Digital Diatribes

A presentation of data on climate and other stuff

Forex Account at 2/28/2010 Close

Posted by The Diatribe Guy on March 1, 2010

OUTSTANDING ORDERS as of End of Day 02/16/2010 settled by End of Day 02/28/2010
o/s xauusd 0.02 buy 1110.00 closed on 02/19 +30.15
o/s xauusd 0.02 buy 1112.00 closed on 02/22 +8.95

New Orders since End of Day 02/16, settled by end of day 02/28 – ALL are GOLD BUY orders (XAUUSD)
Date of entry / Lot size / Buy Price / Date of Settlement / Net Profit
02/18 0.02 1100 02/18 +40.36
02/19 0.02 1100 02/19 +31.60
02/25 0.02 1090 02/25 +34.40
02/23 0.02 1100 02/26 +33.29

New Orders Since end of day 02/16, still outstanding as of end of day 02/28 – ALL BUY GOLD positions
Date of purchase / Lot size / buy-in price
02/22 0.01 1120.00
02/23 0.02 1110.00

Current Equity Balance: $3,055.35

Assessment of Risk:
Strategy is still to trade Gold LONG only, but I do have some short positions eyed if price increases to at least 1180. (I have a few outstanding short positions on gold at lower prices and long positions on the dollar against the Yen but these are holdovers from a previous strategy and I’m just riding them out for now). I am still trading without a stop loss. The risk is that prices continue to fall without a rebound, meaning that I am unable to cash in on profits while losing equity.

Currently, I am trading position sizes of 0.01 lots at $10 increments from $1120 to $1230, and then I have position sizes of 0.02 lots at $10 increments from $1120 and below, except at $1020, $1000, and $990. These are adjustments I made to reach my safety net goal of being able to absorb a price fall to $975. (This is down from $985 as of 2/16. So I succeeded in acheiving a safer level since then.) If gold falls below $975, right now I will need to fund the account. I want to continue to lower that target value. By the end of March, my target is to be able to absorb a drop to $965. Since this target isn’t really unreasonable in light of prices within the last year, I am trading fairly aggressively, and that comes with risk. The plan is to slowly reduce that risk either through smaller lots, higher gaps between trades, or more capital. THis comes with a slower percentage growth as it relates to capital, but that’s all part of the risk/reward trade-off. Preferably, I can accomplish the “more capital” part by profit taking rather than injection of funds. Short positions will also hedge against this – at the moment, I am not taking any potential shorts into consideration.

I am hoping to see a surge in the price of gold past $1230, because at that point I am going to reduce risk by not taking any positions until a $50 drop in the price, which is where a lot of my risk is without a lot of potential reward. If I simply kept the schedule as it is right now and eliminated the positions from $1190 – $1230, then I could absorb a price fall to $942. That’s a pretty substantial difference, and really doesn’t reduce much of my overall profit potential. You live and learn on these things.


One Response to “Forex Account at 2/28/2010 Close”

  1. tranduc said

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