2016–07–12 Equity high and why closing red positions is healthy for the account
After the big rally on USDJPY and achieving a new all time equity high on the account and reaching heavy support on ninja, I decided to close all ninja (usd/jpy) positions lowering exposure, increasing margin and securing the equity high. Will wait and see the outcome of the current levels and with margin free again I can look for diversification and re-balancing portfolio for another wave. Gold is expected to correct further, might look for some lower buy entries.
Euro should stay bearish biased. The difference between short term and long term strategies are huge. Short term I seek big profits with short SLs and would buy above 1.11. Long term I look for several small profits with small positions and would sell above 1.11, adding positions. The portfolio works as a basket and profits and draw down change with some pairs making profits, while hedging other pairs and then cutting all profits while other pairs accumulated profits and performed as expected to achieve the expected growth in account with risk and diversification of assets to keep a healthy account.
So today many ninja red where closed, but trading ninja bullish hedged account while eurusd and gpbusd where been traded bullish too. Now after turning eursd and gbpusd back to bearish sentiment It was time to exit ninja before the rally reaches an end and draw down would lower equity. Exposure is low again and current pairs traded in range.
Quote regards usdjpy: “Further recovery in the US 10-year treasury yields has been supportive of the pair’s additional up-move on Tuesday. However, a sharp slide in Japanese 10-year bond yields has now led to expanding yield differential, possibly suggesting that the USD/JPY bulls might take some breather at higher levels.” End Quote
