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Tag Archives: foreign exchange

Trade: on 23 May 2013, LONG EURUSD at 1.2845 and squared at 1.2900

Last Thursday, 23 May 2013, I went LONG EURUSD at 1.2845 immediately after the announcements of the various PMIs for Germany, France and Italy, they were all generally slight improvements.

Initially, market moved slightly, I felt it was good for a 4obps pop upwards, then, it started moving up to 1.2900, I put an order to square the position at 1.2900 and it was taken out as it went higher to 1.2908.   I locked in a trading profit of 55bps or 0.42%.

It went higher into NY trading session but I was at the time out for dinner.

Trade: LONG AUDUSD at 0.9637 and squared at 0.9670

I saw the fast and slow stochastic signalling a buy, so I went long at 0.9637 and squared the trade 5 mins ago at 0.9670 for a trading profit of 33bps or 0.34%.

Trade: Short AUDUSD at 0.9645 and squared at 0.9635

I was so bored, decided to do a quick scalp; short the AUDUSD at 0.9645 and squared the position at 0.9635 for a 10bps trading profit.

Trade: Thank you AUD; Long AUDUSD at 0.9765 and squared at 0.9810

Good morning to all, just when I was lamenting about a lost opportunity in the AUD yesterday, I also knew that in the forex markets, another opportunity would present itself.

It did.

This morning.

I Long the AUDUSD at 0.9765 during Asian time after the release of the RBA minutes to ensure no curve balls.  In fact, when the RBA minutes came out AUD tanked to 0.9750, but I waited till the rebound happened and some stability was seen in the charts.  Then, I Long the AUDUSD at 0.8765 at about 9.35am and just squared the position at 0.9810 at 11:30am.

I made a trading profit of 45bps or 0.45%.

Thank you AUD!

CPI data for the GBP this afternoon at 4:30pm, I believe it will be a market mover………….let’s see.

Have a nice lunch you all.

Trade: Bought Put Option on the AUDUSD at 0.9950, BE at 0.9905 expiring 17 May 201

We sold the put option at about 4:15pm Asian time on Friday at 0.9730 for a awesome 175bps profit or 1.80%.

Thank you Julia Gillard and Glen Stevens!

Trade: Short AUDUSD at 0.9968 and squared at 0.9935 on 14 May 2013

On 14 May 2013, when the world was waiting for Australia to announce their annual budget, we felt that they would probably announce a higher deficit than what market expects, although, there was alot of buzz during Asian trading time that the number was going to be big.

They market expected a deficit of A$14Bn and the final number was A$18Bn deficit.

AUD plunged.

We did a quick  short of the AUDUSD at 0.9968 and squared at 0.9935 for a trading profit of 33 bps or 0.33%.  Fortunately, we did as the AUDUSD rebounded back to 0.9990, after that it was all the way down.

Instead of staying glued to the screen, I decided to buy a  put option at 0.9950 with a premium of 45bps, bring the BE to 0.9905, expiring on Friday, 17 May 2013.

Trade: Bet on the RBA cutting rates; Short AUDUSD at 1.0240 and squared at 1.0188

Rumours that George Soros short the AUD through the option market last Monday, meant that he could have short the AUD at about 1.04, which means he is looking at a huge trading profit.

We decided to make a small bet today as we were not comfortable given that the AUD has weaken substantially from last week.

We made a quick bet and short the AUD at 1.0240 and squared the position at 1.0188 for a trading profit of 52bps or 0.51%.

Performance Review April 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!

Trade: Long AUDUSD at 1.0225 and squared at 1.0270

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%.

Trade: Short the EURUSD at 1.3200 and squared at 1.3100

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%.