Hit When Necessary
More than a few people hit the shiny red button today. In a
Centrally Planned trading environment their goal is to get you coming and
going, reacting to every bit of news they choose to release.
I stayed away from gold all day today, instead focusing on
EURUSD and AUDUSD where we gained about 0.2%. Like the last few days, most of
the action came in Asia, where the “Lemmings in Asia”
have discovered the “sell at a loss” mode. News flows out of Europe
continues to hurt the currencies against the dollar.
Below is a table I want everyone to see. In it are selective
hedge fund performance results for April 2012 and for YTD [year to date]. Most
of the names on this list are famous hedge funds whose managers are considered
“best in breed” or “cream of the crop”. I wanted to bring this up to give
everybody a sense of perspective as we move to our new home and begin trading
with another house.
So far in 2012 I’m up about 1.5%. A lot of things have
happened in the last few months that have changed the trading environment and I
have dealt with them accordingly. What needs to be remembered is that my risk
tolerances are far lower than most, if not all, of the money managers on the
list.
There have been challenging 2 – 4 month periods in the past;
Spring of 1987 comes to mind, Summer of 2005 was very slow, and there are a few
others over my 30+ year trading career. My goal is simple; approach each
trading day with rigorous risk management and make at least 0.5% + on monies
under management [hopefully a lot more].
The algorithm has been revised and updated to the new
paradigm I have talked about in my other posts. Our new PAMM home has a faster
MT4 trading platform with almost no slippage and better prices means more
profits. In addition to that, I am focusing more on the currency pairs and less
on gold as the latter has become a trading mess. This means more stable and
consistent returns.
With interest rates near zero, I fully comprehend the
enormity of my responsibility to produce above average yields for my clients
without taking above average risk. Any chimp can shove chips into the poker
pot; managing risk properly is a whole other kettle of fish.
If you are in the PAMM and haven’t requested my help file
for the transition to the new brokerage house, email me with your PAMM investor
account number and I will send it to you. If you are interested in becoming a
new client of our new PAMM, email me for details.
Have a good day everyone.
-vegas
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