October 2007 Comments and Managed Account Report.
For three weeks of the month I was unwell, with quite a lot of time spent at hospital.
During this period no client accounts were being traded.
The month finished off with a net loss of 10.3%.
There are two reasons I can cite for the losses this month.
In the second week of the month the mid term trends began to change to short and then changed back again to longs. As a trend trader I was trading short when it flipped long again and hence suffered the losses you see on accounts. The drawdowns were in accordance with the figures previously agreed and are acceptable.
Then there was almost two weeks on non trading whilst I was ill and tradingbegan properly again last week. Unfortunately the two weeks of non-trades meant I was unable to pull back the months figures in time for month end. I will not increase risk just for the monthly pay packet.
Since trading recommenced accounts have been steadily building and had I used the same leverage we would be back to break even for the month. However as the market was clearly in a state of confusion I took the decision to reduce leverage to safeguard capital.
The Coming Month.
At the moment many currency pairs are ready for a good retrace. Of course this doesn’t mean they will retrace but it does mean that we are at a higher risk than when our ideal conditions are met.For the first two weeks of the month I expect to be short term trading again or even not trading whilst looking for the longer trades to appear
Some trades will develop early but I think the main bulk of the months trades may take a while to form.
If clients have any questions I am available as always via skype, phone or email.
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