Greetings everyone,
As we do every week, we are going to review our trades over the last week and we will start our review this week with futures and stocks.
FUTURES & STOCKS
DAX
First of all, we would like you to know that, starting Monday, we are going to introduce a new trade of the German Dax futures via our trading room. This trade is perfect for subscribers in Europe and Asia as the trade will start at 2am EST (8am GMT +1), just when the Dax opens. The technique is based on gaps in the opening of the Dax.
Below are the statistics of the technique from March, 2009, until July, 2010, when the technique would have registered a gain of close to 3500 points which, given that every Dax point is worth 25 euros, represents a gain of 87,500€ ($118,100) in one year and three months.
August is not the best month to execute this technique as there usually is not an opening gap for the majority of sessions. Never the less, we want to start using it to familiarize everyone with it so that we will be able to execute it without complications in September. For the last three weeks, you can see that the technique has only generated 7 trades for a gain of 95 points, or 2,375€ ($3,200). Of 15 sessions, we did not have a trade for 8 of them. Of these 8 sessions without a trade, 4 occurred this week from Tuesday through Friday, motivated by the fact that the market has been completely stagnant because of the US Unemployment Data announced this past Friday. This type of comportment is fairly typical and more so in a month such as August when volume tends to drop abruptly.
This technique provides us with a trade if the Dax future opens with a gap at least 10 points larger than the previous day’s close. Normally, we set a target of the gap’s close plus 10 points with a stop equivalent to the gap size. If we hit the stop, we open a contrary position with a target of the gap plus 10 points.
Let’s review the following example:
Let’s imagine the Dax closed yesterday at 6300 points and today is opening at 6320.
The technique would call for us to trade short at 6320 points with a stop at 6340 points (20 points – the size of the gap) and a repurchasing target at 6290 points (20 + 10 points).
If we hit the target of 6290, we would gain 30 points and the trade would end for that day.
On the other hand, if we hit the stop at 6340, we will open a long position with a target of 6370 and a stop at 6320 points.
In case you aren’t sure you’ve correctly understood this example, every day we will clearly publish the signals from our trading room.
SP
As we commented last week, since two weeks ago this coming Monday, we have been placing Sp trades from our Trading Room in the private part of our web. As you may remember, last week went very well for this technique. We executed 11 operations for a 19 point gain, or $950 per contract.
Well, this past week went even better! We executed 19 operations, 18 positive and only 1 negative one, for a 27.5 point gain, or $1,375 per contract, this week.
Therefore, in the past two weeks since we started using the Trading Room, we have made 30 trades, 28 positive and 2 negative, for a 38.5 point gain or $1,925 per contract. Keep in mind that this is a per contract gain as you know there are brokers that ask for up to $500 per contract as a guarantee.
In addition to being the first week of August with low volume and the US
LAST WAVE
Now let’s review the Last Wave for this past week. We only made one trade with Solf on Monday for a 1.98% gain. As you know, if was a shame we closed the trade because on Tuesday Solf opened with an 18% gap, which would have meant a 20% gain for us. But, with August, volume is reduced and it is very difficult to make good stock trades with the Last Wave technique as there tends not to be any strength at the end of sessions.
Therefore, we had a really good week for futures and stocks: a 27.5 point gain for the Sp ($1,375 per contract) and a +1.98% gain for stocks with one trade.
FOREX
Now let’s review our week in Forex.
Trades this past week:
It was a week with few trades but one that carried important news that we will comment on in this review. We traded sparingly because in the majority of sessions the pairs were exactly at the time point as they were the previous day at the same time. This didn’t allow us many good trading opportunities as the price was always at the same price.
Here is an example of this stagnant market during the US Morning Technique trade. EUR/JPY was at 113,5x for the 3rd and the 4th of August at the time we send out our signals.
Our techniques do not function well when prices are stagnant which is why we must wait for new levels or trends that will give us better opportunities. We would like to point out the trade on August 3rd, one day before the chart we included above, which hit the stop (-40) by only 10 pips. This was very bad luck if you keep in mind that the target for this short was 90 Pips. And this would mean practically closing at weekly minimums.
Now, we are going to try to only risk this type of trade with a high ratio of risk/benefit, where with only one target we can cover the losses of 2 or 3 stops. Therefore, we aren’t going to force things. We are only going to wait for better opportunities.
For the last several weeks, we have published Sp futures signals through this new medium with very good results. Therefore, starting this Monday we will begin to send FX signals through this channel in addition. They will be very fast trades with stops of 20 pips and targets of between 10 and 20 pips. We’ve wanted to show you another trading style for some time but, because of the complexity of these operations we could never sent them by email.
Our activity will be concentrated during the opening of the European and US markets. The Trading Room emits an audio signal when we send any message; therefore you won’t have to be watching your monitor. We place some trades through the trading room this past Friday. Some of these trades of the Eur/Usd spread were -10 +10 or +10 +30. The trade which was open the longest was open for 30 minutes. The average trade is shorter than 15 minutes. We invite you to join us in the trading room on Monday to read and practice as a demonstration. The trades are fast and the prices between brokers vary so it will be challenging. We will be improving our technology in the short-term to create new and better opportunities.
FX 2010 Summary
| EUR | | US | | | | |
| GBP/USD | EUR/JPY | GBP/USD | EUR/JPY | CAD/JPY | OTHERS | DISCRETIONAL |
| -71 | 576 | -230 | 280 | 75 | 60 | 50 |
We hope you have a good remainder of the weekend.
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