September was my best month to date. While not everything might have gone exactly to plan, my trades worked out pretty well overall.
I placed eight trades in total, seven of which were profitable. By far and away my biggest winning trade was the Anti-Hedge trade opened on September 6th and closed out on the 10th. Not only was the gearing on this trade higher than normal at 14:1 but it coincided with the first negative NFP number in four years. The high gearing is due to the fact that I closed out numerous trades simultaneously when the credit crunch was first unfolding in early August. This large single trade was in effect putting all those trades back on at once.
My initial forays into trading the USD-JPY have been generally positive so far. The is-it-on or is-it-off uncertainty surrounding the carry trade dynamic means that this pair has been relatively range bound all month. The yen seems to be slowly losing ground against the other main currencies of the world (including euro, sterling, etc.). The weakness of the dollar has been a major contributor to the range bound nature of USD-JPY. I think that the yen is slowly building up to another day of reckoning and I definitely don’t want to be short yen when that happens.
My overall return for the month of September was 19.78%.
When the EUR-USD Anti-Hedge trade hit its profit target in the first half of the month my return was boosted into double digits. My primary focus for the remainder of the month was to preserve those gains. To prevent me from only looking back at what I had made so far, I decided to set myself a new objective for the month: to generate a return of 20% for the month. While I just missed out on that figure I don’t think I can berate myself at all, especially since this return represents over twice what my previous best was (9.5% in January).