Tuesday, December 2, 2008

The Trend..., Is! -- IFCN Wk 52 –Tue- Equity: $1,549.88.

After Monday's opening and the taking of a couple of profits from Sterling dominated trades – the Pound promptly started falling decisively, triggering the FirstStrike Plus sales of gbp/usd and the gbp/jpy. At the same time, we received a new sale in usd/jpy seen below.

While these profitable trades were stacking up, the XAG position took a lot of heat, silver dropping $1.00/oz from Friday's close. Just when you thought it might be safer to be in the markets....

About the serious profits we've logged in the IFCN “challenge” accout--- we're apparently not alone.

According to Parker Global Strategies LLC., Foreign-exchange funds had their biggest monthly returns in October since 2003.

John W. Henry International Foreign Exchange Program of Boca Raton, Florida, was the top-performing fund in October, gaining 32.7 percent.

Parker Global further went on to say, “The month saw a continuation of the dollar appreciation due to a combination of a flight to safety out of risky emerging-market currencies and into the stable dollar and the hoarding of liquidity by U.S. banks, creating a vacuum of dollars.”

Most of the funds that Parker Global follow gained in October, with 46 of 71 programs reporting positive results and 25 posting losses. They added an interesting footnote: funds which are generally based on computer models gained 3.02 percent, while discretionary traders, were up only 1.43 percent as a group.

That probably has to do with the “surprise factor” which semi-mechanical methodologies profit from.

As a personal side note: John Henry, while using numerous mechanical methodologies, also uses a fair amount of discretion concerning how much size he trades. Hence, his larger than normal returns.

I congratulate JH on his success. Since he is the consumate trend follower, he obviously was selling the Euro and Pound Sterling at the same time we were.

The week's current FirstStrikePlus trades:
  • gbp/usd: Short @ 1.5149, stop 1.5420. Trade in progress.
  • eur/usd: Long @ 1.2742, stopped at 1.2585 for 157 pip loss.
  • gbp/jpy: Short @144.02, stop 146.90.Trade in progress.
  • usd/chf: Short @ 1.2062, stop 1.2225. Trade in progress.
  • usd/jpy: Short @ 94.38, stop 95.51. Trade in progress.
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: $1,509.88

Silver position equity: $40.00
(Current XAG price: $9.60 – 200 unit position average: $9.40)
TOTAL Equity: $1,549.88.

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: 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!

1 comment:

jj7000 said...

Hi, I have a question for you. I can't put my orders in at 1:00 a.m eastern. Will it effect the system by putting it at 6:00p.m -10:00 p.m