Background on the trade: This trade is part of the Donchian Channel breakout system I trade. From late last year and into this year the Yen was extremely weak and my Donchian system captured a huge part of that move. After that trade ended, the Yen has been trading in an ever tightening range. I […]
Overview: Aside from the weak Japanese Yen, trends in major currencies this year have been fairly short lived. Short and choppy trends are one of the reasons to supplement an outright trend following trading system with options, but that’s not really what this post is about. Last week I had two Donchian breakout trades get […]
Overview: Yikes, the week ending November 8th, 2013 was not gentle to Theta Trend. I closed out two trades for losses after having the stops hit. Both the EEM and GLD vertical spreads were closed and the only option trade still running is the QQQ vertical. There is also a quick mention of the FAN […]
Overview: The ETF’s below fill the three top spots in the ETF monthly rotation system. Because this is the first month that I’m trading the system and initiating new positions, there is a little *gasp* subjectivity involved. Opening Trade: Bought 265 shares of FAN at 11.20 on 11/1/13 As part of the diversified trend following […]
Note: The system itself is not original and borrows heavily from the ideas presented by Mebane Faber in his book, “The Ivy Portfolio,” and his paper, “Relative Strength Strategies for Investing.” There is a similar monthly ration system presented on the CXO Advisory website. Discussion of the Monthly Rotation System Towards the end of every month, I’ll go through and […]
Overview: Yesterday (October 31, 2013) I was filled on an EEM options trade about 30 minutes before the markets closed. Price broke down intraday and the risk reward became favorable enough to sell a put spread. See the trade details below chart. Details: Sold the EEM 42/38 December Put vertical for an .82 credit. EEM […]