---Wow!--- Up 10.9% in One Day! – IFCN Wk 54 –Tue- Equity: $2,185.61

Wow!

That's all one can say after a day like today. After the Fed news came out this afternoon, markets bolted higher, from currencies to bonds, and commodities like natural gas and silver.

We finally got filled on our last FirstStrikePlus trade of the week, short the Usd/Jpy @ 89.21.

The Federal Reserve cut its target interest rate to a range from zero to 0.25 percent, making the U.S. dollar the lowest-yielding currency of all industrialized nations. This means that buying virtually any currency vs. the dollar is a “carry” trade. Even the Japanese yen, which has had lowest-interest-rate status for years, now has higher interest rates than the dollar.

In addition, the Fed declared that it will “employ all available tools” to stimulate economic growth.

The euro exceeded 11 week highs against the dollar as the central bank said it will expand debt purchases (like buying Treasury Bonds) to fight recessionary pressures, adopting a policy known as “quantitative easing”. The Wikipedia definition of that term is that, “... the central bank prints new money, in order to increase the supply of money.”

Can anyone spell I-N-F-L-A-T-I-O-N ?

A rule to tattoo in your brain:
Money once created never disappears. It shows up eventually, and more money supply without a corresponding increae of goods decreases the value of what money you have.

One of the few places you can directly profit from inflation is through holding commodities, gold or silver, or owning currencies that are not inflating as quickly as the target currency.
Expect more moves like we saw today. Owning silver (XAG) is not a detriment when inflation appears.

The week's current FirstStrikePlus trades:

• gbp/usd: Long @1.5173, stop 1.4993.. Trade in progress.
• eur/usd: Long @ 1.3676, stop 1.3417. Trade in progress.
• gbp/jpy: Long @139.23, stop 135.91. Trade in progress.
• usd/chf: Short @ 1.1582, stop 1.1763. Trade in progress.
• usd/jpy: Short @ 89.21, stop 91.51. 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: $1,827.61

Silver position equity: $358.00
(Current XAG price: $11.19 – 200 unit position average: $9.40)
TOTAL Equity: $2,185.61

Yet another new equity high! This will not continue forever, but the 337% increase to the Challenge account in 54 weeks – with hundreds of individual trades – suggests that volatility breakout methods still can work quite well.

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!

Go With the Flow! -IFCN Wk 46 – Equity: $1,378.14

This is turning out to be an out-sized (profitable) week for the newly instituted FirstStrikePlus.

Because the forex market has presently shown a strong tendency to whip back and forth, simple fixed volatility breakout points are subject to being triggered and being stopped out within minutes. Even so, they do work, because if the market doesn't immediately stop out the position initiated, the resulting profits from these types of markets can be and have been..., extreme.

It is better for overall net profitability and for proper trading education to trade with a volatility-adjusted method such as has been adopted.

Here are the current week's FirstStrikePlus trades:

• Eur/Usd: Short @ 1.3367, stop 1.3538. Trade in progress..
• Gbp/Jpy: Short @ 174.07, stop 178.65. Trade in progress.
• Gbp/Usd: Short @ 1.7193, stop 1.7452. Trade in progress..
• Usd/Chf: Long @ 1.1401, stop 1.1302. Trade in progress.
• Usd/Jpy: Short @ 100.95, stop 102.47. Trade in progress

FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit) See complete ruleset for effective trade management.

Current trade equity is: $1,315.14
Silver position equity: $63.00
(Current XAG price: $10.13 – 100 unit position average: $9.50)

TOTAL Equity: $1,378.14

Many of you have contacted me about the large profits you have accrued, wondering if I am planning on implementing a trailing stop, such as the 50% trail which I have used in recent weeks. You may certainly go ahead and use the technique if you wish, on part or all of your position. It should smooth your equity curve, but it may also stunt the potential of your trades in the current market.

We'll only know for sure by the time of our exits.

With FSP, part of the larger edge it provides is the extra time it can stay in a trade. I may avail myself of a trailing stop in the future, but it will likely be only on rare occasions. It is tempting when you have 700+ pips in a trade to trap a measure of profit.

Have a good evening.

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!

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
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!

Up! Forex Challenge Account is UP 7.5% This Week on Strong Dollar! -- IFCN Wk 25 -Thu- Equity: $750.12

Nine weeks ago we were hitting new equity highs for the IFC account. It looked for a while like the upside move of the Eur/Usd would never end. But of course, we knew it would have to. And we profited until it quit.

That was then – this is now! After a couple of months of chop and drawdowns, we are beginning to see some life in the account again.

We are sitting on larger gains due to huge moves this week in the Usd/Chf, Usd/Jpy and Gbp/Jpy all trades with a positive carry. The next few weeks should be interesting for dollar carry trades!

The Gbp/Usd has been sideways this week and it is appropriate that it got stopped out. It is a shame the FirstStrike long Eur/Usd order got triggered first and we didn't get short for the big move down. Some of you have reported that you took the short anyway, and I'm glad you did. In my other accounts I got short Euros early Tuesday, so I am not unhappy with the week's performance.

_____________________

Everything is a trade-off in trading.

It would have been a much bigger week in the IFC account if the position sizes were as aggressive as a normal week. My money management does not allow the same size positions when the potential time in the trade is less than average. Holiday weeks get less money. So we are making less money, but with substantially less risk also. That is the trade off.

No problem. If these markets keep moving, it will be hard for us to not profit proportionately.

We are still long 3 FirstStrike trades from Tuesday-

• Gbp/Jpy: long @ 205.53, stop 204.63. Trade still in progress.
  
• Usd/Chf: long @ 1.0311, stop 1.0251. Trade still in progress.
  
• Usd/Jpy: long @ 103.82, stop 103.22. Trade still in progress.
  

Current equity is $750.12.

The market may set back some. And possibly we may get some ONS trades for Friday. My only concern about the ONS trades that might get elected is that most of the move for the week may be already expended.

ONS requires continued momentum for its trades to work well. Tomorrow will be another opportunity to see how the systems fare.

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. Nothing personal, but 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!

Alpha account is up 22 percent-- --IFCN Wk 12 -Thu- Equity: $593.66

What great action this week!

The account is sitting at $593.66 current equity, including unrealized profits!

This is what the currency markets look like when they want to go somewhere. If the Usd/Jpy short had been entered, we would have had another 250 pips.

FirstStrike trade status this week:

• Gbp/Jpy: Short @ 210.64, stopped out @ 211.24 for a 60 pip loss.
  
• Usd/Jpy: Long @ 107.91, exited @ 107.67 for 24 pip loss
  
• Eur/Usd: Long @ 1.4867, stop 1.4807. Currently 300+ pips
  
• Gbp/Usd: Long @ 1.9709, stop 1.9649. Currently 150+ pips
  
• Usd/Chf: Short @ 1.0836, stop 1.0896. Currently 300+ pips
  

Also, it looks like a number of OneNightStand trades might get triggered on Friday.

When it rains, it pours.

See you tomorrow. Have a good night.

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.

PPS: Please do not use AOL or Yahoo addresses. Nothing personal, but 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! Huge storage too.