 1.1460. Trade in progress.
• Usd/Jpy: No current trade

FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit) See complete rule-set for effective trade management.
Trading account equity: $1,465.21

Silver position equity: $98.00
(Current XAG price: $9.89 – 200 unit position average: $9.40)
TOTAL Equity: $1,563.21

Unfortunately, this trading recap is getting tedious and complicated. I will find a simpler way to relate the details of the account.

Have a good morning.

Joel Rensink
www.infiniteyield.com
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: newsletter@infiniteyield.com 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!