As noted last week, Capital3x performance in 2013 continues to be excellent. We have had a tremendous year and the chatting in the “live trade room” has stepped a notch higher as we dissect and analyse markets from a technical and fundamental perspective. The room is live for 24 hours and hence covers all time zones. Some of the great moments of these last 60 days has been:
1. Short ES at 1675 and the double it up at 1663 to close at 1640
2. Long USDCAD at 1.005 to exit at 1.04
3. Long USDJPY at various levels under 100
4. Long and Short EURJPY
5. Long and Shor tAUDUSD on its journey down from 1.03 to .9600
and much more
We traded AUDUSD regularly making over 400 pips. The drivers behind the trade was as highlighted the falling spread between the US 10 year and Australian 10 year. The USDCAD trade which netted over 2000 pips was a trade played on Canadian banking fundamentals where we looked at Canadian banks and found them to be the most under-capitalised banks in the world.
Changing forex market has made us change our approach. Fundamental analysis is now a regular part of our live trade analysis. Technical studies are used as a means finalise entry and exit points. Merely looking at technical indicators and dreaming about where a pair will reach or not reach is now a mediocre method of trading. An example was EURUSD burst on friday to 1.3050. We clearly highlighted this on Thursday that EURUSD will hit 1.3040 and take stops before retracting.
What our subs will agree is that forex trading has changed a lot over the course of the last 12 months. A BoFA report speaks about the changing color of forex trading and how even stops that are 100 pips are not safe. The intermarket relations have broken down in the face of constant FED manipulations and now are susceptible to even greater volatility as the FED unwinds QE resulting in a mega rally in US treasury yields (10 year touching 2.2%). In Japan, 10 year JGB hits 0.9% and closes at 0.86% up from 0.3%. That is a record rally in yields. Our subscribers will know all this as we discussed consequences of these rallies in yield in two of the world largest funding currencies. We have laid out “what will happen next”? We also laid “what happened last time when such a situation arose”. These are things you will not find anywhere else except at the trade room transcripts of Capital3x.
Unfortunately if you still trade forex looking at a few momentum indicators, the banks and big boys are going to have a field day taking your money and stops. Neither are fib levels safe nor your DMA’s benchmark to trade with.
We have also entered into a association with Nikkei which allows us to bring news and rumors from Japan. The effect of this has been our ability to bring the story on the rise in JGB yield faster than anyone else. What surprises is that few analysts even understand what a 40 tick move in JGB actually translates into? I heard some one on CNBC smirking at the fact “What is the big deal of a rise from 0.9% in JGB. We americans are paying 2.2%”. What he does not udnerstand is 0.3% to 0.9% jump on trillions of borrowed capital spread around the world will have major risk and hedging effects. We have been discussing this at the trade room of c3x and we will see how this spans out over the next few weeks. Japanese PM Abe has been reported to be nervous about this as a new survey in Japan has revealed that households are now finding the current situation to be worse than before as they have higher mortgage rate without any wage inflation.
Here is a free tip:
Massive unwound long contracts are still standing by on Nikkei and have still not found a price to square. The longer they stand open with JGB yields crushing them, the greater the chance of another volatile 10 days ahead. Be careful.
Performance
We have made over 5000 pips since April 1 and over 7000 pips for the entire year of 2013. What gives us great pleasure is that we were able to replicate performance to our subs via a highly sophisticated managed account. Over the last 4 months, the trade copier has performed without a single glitch or an execution error. Subs have a choice of closing trades early at their will or if they disagree with us. There is a great level of independence that the copier allows. Over and above that we are always online chatting about the markets and forex trades. We also monitor your account to warn you incase of any excess leverage or risk you may be taking.
This is an interim performance report and full quarter performance will be released with detail investor reports at the end of June 2013 for the quarter of April to Jun 2013. PLEASE NOTE THAT PERFORMANCE IS DIRECTLY BEING REPORTED FROM THE MANAGED ACCOUNT AS IT IS CLEARLY VERIFIABLE VIA MYFXBOOK AND MT4 statement attached. PLEASE NOTE THAT PERFORMANCE IS DIRECTLY BEING REPORTED FROM THE MANAGED ACCOUNT AS IT IS CLEARLY VERIFIABLE VIA MYFXBOOK AND MT4 statement attached.
If you are already a copier subscribe, you can proceed to the COPIER LOGIN page: TRADE COPIER LOGIN and verify the trade.
The managed account performance has been shared here: MYFXBOOK LINK FOR MANAGED ACCOUNT.
The full MT4 account statement can be downloaded here: MT4 Statement for Managed Account.
Since the beginning of March 2013 till 31 May 2013, Capital3x Managed Account has made +5,097 pips at success ratio of 56%. 251 trades hit targets over 450 trades. Some of the biggest winners were made during this phase. The best winner made 353 pips. The winners were constantly above 100 pips. More details of all trades taken can be found at the MYFXBOOK LINK (CLICK HISTORY)
In terms of dollar value, we made USD 2099 PROFIT on Invested Capital of USD 10,000 keeping an overall low leverage. The average drawdown was a mere 7%. Overall the yearly performance till 31 May 2013 stands at USD 4520 which is a 45% return in 6 months on a invested capital of USD 10K. Please note that profit figure is dependent on the “leverage parameter” you would set in the copier. The above performance is based on leverage ratio of 1 which is the lowest leverage possible.
Our favorite trade has been USDCAD making over 3000 pips in the last 2 months.
The yearly charts are attached:
An invested capital of USD 10000 in July 2011 would be at USD 39000 on May 2013. We continue to maintain a strong upward trajectory on our equity curve.
The quarterly pips from inception
The current quarter of April to June 2013 performance now stands at 3588 pips. Ever quarter since inception we have made over 2000 pips in profits except one. For six out of eight quarter, our profits have been over 3000 pips averaging well over 1000 pips a month. These are numebrs which can only be generated by a superior trading system.
Word to Subscribers: Continue to be present in the trade room. There is a lot to be done next week with ECB and BOE decisions. Chinese PMI over the weekend will play some role but ultimately it is all going to be what happens with the yields in USD and Japan. Zero Hedge has been buzy writing about Hindenburg omen though they are struggling to find a way to meet the 30 day rule. But lets not focus on star gazing but on the ground reality of the consequences of a 40% rise in yields in 90 days which is a record.
If you would like to join us, please subscribe here
We have started a new performance based fee structure where we make fees when we make pips for your account. Please do not join us if you are not ready to invest time and energy with us. This is not a get rich scheme but requires a high degree of patience from your end. There will be days when we will not trade at all until we find the right opportunity.
Feel free to email me in case of doubts at support@capital3x.com
As noted above, this is an interim report and a more detailed investor report will be released at the end of June 2013 with macro views on the economy and detailed technical charts over and above the Quarterly performance reports.
Best of luck.
Important Links at Capital3x
- Financial Intelligence Feed
- The April to June 2013 Quarter Live Trade Sheet
- The Live Trade Room
- The Charts corner
- C3X Performance FX portfolio
