This has been my best month this
year, up a little over 11%, which puts me nicely on target
to reach the goals I set for myself at the being of the year
(see January 2004 Report Jan 2004 Report).
At the end of May I amended my
Support and Resistance trading to incorporate stop and
reverse orders. The idea behind this was to try to
get two bites of the cherry, without increasing the maximum
daily risk. The
change certainly worked to my advantage this month, and you
can see evidence of equity acceleration in a number of my
charts.
Also in two out of three of my High
volatility accounts (ones in which I have not included the
P/L in the above consolidated chart), I now have returns of
around 150% – 200%. While
these accounts are subject to savage drawdowns (and that is
the reason I’ve excluded the P/L), if they continue at the
rate they are going, my overall return for the year will be
excellent.
I’ll just keep trading, and not
think about it too much!
Individual components
The following charts again
show individual equity curves in percentage terms of the
various trading components traded throughout the period.
The charts are from the beginning of reporting, or
inception, with this month performance commencing from the
vertical line.
Capital Allocation for period
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Trade
Components
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AUD/NZD:
Some excellent returns here as mentioned in the
introduction. The
first account would actually have been dramatically
better had I not missed two trades by just one pip,
during the last two days!
But that is trading.
Small things can make large differences, and
the spread is always working against us.
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Spread/BO
AUD – NZD: I
started trading this method last month, but in my rush
to get the report out (I was busy fencing the property
we live on), the chart got omitted.
Basically I’m Spread trading AUD/NZD, while
playing breakout’s on the underlying currencies.
The idea
kicked on well this month!
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A
mentioned in previous reports, at the moment Spread
trading doesn’t seem to be working very well, but I
continue to use the account for analysis.
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Breakout’s are working
though! The ‘Large Basket’ currently
actively trades 9 out of 16 pairs I look at. The
trading makeup is reviewed weekly
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The ‘Small Basket’ trades
my best 3 breakout pairs, again reviewed weekly.
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JPY BO’s:
Slightly disappointing
for the month. We’ll have to see how this one
goes.
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GBP/CHF: I stopped
trading this for a few days at the end of last month,
but came back to it at the beginning of June, and
hopefully I’ve turned the corner.
As I have observed before,
this pair backtests very well. I’m hoping that
my new ‘double dip’ method will pay off.
Time will tell.
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The following two charts are
variations on a theme, but using a more aggressive
money management strategy that doesn’t suffer from
problems of asymmetric leverage. It’ll be
interesting how this goes.
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