TRADING STARTS AGAIN

                                               We Begin

One of the things I’m going to do here on the web page is start a hypothetical NAV [Net Asset Value] for PAMM participants. I think it is important and valuable for 2 big reasons; 1) it allows a day-to-day look at what the fund is doing on a percentage basis, thus cutting threw the clutter of numbers over time when people deposit additional funds or withdraw funds, and 2) it’s easy to follow.

Each day [and week] I will provide a recap of what we did, what the P/L was, and the new NAV for the day. As a PAMM participant, all you have to know is what the NAV was on the day your money joined the PAMM. NAV was started at the beginning of trading today at 1.00 [as in $1.00]. If you had $1,000 in the PAMM at the start of trading today, your number of hypothetical shares would be 1,000. If the NAV is 1.10 when you deposit $1,000, your number of shares would be 909.091 [1,000 / 1.10].

Now, obviously there aren’t any shares, as this is only an accounting scheme. But it makes things extremely easy for comparison purposes because you now don’t have to worry about other people’s money taking the percentages up or down based on deposits and withdraws. Everybody comes in or out at the NAV times the number of hypothetical shares.

Over time, all it takes is a glance at the NAV to know how you are doing. For example, you came in to the PAMM at 1.05, and a little later it is at 1.25, you know you are up about 16%.

Now, I want to be clear on this point again: this is only for accounting purposes to make things easy for you. It is not meant to be an exact, to the penny, calculation like this is some mutual fund.

Remember, you always have access to your balance at the brokerage house, so you can see the exact amount of balance.

We started the day with a huge gap open higher in Asia, due to the perceived success of the Spanish bailout. EURUSD and EURJPY both opened over 100 pips higher. From there, it was all downhill.

Our main trade of the day [I had 1 scratch trade, 1 trade made a couple of pips, and 1 trade lost a couple of pips] was selling EURJPY and taking about 25 pips out of it before it hit the first algorithm exhaustion point on the down side. Net result was a 2.41% gain on the day.

Daily Recap

Start of Day NAV:  1.00

End of Day NAV:   1.241

Gross % P/L:          2.41%

Have a good day everyone.

-vegas