9/7/08 Update at the end of this article.

With sincere regret and our deepest apologies we have decided to stop trading the PAMM (Main Client Trading Accounts) accounts associated with the Cannon System as of the end of August 2008.

This month was not the turn around month as expected – in fact, it was just one more double digit draw down month that we could not afford, down -16.80% for the Euro Pamm and 18% for the USD PAMM.

August 2008 did indeed break the overlong whipsaw channel (approximately 500 pip range) from March till July that was very rough on our system. But it broke it in the direction of strong dollar with a force and pattern that was unexpected. All the major currencies – Euro, British Pound, Australian Dollar, New Zealand Dollar – fell relative to the dollar by large degrees: EURUSD fell 1650 pips or 8.5%, GBPUSD fell 2200 pips or 10.5%, AUDUSD fell 1400 pips, or 13.5%, NZDUSD fell 900 pips or 10%, and so on. These are significant figures when we take into account that these same markets had not moved more than 3% for the last 4 months prior. What could have possibly caused this fall is anyone’s guess at this point. The fact is, for the last 5 years the currency markets -- along with all the commodity markets -- had been on upward trend (approximating in many cases a 40% upward slope), and this advanced trend probably had to face the inevitable ceiling of resistance and significant market correction. No one would have guessed that it would come at this time.

Though we have not posted news in a while, we've still been hard at work on the back end here. We're preparing news and updates now to be posted at the end of the month.  Though our performance has not been that great the first half of the year, we should still post positive returns for June with more encouraging news to follow in the next update regarding our trading systems.  We still have lots of time to turn a nice positive year and people that have faith in our abilities to pull things out every year will see this as an opportunity to get in now.

More to follow shortly...

These results can also be seen in Currency Traders Magazine on page 41 of the magazine which is also available for download from their website.

Galleon has remained among the top four FX managers in the world during the last 4 months of 2007 ending the year with a 97.35% net return as calculated by BarclayHedge.

We've just posted our March results.  They are positive with the EUR and USD in the range of only +1.0% up, but  lower than expected.  Accounts were up more than 10% for most of the month and dropped the last couple days of the month when the broad market trend (of rising euro and Yen) reversed. April is getting off to a good start and we expect it to be a more fruitful month.

December results from BarclayHedge's Managed Currency Fund Rankings were released last month in February.  Once again Galleon is right near the top for the 4th month in a row in 2nd place with 12.15% net returns for the month of December.

These results can also be seen in Currency Traders Magazine on page 38 of the magazine which is also available for download from their website.

Galleon has remained among the top four FX managers in the world during the last 4 months of 2007 ending the year with a 97.35% net return as calculated by BarclayHedge.

With what we have learned in 2007 and with the adjustments and improvements we've already made to our systems, it could be possible to net our clients 100% in 2008, even after starting the year with our worse month ever in January.  We have had a very encouraging February, and March, at the time of this news item is already positive.  Of course there are no guarantees and past performance is surely no guarantee of future results.

We are pleased to announce an encouraging return for February 2008 with our new additional strategies making profits for us already.

The month on the whole was somewhat difficult. For the first three weeks the currency markets were volatile and erratic. It was hard for the strategies to find a grip and profit on short lived moves up and down.  But by the end of February the markets had become decidedly bearish against the Dollar. We initially profited from this anti-dollar move with many longs on the major dollar paired currencies (EURUSD, GBPUSD, AUDUSD, NZDUSD), and then after many of these reached their predefined profit targets, we profited from shorts on the major Yen paired currencies (GBPJPY, AUDJPY, CADJPY).

We are now accepting Affiliate commission payment instructions for paying out affiliate commissions.  The debit cards we were promised are still not available yet but we have additional options. We also finished updating all affiliate commission records and calculations in our system and commission amounts should be accurate now. 

Due to the increasing complexities of moving money around now days we only have 2 options for sending commission payments.  One is by bank wire if your commissions total a minimum of $500 (plus  a $30 bank fee) and the other is by e-gold.  We will lower the minimum wire amount if our bank can easily handle these wires without too many problems or issues.  We know e-gold is still having problems but many people are still using e-gold and we do have some e-gold ourselves just sitting around.  So if you would like to be paid by e-gold still, we can accommodate you and with no minimum.

