EM currencies

USDNOK Shorts Win 5,300 Pips

USDNOK Shorts Win 5,300 Pips

This entry is a follow up to our original Short USDNOK Pays Off Well piece published 9 April 2016. Since then, we have closed out all our trades on USDNOK and have booked a total of 5,370 pips of realized profits. This translates into roughly +6.28% of unlevered returns. This piece is therefore to update readers and followers as well as to provide the last concluding bits of our thoughts.

We've been immensely busy for the past few weeks and had no time to post new trading related content on these pages. Safe to say that the markets have been even busier with a bombardment of macro & central bank events jostling prices around. In today's short entry we'll give you a final breakdown and some concluding thoughts on our short USDNOK trade complex.

Short USDZAR Profits Big

Short USDZAR Profits Big

4,700 pips won on a single trade. Striking when the iron is hot, is what exactly we have been doing. For the last couple of weeks, we've bagged a couple of decent trades; pretty damn good trades actually, if we spared you the modesty. We won some 1,300 pips on USDTRY, are riding on about 3,300 pips on USDNOK, and today booked a huge winner on USDZAR - a currency pair most retail traders probably never even heard of until now.

We don't have much to comment about other than to say that the trade was highly motivated by technical factors, and that our entry was a tad premature (in hindsight), but we knew where our risk-reward profile stood and believe we still had a risk advantage even though our entry point was off.

We were satisfied with the trade management as we were able to (correctly) ride out some drawdown before the trade earnestly went in our favor. Our objective was well placed, and we would call this trade an overall success with certain aspects that can certainly been improved on.

Short USDNOK Pays Off Well

Short USDNOK Pays Off Well

Update: Our base short position has been closed out at 8.1650 via a buy limit take profit order, for a profit of 3,010 pips, or +3.55%.

It's been a rough week for the markets but that doesn't stop us from sitting on more than 3,300 pips of floating profits on our 2 USDNOK short positions. Recall that just last week, we closed out our USDTRY shorts for a handsome profit (fully documented in our trade journal). What we didn't publicly reveal was that we were already short USDNOK well before we published that article.

There's a lot that could be said about our current trading books. There's a lot going on and it reflects the busyness in our heads. No surprise here as we've been getting some crazy moves across the various markets we monitor and trade, especially in currencies. We won't go into the details in this piece but will briefly explain why we took the trades going long the NOK (Norwegian krone) against the USD. 

Turkish Lira Longs Running With 1,100 Pips

Turkish Lira Longs Running With 1,100 Pips

Update: Our short positions on USDTRY have sinced been closed out via their respective take profit buy limit orders, netting us a total of +1,340 pips. Actual trade tickets posted below.

There are many ways to skin a cat that is the global weakness in the U.S. dollar. Like we have previously mentioned on many occasions, we are bearish the dollar on many aspects and have been looking at different ways in which to gain a healthy short exposure on the greenback.

Congruent with our view that emerging market currencies would outperform most in the FX complex, not withstanding heavily shorted currencies such as the Canadian dollar and Aussie dollar, we have chosen to take the path of being short USD against a basket of EMFX.

Two weeks ago, we initiated our first of the 2 shorts on the dollar against the Turkish lira, at what we believe (and has so far been validated by price action itself) was a good price both fundamentally and technically.

How We Traded The Correction, And Profited When Most Lost

How We Traded The Correction, And Profited When Most Lost

It's been one of the best weeks for us this year. Don't be mistaken, what the markets experienced over the last 5 days will go down in the history books as one hell of a ride. But as traders, we live for this type of events.

In the last 2 weeks, most retail traders have lost money, or even completely blown their leveraged trading accounts. If you're reading this and are one of them, this piece is for you. In such markets, you need to know what you're doing. Most retail traders were utterly clueless and were gambling. It's hence no surprise that so many lost.

It was a good week. There's no denying that. We learned more from the past 2 weeks than the last 6 months collectively.

But one week doesn't mean anything in the grand scheme of things. Performance must always be evaluated over time. It just so happened that August was a month where most were concerned about the return of capital, and not the return on capital.