Review Daily Market’s operations for this first quarter of 2010

In this document, we will review Daily Market’s operations for this first quarter of 2010, which has been the most difficult quarter for us in several years in which we achieved profits far below our track record.  Nevertheless, we did achieve profits and we understand that is why our subscribers continue to use our service.

We would like to take the opportunity to point out what differentiates our service from other Forex and Sp services.

At DailyMarketAdvice, we believe the only way to continually beat the market is to adapt your strategy to market conditions and to use techniques that can be applied daily.  If you discover a market pattern that repeat itself at least 70% of the time and where the amount gained when the pattern holds is greater than the amount lost when it doesn’t, don’t think twice; you have found the ideal way to beat the market.   Finding and exploiting market patterns has been precisely our philosophy for years.  We don’t try to break the bank in one or two sessions.  Instead, we beat the market little by little but daily and, by the end of a year, we have achieved profits you won’t believe.  What is challenging about our philosophy is that, when the timing, tendencies or volumes change in the markets, past techniques many times no longer work.   That is why we at DailyMarketAdvice are constantly refining our techniques.

Our signals ALWAYS HAVE A STOP that never moves.  Therefore, when you execute one of our trades you know the maximum risk you are assuming.

A while ago, I had a subscription in another day-trading service that offered a profitability of practically 100% according to their Forex statistics.  I was quite surprised by this and decided to follow them for two months. And it was true; they had 100% profitability on closed operations.  The problem is that each day they left open many operations (all without any stop or target) and they would close them when they became positive.  The problem is that the negative ones were accumulating losses without being closed.  After following them for two months, I discovered they had accumulated 12 open operations; one with -800 pips and another with -650 pips.  Strikingly, all the gains they had accumulated through closed operations during that period didn’t add up to half the pips of losses they had accumulated with these two open operations. 

FOREX

We will begin by review our Forex operations for this first quarter. For the quarter, we earned a profit of 540 pips.  We made 586 pips using the European Morning Technique and lost 46 pips using the USA Morning Technique which has been our great disappointment over the quarter and especially so during the last week of each month, as we informed you in last weekly review.  We aren’t sure why the market has changed at the USA Morning trading time but we do know that we are only seeing movement for the majority of pairs during the European Morning trading time and this fact is made evident in our quarterly results.

If we review the previous four quarters, we see that this last one has been our worst performing quarter and that the USA morning technique is the leading factor for this performance as we registered a loss for that technique.  In addition, the European morning technique only produced ¼ of our average profit for that technique per quarter.  Even though our techniques have underperformed their average profit levels, we are content with the results as we have registered a 540 pip profit during a year which has been quite difficult for all traders thus far.  

Conclusion:  We remain profitable and our accounts have grown since the beginning of the year even under the worst market conditions imaginable.  Imagine what will happen as market conditions improve as we normally have registered months with gains of 500-1000 pips.  We closed the month of March with again of 373 pips with 38 profitable trades and 25 negative trades.

MINISP FUTURES

The follow table contains our results for Sp trading this quarter. We executed 52 trades: 38 for a profit and 14 for a loss, which gives us a 73.07% success rate for our Sp trades. This quarter we earned a profit of 61 points which is the equivalent of $3,050 per contract, without taking into consideration broker’s commissions. 

If we review the data from the previous quarters, which you can see below, what is most evident is how few trades (52) we executed during this last quarter when compared to our activity in prior quarters (96 in Q4, 2009; 123 in Q3, 2009).  With less than half of the number of trades we normally execute, clearly the number of points we can gain is reduced considerable.  The other problem has been the Morning technique.  It is definitely not normal for this technique to only gain 5.5 point in a quarter as it has gained 100 points in many previous quarters.  Another abnormality of this past quarter is the small number of trades we executed for the Open technique: 11 trades this past quarter when in previous quarter we executed more than 30 trades.  Only the Evening technique was capable of giving us pretty good results in such a difficult market.

 

As we have commented repeatedly in each weekly review, it is currently not easy at all to operate in the Sp.   As you can see for yourself in the following chart of the last 8 sessions, there is a lack of direction as well as a lack of volatility in this market which makes it almost impossible to reach a target of 4 points which, obviously reduces dramatically our chances to make profits.

Conclusion: It has been a very difficult quarter due to a lack of market direction and volatility for the Sp, especially during the months of February and March.  Even in these circumstances, we were able to make a 61 point profit, the equivalent of $3,050 per contract.

We are very excited about this next quarter and we have various new strategies both for Forex and Sp, all currently in their last phase of analysis, we are planning to introduce one at a time during the second quarter. 

Thank you for staying with us one quarter more