August came to a close and we had an overall decent month, but the summer doldrums did have a minor impact which resulted in the slight miss on our 1,200 pips target. The Australian Dollar sell-off seems to have stabilized and we expect to see another turnaround going into September.
We have continued to execute our strategy successfully and plan to repeat the same process next month which hinges on the accuracy of our trading recommendations. Our guidance for next month remains 1,200 pips as August was the eight month this year where our profits came in above 1,200 pips while our 2013 average is just above 1,400 pips.
In addition our total profits for the year which currently stand at 11,269 pips are greater than our current floating trading losses. We plan to widen the gap between realized profits and floating trading losses in September as we continue to reduce long-term losing positions.
Overview of profits for the week which ended August 30th
- CHFJPY: 25 pips
- GBPCHF: 100 pips
- AUDNZD: 50 pips
- AUDCAD: 75 pips
Total Profits: 250 pips
Total Profits for August: 1,165 pips
Reduction of Tier II B: 1,000 pips
Total Profits: 165 pips*
*This is the profit we booked according to our approach in order to reduce exposure in our Tier II B portfolio while our clients who followed our PaxForex Trading Recommendations booked 1,165 pips.
Monday, August 26th
USDCAD Short Recommendation
We recommended a short position at 1.0525 with a take profit target of 1.0375 (USDCAD to Correct). This currency pair currently carries a floating trading loss of 15 pips and we will maintain our profit target of 1.0375.
Tuesday, August 27th
USDCHF Long Recommendation
We recommended a long position at 0.9175 with a take profit target of 0.9475 (USDCHF at Support). This currency pair currently carries a floating trading profit of 121 pips and we will maintain our take profit target of 0.9475.
Wednesday, August 28th
AUDJPY Long Recommendation
We recommended a long position at 87.30 with a take profit target of 94.00 (AUDJPY Final Call). This was an addition to our previous two long positions which we took on May 30th and June 6th at 97.30 and 94.00 respectively. This currency pair currently carries a floating trading loss of 1,670 pips. This represents an increase of 348 pips compared to last week. We will maintain our take profit target for all three long positions at 94.00.
Thursday, August 29th
AUDUSD Long Recommendation
We recommended a long position at 0.8880 with a take profit target of 0.9450 (AUDUSD Last Call). This currency pair has not reached the entry point yet and is a few pips away from it. We will keep this order open for next week.
Exit from trades of previous weeks
CHFJPY Hedge
We closed our CHFJPY hedge for a profit of 25 pips on August 26th.
GBPCHF Short Position
We closed one of our GBPCHF short positions for a profit of 100 pips on August 26th.
AUDNZD Long Position
We closed one of our AUZNZD long positions for a profit of 50 pips on August 26th.
AUDCAD Hedge
We closed our AUDCAD hedge for a profit of 75 pips on August 28th.
We had a total of four trading recommendations. Two were new positions which currently carry a floating trading profit of 106 pips. One was an addition which by itself is neutral and together with the previous trades carries a floating trading loss of 1,670 pips. One is another addition, but has not been triggered yet and remains open for next week. We closed four positions form previous week for profits of 250 pips which equal our weekly profits.
Our total profits for August came in at 1,165 pips and just shy of our 1,200 pips prediction. This represents the eighth month out of eight trading months were we generated in excess of 1,000 pips per month. We have closed one of our AUDUSD long positions for a loss of 1,000 pips and in line with our strategy. During the first eight months our total profits amount to 11,269 pips.
In addition to our three executed trades from this week we also carry eleven trades from previous weeks. We have one NZDUSD long positions which currently carries a floating trading loss of 51 pips. We will maintain our take profit target of 0.8150.
We have one GBPCHF short position which currently carries a floating trading loss of 347 pips. This represents an increase of 187 pips compared to last week. We will seek to add to this trade next week and maintain our take profit target of 1.4000.
We have two GBPAUD short positions which currently carry a floating trading loss of 614 pips. This represents an increase of 342 pips compared to last week. We will maintain our take profit target of 1.7050.
We have one EURUSD short positions which currently carries a floating trading loss of 25 pips. This represents a decrease of 159 pips compared to last week. We will maintain our take profit target of 1.3050.
We have four EURGBP positions, three short positions and one long hedge, which currently carry a floating trading loss of 1,139 pips. This represents a decrease of 264 pips compared to last week. We will maintain our take profit target of 0.8275 for our short positions and 0.8650 for our long hedge.
We have two EURAUD short positions which currently carry a floating trading loss of 2,152 pips. This represents an increase of 56 pips compared to last week. We will maintain our take profit target of 1.3585.
We have one CHFJPY short position which currently carries a floating trading loss of 41 pips. This represents a decrease of 145 pips compared to last week. We have adjusted our take profit target to 103.25.
We have two AUDUSD long positions which currently carry a floating trading loss of 1,064 pips. This represents a decrease of 651 pips compared to last week. We have adjusted our take profit target to 0.9450.
We have two AUDNZD long positions which currently carry a floating trading loss of 452 pips. This represents an increase of 221 pips compared to last week. We have adjusted our take profit target to 1.1750.
We have three AUDCHF long positions which currently carry a floating trading loss of 2,776 pips. This represents an increase of 141 pips compared to last week. We will maintain our take profit target of 0.9265.
We have one AUDCAD long position which currently carries a floating trading loss of 180 pips. This represents an increase of 35 pips compared to last week. We will maintain our take profit target of 0.9700.
Our floating trading loss for Tier I A stood at 358 pips. This represents a decrease of 147 pips or 29.11%. Our floating trading loss for Tier I B stood 1,246 pips. This represents an increase of 598 pips or 92.28%. Our floating trading loss for Tier II A stood at 1,139 pips. This represents a decrease of 264 pips or 18.82%. Our floating trading loss for Tier II B stood at 7,662 pips. This represents a decrease of 106 pips or 1.37%.
We hope you enjoy your weekend and that we will see you back on Monday.