The second-quarter ended as well as the first half of 2013 ended and it was a volatile run so far. The GBPUSD whipsawed back and forth and allowed us to exit all our positions which were in our portfolio since the first trading day of 2013. Our overall exposure to the Sterling was reduced over the past six months down to four EURGBP positions which we expect to reduce in the third-quarter. Overall the first half of 2013 was a mixed half for us.
We have outperformed on our earnings side and constantly delivered above 1,200 pips per month which was above our expectations. Our floating trading loss has remained within the same levels as previously, but we have implemented a new strategy which will allow us to reduce our floating trading losses through the second half of 2013 and we expect to reduce them by 75% over the course of the next six months.
We closed the second-quarter of 2013 with total profits of 4,814 pips which is 1,214 pips or 33.72% above our expectations. This compares to a first-quarter performance of 3,965 pips. We have increased our profits by 849 pips or 21.41% in the second-quarter. Overall profits for the first half of 2013 total 8,779 pips and are 1,579 pips or 21.93% above our expectations. We expect to keep the positive earnings momentum which will allow us to reduce our floating trading losses which is why we maintain our monthly profit target of 1,200 pips while we aim to reduce floating trading losses by 600 pips each month.
Overview of profits for the week which ended June 28th
- EURAUD: 250 pips
Total Profits: 250 pips
Monday, June 24th
USDCAD Short Recommendation
We recommended a short position at 1.0520 with a take profit level of 1.0400 (USDCAD set for Correction). This currency pair has bounced around and we currently carry a floating trading loss of 2 pips. We will maintain our take profit target of 1.0400.
Tuesday, June 25th
AUDUSD Long Recommendation
We recommended a long position at 0.9230 with a take profit target of 0.9630 (AUDUSD Last Call). This was an addition to our previous two long positions which we took on May 14th and May 28th at 0.9930 and 0.9630 respectively. Our stop sell order at 0.9150 was triggered as well and we currently carry a floating trading loss of 1,373 pips. This represents an increase of 247 pips compared to last week. We will maintain our take profit target of 0.9630.
Wednesday, June 26th
CADJPY Long Recommendation
We recommended a long position at 93.00 with a take profit target of 95.00 (CADJPY at Support Zone). This pair has started to rally and we currently carry a floating trading profit of 120 pips. We will maintain our take profit target of 95.00.
Thursday, June 27th
USDCHF Short Recommendation
We recommended a short position at 0.9440 with a take profit target of 0.9200 (USDCHF runs into Resistance Zone). This was an addition to our previous short position we took on June 13th at 0.9150 as well as our long position we took on June 5th at 0.9470. We currently carry a floating trading loss of 337 pips. This represents an increase of 12 pips compared to last week. We will maintain our take profit target of 0.9200.
Exit from trades of previous weeks
EURAUD Short Position
We closed our EURAUD short position on June 27th for a profit of 250 pips as we closed this trade at 1.4000.
We had a total of four trading recommendations this week; two new trades and two add-on positions. Our two new positions carry a floating trading profit of 118 pips. Our two add-on trades carry a total floating trading loss of 1,710 pips which represents an increase of 259 pips compared to last week. We closed one of our EURAUD short positions for a profit of 250 pips which totals our profits for the week.
PaxForex closed the month of June with record profits of 1,740 pips which follows our previous record breaking month of May where we earned 1,677 pips. This compares to April’s profits of 1,397 pips, March’s profits of 1,531 pips, February’s profits of 1,132 pips and January’s profits of 1,302 pips. Our total profits for the first half of 2013 were 8,779 pips.
In addition to our two new trades as well as tow add-on trades we also carry five positions from previous weeks. We have four open NZDUSD positions, three long positions and one short hedge, which currently carry a floating trading loss of 864 pips. This represents an increase of 20 pips compared to last week. We will maintain our take profit target of 0.8235.
We have four open EURGBP positions, three short positions and one long hedge, which currently carry a floating trading loss of 1,422 pips. This represents an increase of 126 pips compared to last week. We will maintain our take profit target of 0.8275.
We have three open EURAUD positions, two short positions and one long hedge, which currently carry a floating trading loss of 2,354 pips. This represents a decrease of 37 pips compared to last week. We will maintain our take profit target of 1.3585.
We have four AUDJPY positions, three long positions and one short hedge, which currently carry a floating trading loss of 1,090 pips. This represents a decrease of 59 pips compared to last week. We will maintain our take profit target of 94.00.
We have three open AUDCHF long positions which currently carry a floating trading loss of 1,687 pips. This represents a decrease of 71 pips compared to last week. We will maintain our take profit target of 0.9250.
Our total floating trading loss at the end of the week stood at 9,009 pips. This represents an increase of 120 pips or 1.35% compared to last week. We have stabilized our increase in floating trading losses and now hope to be able to reduce our floating trading losses at an accelerated pace. This week’s floating trading losses are a 2013 high and for the first time floating trading losses have eclipsed total profits.
This is partially due to our steps taken during June in order to be able to implement our more aggressive floating loss reduction strategy and we expect that our current floating trading loss represents the peak from which we can gradually exit older positions primarily due to better than expected profitability.
The AUD has been a particular challenge and represents 6,504 pips or 72.19% of all our floating trading losses which is up 80 pips or 1.25% compared to last week. All AUD crosses have started to show a stabilization process and reversal formation began to form which is why we expect a full exit of all AUD trades in the second-half of 2013.
We hope you enjoy your weekend and that we will see you back on Monday.