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Daily Archives: May 3rd, 2013

We were busy for the month of April, executing 7 spot trades and 1 option trade.  Fortunately, we won on all 7 spot trades; 5 short trades and 2 long trades.

Absolute return for the month of April was 36.5%.

Our portfolio return year to date is 81.9%.

April was a good month!

We knew that the ECB rate decision was going to create volatility in the fx market.  We were not sure whether we could catch the movement when the announcement came out.

Instead, we did a proxy by focusing on the AUDUSD, knowing that it will also react positively if the Euro was going to strengthen and it did.

We long the AUDUSD at 1.0225 and square the position at 1.0270, the high was 1.0283.  We made a trading profit of 45 bps or 0.40%.

Yesterday, was a monumental day as it was the ECB rate decision day.  Lots of media coverage of the event the whole week coming up to Thursday.

It was widely expected that Draghi will cut interest rates by 0.25% and he did, down to 0.50% from 0.75%.

The Euro was extremely volatile and we could not catch the upside, however, instead we positioned ourselves for a reversal and it happened when Draghi hinted that he may do a negative deposit rate if necessary.

We sold the EURUSD at 1.3200 and squared the position at 1.3100, it hit a low of 1.3040, then again, we can’t always catch the top nor catch the bottom.

We made a trading profit of 100bps or 0.75%.