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Tag Archives: performance review

2015 has turned out to be a great start!

After a challenging 2014, the first quarter of 2015 presented wonderful opportunities to us, which of course, we capitalized on the opportunity.

For the first quarter ending March, we did a total of 13 trades, total volume of 155Billion and locked in an absolute return of 95.3% against our principal investment.

A phenomenal start to the year.  As you can see, we averaged about 4 trades a month.  In hindsight, we missed some opportunities, however, the important point is that we made on every trade with no drawdown at all.

I believe the appropriate style of trading is more one of strategic and opportunistic trading, and not trading for the sake of trading.

Going forward, this year will be another year where central bankers will be focused on; what they say, what they feel and what they are not saying.

Stay very close to the media, it will continue to tell us about the sentiment and volatility in the marketplace.

Now that we have already met our target for 2015, I do not intend to take on any unnecessary risky trades and will just continue doing what I have been doing………slow………steady………and confidently.

Here’s wishing us all continuing success in fx trading for the rest of the year.

For the month of September, I did a total of 9 trades; 5 spot trades and 4 options.  I lost on one option and won on the rest.

What is important to bear in mind is that options is a great way to minimize your loss upfront and psychologically accept the cost or loss prior to executing the trade.  In other words, I made the decision on my risk appetite and was prepared to gamble away US$8,800 in premium cost of the GBPUSD Put Option.

Nett of the loss of the option trade which was a negative 8.8%, our nett absolute performance for the month of September was 51%.  Adding this on to our total absolute performance currently standing at 199.1%, bring the total absolute performance to 250.1% year to date.

Some of you may or may not yet have asked me the question as to how and why I measure my performance on an absolute basis rather than an accumulative basis?  An accumulative return distorts the overall return when one is making good monthly returns, the base ends up being larger and larger and then, the return for the on going month becomes smaller relative to the larger base, even though in absolute terms, the monthly return achieved could be considerable.

Absolute returns are more realistic, I set aside my principal monies or collateral in account X and then, I deposit my profits or debit my losses from a separate account Y.  My absolute returns is simply profits or losses for the month divided by X expressed as a percentage and then adding it on or subtracting from Y.  Y would be the total aggregate net profits divided by X expressed as a percentage.  In other words, if US$100,000 is my X and I have a value of US$200,000 in Y, then my absolute return is 200%.

I trust the explanation clarifies any queries you may have.

 

The month of June was a busy month, I did 9 trades and two options.

I lost on two trades and nearly loss big time on the EURUSD call option but managed to recover and actually made a profit.  You will recall that the two month EURUSD call option had a breakeven of 1.3175 and expiration on 28 June 2013.  I squared at 1.3268 and it hit a high of 1.3365 just before expiration.

The yum yum trade was the 2 week USDJPY call option.  I just felt the JPY strengthened too much too quickly and a significant correction was going to happen.  So I bought a call option at 94.15 with a breakeven at 95.86 and I bought back the option at 97.50 for a nice profit of 16.8%.

So for the month of June, I am up 33.3% in absolute returns.  So far, YTD trading profits in absolute is 136.7% with this month’s trading profits, it brings the absolute returns year to date to 170%.