Affiliates can get further details regarding submitting payment instructions by logging into our website here. Once you are logged in, click "My Profile", then click the "Payments" tab for further instructions.

Other than day to day operations, getting commissions to our affiliates has been our first priority. It all took much longer than we had expected to get to his point and it was much more complicated than we had planned on.  We apoligize for the delay in getting to this point but the technical challenges and what we are doing is unlike any other forex affiliate program has to offer.   Because our brokerage firms systems are independent of our affiliate tracking system, we needed to invent ways of importing, calculating, assimilating matching up trading clients with affiliates and syncing them together.  It consisted of writing 100s of pages of custom code to get to this point and we still have more to polish up. 

Once again, thank you for your patience in this matter and we look forward to sending commissions as we begin processing affiliate payments this week.

Previously our clients only had 2 currency account types to chose from.   A US Dollar account and a Euro account. 

For the past 2 years we had been recommending holding Euros over dollars and it worked out well for us all since during that time we saw the Euro go from costing about $1.25 to a high near $1.50.  Meaning if you were holding Euro, they have increased in value.

As we go forward we are watching the really starting to inflate their USD currency more and several other countries are starting to follow but to a lesser degree.   One reason other countries are creating easy money is that if they do not print more of their own currency along side the US, they will have a harder time selling and exporting products to the US and their economies will suffer as well.   Of course this does not help the situation and just leads to more inflation and rising prices for all commodities almost everywhere in the world.   The global prices of gold and silver are a testament to such a situation happening.

Watching this money game happen, the key is to hold your funds in a currency that is least likely to be inflated.  In other words;  which currency or currencies will stand the best change of appreciating the most against the majority of all other currencies over the next several months or few years.

Doing such analysis has lead us to the Japanese Yen (JPY) as being one of the stronger currencies we believe will become stronger over the next year or  two.  This being the case, In November we starting moving some of our own funds into JPY and starting preparing a PAMM Trading account for our client base as well.   A 50/50 split between JPY and EUR is not a bad idea with a preference for JPY and deemphasis on putting many long term funds into USD

A common question we have been getting is along these lines...

"I notice my account making nice gains and profits but then there may be a pull back and I find myself in the negative again. Why don't you take profits while you're ahead?"

The answer can actually be quite deep and complicated but I'll attempt to keep it simple.

If you have followed our news on our website for a while, you will know previous draw downs have provided us important information we have used to strengthen our strategies or even develop new strategies that not only would have prevented or lessened draw downs in the immediate term, but also provide for additional profits throughout the extent of our back testing periods which can be as much as 30 years.

If you have been keeping up with any market news you know that this January 2008 has been an unprecedented  month with extreme volatility and erratic movements in both US and world markets.  The uncertainty in the markets has no  doubt helped push gold over $918/oz even as I write this. 

No forex system or trader can stand the test of good long term trading results unless they can react quickly and learn from draw downs for quick recoveries.    We believe this to be one of our strengths as we have already proved such several times in the past.   We also feel it is very important as well, to keep you informed of what is happening and why, along with how we are reacting to what is going on.  We appreciate your patience as it does take time to analyze situations, react and provide such updates as these.

Important Affiliate News

We have been making lots of progress on finalizing many parts of our custom IB Affiliate system. All accounts funded as of Dec 2007 have been updated as Funded in the Affiliate Area.  The first run of default commissions has been calculated as well.

If you have been promised, earned or granted Introducing Broker (IB) status with Galleon to earn a higher rate of commission please check that your Affiliate records are updated properly in the Affiliate Area.  In the Affiliate Area you  will see a link that shows you exactly what rate you're being paid at.

Recently released are the November results from Barclay Hedge Managed Currency Fund Rankings and  once again Galleon is right near the top for the 3rd straight month in a row in 4th place with 5.18% net returns for the month of November.

These results can also be seen in Currency Traders Magazine around page 34 of the magazine which is also available for download from their website.

Galleon has remained among the top four FX managers in the world now for the last 3 months and has recently posted yearly returns that beat out most for the year of 2007.

WIth what we have learned in 2007 and with the adjustments and improvements we've made to our systems it could be possible to net our clients 100% in 2008.   Of course there are no gaurantees and past performace is surely no gaurantee of future results.