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April seems to have been an unusual month in the currency trading
markets. To cut to the chase, both C150 and C450 ended up positive for
the month with C150 barely keeping it's head above water. These are the
final gross numbers before the percentage performance fee is deducted.
Cannon 150 Gross Percentage Profits: 0.79%
Cannon 450 Gross Percentage Profits: 1.74%
A more detailed explanation of results follows...
C150
Our core C150 System
was up 5% earlier on in the first week then struggled to hold on to the
first week gains as it's USD/CHF Long positions finally ate away the
early gains to finish the month just below 1%. The good news is
that C150 has now had 5 months in a row of positive returns and in a rough
month it was able to hold onto the 78% gross returns of the
previous 4
months and even add a little to it. Even after subtracting
Galleon's 25% Performance Fee, C150 clients would have a gain
each month.
C450
C450 also
had a very interesting month. It held very true to it's hypothetical back
tested results maintaining what appears to be no less than a 2%
intra-month draw down. Since the design of C450 requires it to take
both long and short positions in currency pairs at the same time, C450
has both Long and Short accounts whose results take a little bit more
explanation.
The C450 Long account was actually down -2.02% in
April 2006 but the C450 Short account was up 5.51% for a combined gross
total gain of 3.50%. This number is before performance fees are
deducted. Since performance fees are a percentage of Net New Profits,
any positive return, no matter how small, still means a positive
return for clients.
Also worth noting is that C450 was crippled
this month since it started trading on April 8th. It only had 3 weeks
of being in the market so it also missed out on the early 5% run that
it would have enjoyed just like C150 did in the first week. So, if
C450 had a full April month to work with, it could have potentially
finished up closer to 10% for the month. This means C450 beat our core
C150 and could have in fact done better still. This gives you an idea
of what we have to look forward to as C450 enters it's first full calender
trading month in May now.
Funds at risk? This is always a common
question and what I think is one of the most important.
If you
understand "Usable Margin %" and what it means in terms of a Forex
Trading, you should know that it gives you a good gage as to what
percentage of your account is actively at risk at any one time. Well,
in watching C450 in action these last few weeks, we have never seen more than 10%
Margin used at any one time in both the long and the short accounts.
This means that 90% of your funds are not even in trade or even ever at any
substantial risk. The average number of positions held seems to be
less than 20 with 20 open positions being at the high end. The
combination of the C450 low margin use, intelligent algorithms and the diversification
has the net effect of smoothing out the equity curve making for nice steady
gains.
We are very encouraged and excited about the results we
are seeing with C450 as I quote one of our Cannon System
Developers; "I wish I had more of my own money to put into C450"
Remember, Nothing
here should be taken as financial advice or be perceived as a
recommendation. You should seek the advice of a licensed professional
before making any investment decision.
But in my opinion, I think C450 has an
exciting next couple months ahead as world events have a tendency to
create volatility in the currency markets. And knowing the Cannon Strategies
Systems thrive on volatility this summer should be a interesting. It may be time to read this website as
thoroughly as you can and think about getting on board if you are not already.
GalleonFX Staff
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