Weekly review 8/1/2010

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

As we commented last week, over the last several months our Sp techniques have not given us the returns we are used to, which is why we have been working hard to improve our Sp numbers.  Therefore, as of last Monday, we began to place signals for the Sp from the Trading Room section in the private part of our web site.  This new system has gone really well for us thus far.  We executed 11 trades for a gain of 19 points, or $950 per contract, which are very good numbers for one week.

 You may remember that in the previous week, during our trials, we registered a gain of 29.75 points, or $1487.50, with 12 trades executed; 10 positive and 2 negative.

We have executed these new techniques for the Sp for a very short span of time and we have encountered problems in placing signals in the chat given how fast the Sp was during the last several sessions.  We also had problems with our trading schedule.  We’ve found that, lately, the best trading time is not at the US market opening at 9:30am EST but rather at 11:00am EST and at 2:00pm EST as we saw this past Friday.

Take a look that the following chart from Friday at 11:14am EST.  The first trade would be to enter short for a 7 point gain, then a long trade for 10 points and then a short again for another 2 points.  This represents 19 points for the Friday open and evening sessions.  Thursday also gave us a good trade but the rest of the week there wasn’t much we could do during the open and evening sessions.

 We will continue to work towards finding the best times to be in the market, as it is not our goal to be in the chat for 14 hours each day.  We would like to be in the chat for a maximum of 6 hours.  As you can see, with 12 trades during the last two weeks for +19 and +29.75 points, we have practically doubled the required guaranties for brokers for operating the Sp.

Remember the stop for each signal for the Sp is 2 points.

Now let’s review the Last Wave.  This last week, we only executed one trade for a 4% gain for Gmr after having closed the short that was open since the previous Thursday.


 To summarize, we had a really good week for futures and stocks with a 19 points profit for the Sp, $950 per contract, with 10 positive trades and 1 negative one, as well as a +4% profit for stocks with one trade.

FOREX

Now we will review our week in Forex.

Trades this past week:

We traded sparingly this week with no trades for the USA Morning Eur/Jpy and only one trade for the European Morning Gbp/Usd, which was positive. Many of the pairs we trade were in the same entry price as the day before at the time we sent our signals only to later move in small ranges of no more than 50 pips, which make it barely possible for us to reach our targets.  The chart below is of the Gbp/Usd for July 28, 29 and 30, when, after having passed the first 2 days of the week without movement, it stayed at the same levels for 3 sessions.  It only broke upward on Friday in the last hour of the session.

 The movements were sudden and without any trend.  This was so much the fact that on Friday morning we were forced to close prematurely (something we don’t like doing but we had no choice, in this case) a long for the Eur/Jpy with -10 pips, upon seeing that the market turned strongly down and the pair again become stagnant as it had been over the past several days.  In the end, the trade would have hit the stop so it turned out to be a good decision. 

The big trade of the week was that of the European Morning Technique on July 28th and it was tinged with some bad luck, unfortunately.  We opened short for the Eur/Jpy at 114.15 and, as you know, for this pair we activate a stop profit if we go up 40 pips in the trade. The stop profit was activated at 114.05 as we were up 55 pips for the pair but, the pair rebounded and hit maximums at  114.06/8 and our stop profit was hit.  After our stop profit was triggered by a mere 3 pips after having been up 55 pip, the price then fell and hit what was our target where we would have made a gain of 90 pips.

 As you can see, it is difficult.  We fought all week only to close -38 Pips, missing an opportunity to gain 90 Pips which would have left us with a gain for the week.

 

We would like to remind you that our new trading room is open at http://www.dailymarketadvice.blogspot.com/

At this time, the trading room is only for futures trading but we invite you to check it out as we are working on launching the equivalent for FX, with the best technologies adapting our techniques to this medium. If you do not have experience trading futures or you have and questions about that market, please don’t hesitate to ask us.  We have been using the chat room for only 2 weeks now and we have already registered a $2,500 profit.  We always trade with small stops of 2 points ($100) and we believe there is a lot of money to be made using the chat, which will be adapted shortly for FX.

FX 2010 Summary

EUR		US
GBP/USD	EUR/JPY	GBP/USD	EUR/JPY	CAD/JPY	OTHERS	DISCRETIONAL
-101	566	-230	280	75	60	50

We hope you have a good remainder of the weekend.