Trading Update
I haven’t posted any trading updates in a while so here it goes. I’ve been trading a simple volatility strategy on a forex demo account with great success. The account is up close to 10% in about a week! The way the system works is that it takes small gains from low level randomized movement. Most losses are quite a bit larger (stoploss is 5-10x the take profit), but since wins are so frequent they offset losses and then some.
I have my account funded at OptionsXpress. I wanted to trade GOOG options on Thursday due to an investor news conference. However, I had class and wasn’t able to do so. Had I been at a computer and done the trade I estimate I would have made 30-35%! Also, on Friday I forecasted that the market (as represented by QQQQ) would gap in one direction or the other and then go in the opposite direction. I didn’t have enough confidence in my prediction to trade it but I turned out to be correct. The return would have been quite high. It could have been a lucky guess so we’ll see how my future forecasts go.
