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Happy New Year!
As hard as it is to believe it, 2006 is over. Seems like just yesterday we were saying good bye to 2005. Well, time goes by so quickly. Today we will take a look at the year gone by and highlight some highs and lows. By this I mean not highs and lows of the market but rather the ebbs and flows as they were for us, Spectrum Forex LLC, our services and trading results. Some changes took place, in September we launched a new service, "Rainbow", which breaks away from our traditional, mechanical trading systems. Our 2 EUR-USD services were replaced by one, "Daily Euro".
We expected last to week to be a fairly slow one and so it was. "Rainbow" had only 2 new trades and we closed our 2 positions carried over from before. We took 221 pips loss in EUR-JPY mainly to close our books for the year and to have fresh start in 2007.
Regardless, this system closed the year on good footing, with 595 pips gain in December and 3812 pips in 2006. That's since September, when we officially launched this service and began cumulative tab in public forum- this web site. We use very little leverage in this system as it has been explained many times.
Our "Daily Pound" also had a good year. After flat first 3 months of the year, it started to produce good gains. We closed the month of December with 135 pips gain and 3016 pips earned in 2006. We use this system with more leverage than "Rainbow" so the results are not really comparable but neither are the systems.
The "Daily Euro" went through some rough times this year, nonetheless it ended up the
the year with a gain of 153 pips in December and 393 pips for 2006. This system uses most leverage of any of our services so it still produced decent results. There is more about this system later on in our report.
We continue to work on other potential services. Depending on the results we are getting and interest from users we will be releasing them to the public. As always, feel free to contact us with your opinions, needs and feedbacks. We encourage comments from you, our users and readers as communication is greatly important to us. We are always available at customerservice@spectrumforex.com or info@spectrumforex.com.
We'd like thank everybody for your continues support and wish you a Happy 2007!
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Here are the results we achieved last week:
- Rainbow lost 63 pips, +595 in December and 3812 pips fot the year (since September).
- Daily Pound gained 91 pips, 135 for December and 3016 for the year.
- Daily Euro lost 64 pips, gained 53 for the month and 393 in 2006.
Follow the link on the right to view details. |
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We'll highlight a few trades and calls that were made during 2006. These trades were of long duration. While services are generally giving signals on far shorter time scale, every now and then we see an opportunity for long trades and we feature them in our "Weekly comments". First one is a LONG trade in NZD-USD. We went long at just over 0.6000 at the end of March. Trade lasted till about a month ago when we closed our position for just under 800 pips gain. Since then NZD-USD moved up another 200 pips, nonetheless we are very happy with this trade outcome.
Another notable mention goes to trades suggested on 08.13.2006. We covered NZD in depth in those comments included our views on NZD-CHF and NZD-JPY. Those suggested trades would have paid of handsomely indeed by now...
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Another noteworthy call we made was made on 05.28.2006. We featured our analysis of GBP-JPY and GBP-CHF. We looked at monthly chart of these to crosses and detailed our view on their long term prospects. The outlook was for a few years ahead. In a nutshell we predicted rise in these crosses. Since these opinions were published GBP-JPY appreciated about 2300 pips and GBP-CHF 1100 pips. It's important to stress here that due to extremely long nature of these signals we didn't take trades for that duration, rather we took number of shorter term trades in the direction of call. We plan to be doing it for the foreseeable future. As of right now we think that our opinions are still valid, although in the light of length of these calls some severe pull backs are to be expected. We anticipate to be net buyers on any pullback of few hundred pips. Don't be surprised if they are as deep as 1000 pips, though.
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Our worst trades of 2006.
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Here we are at the 2006 Hall of shame. There were many loosing trades and it's difficult to say which was the worst. Pretty much every time you're wrong some unhappiness arises. Unfortunately, in this business being wrong or taking a loss is inevitable. Couple of things however need to be mentioned here. First and fore most is the weak performance of "Daily Euro" system. It's been third year in use for this system and by far the worst. From March till October the system was in a draw down of 500 pips! That hurt, but the worst part was the long duration of this slide. It has recovered since then and even made new gains for the year. Hopefully next year will be much better. It does however show the importance of commitment to one's trading strategy, since any and every system or methodology will go through loosing periods. Notable mention goes to a trade we initiated on 11.17.2006 in USD-CHF. Set up called for going LONG at 1.2525. That was a very high probability set which didn't work in the worst of ways. Almost immediately the price broke down dramatically. Trade was made using hourly charts but we chose to show it here on 4hour graph in order to better demonstrate the magnitude of following sell off. We were lucky, we cut our losses fairly quick, but this is the kind situation which ruins accounts. This serves to show that there are absolutely NO guarantees.
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What can we expect in 2007?
As of right now we believe that we will see a strength in USD. We don't know whether it will last all year or large parts of it but we think the following will happen. EUR-USD will fall to about 1.2000, USD-CHF will get as high as 1.3500 and GBP-USD will reach 1.8000 or so sometimes during 2007. As for USD-JPY, 130 seems very realistic to us. We don't have very strong opinions about either AUD or NZD apart from the fact that AUD will likely be stronger of the two. Last but not least, CAD should not loose as much ground but how about USD-CAD at 1.2500? We should stress that these views will be adjusted depending on actual market developments.
Once again, the staff of Spectrum Forex LLC would like to wish you a very Happy and Prosperous 2007!
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Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com . |
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