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Daily Archives: December 14th, 2017

2017 unaudited performance

Well, 2017 has proven to be both a tough and opportunisitc year.

It was not easy to spot the trends and certainly event driven trading also proved to be challenging, however, we managed to close our trading books with an absolute performance of 147.49%

Now, I am going to focus on Christmas.

Here’s wishing one and all a very Merry Christmas and good trading in 2018.

14 Dec @ FOMC!

I wasn’t sure whether the FOMC will turn out like the BOE last month, but there was sufficient buzz in the market to suggest that it could be a volatile event.

I decided not to stay up for the action but instead place some one day vanilla options with the following details:-

EURUSD Call Option; Spot 1.1762, Premium; 40bps, Breakeven; 1.1802

USDJPY Put Option; Spot 113.05, Premium; 38bps, Breakeven; 112.67

AUDUSD Call Option; Spot 0.7610, Premium; 21bps, Breakeven; 0.7631

Decided to square all the three options as follows: –

EURUSD at 1.1830 for a trading profit of 28bps

USDJPY at 112.61 for a trading profit of 0.6 yen

AUDUSD at 0.7634 for a trading profit of 3bps

This whole exercise turned a small profit of 36bps……………aarrgghh…………the whole event turned out to be a lacklustre event.

Ok, I am closing my books for 2017.

Will put up the final performance figures for 2017 shortly.

 

13 Dec @ UK Claimant Count

Another sought after UK economic data.

I decided to place my straddle with the following details: –

GBPUSD; Stop if Offered at 1.3323, Spot at 1.3344, Stop if Bid at 1.3365

Claimant count came out worse at negative 5.9K versus forecast of 3.3K, and previous month was revised upwards to negative 6.5K from 1.1K. Bad situation in the employment scene in the UK.

Unfortunately, the GBPUSD spiked upwards and triggered my stop if bid and before I could do anything, it fell and hit my stoploss at 1.3344, so I ended up with a small loss of 21bps……………such is life!

12 Dec @ UK CPI

Nowadays inflation data of all first world countries is an important economic data to watch out for. Today, is UK CPI.

I decided to place my straddle trade with the following details: –

GBPUSD; Stop if Offered at 1.3335, Spot att 1.3341, Stop if Bid at 1.3365

As it turned out CPI came slightly higher at 3.1% against forecast of 3.0%. Core CPI was the same at 2.7%.

The GBPUSD moved up and triggered by stop if bid, however, after less than 10 minutes it simply had no legs.

I squared the trade at 1.3375 for a small trading profit of 10bps.