FKLI Performance Summary: May13 contract

A volatile month for Malaysia equity market. Fortunately, system managed to take advantage of market condition and make a profit. System did 12 trades, including pre-election a short, which turned out to be a big loser. Anyhow, 9/12 is the win lose ratio. Below are the results:-

Position Update 20130531

No one cares about your profits and losses, they only care about theirs.

FKLI
Nil

FCPO
L2393 (30/05), Open position

Position Update 20130530

Don't wait until it's perfect.

FKLI
L1780.5 (29/05), C1772.5 (30/05)

FCPO
L2411 (29/05), C2380 (30/05)
L2393 (30/05), Open position

Position Update 20130529

Drawdown is inevitable. If you avoid drawdown, you are avoiding profits at the same time.

FKLI

L1769.5 (28/05), C1773.5 (29/05)

L1780.5 (29/05), Open position

FCPO 

L2411 (29/05), Open position

Position Update 20130528

If you don't fully accept and love yourself as you are, you could be more prone to comparing yourself to others as a way of artificially boosting your feeling of self-worth. 

FKLI
S1761.5 (23/05), C1769.5 (28/05)
L1769.5 (28/05), Open position

FCPO
L2383 (27/05), C2375 (28/05)
S2375 (28/05), C2399 (28/05)

Position Update 20130527

The diabolical purpose of the market is to continue higher (or lower), with as few people on board as possible.

FKLI
S1761.5 (23/05), Open position

FCPO
L2383 (27/05), Open position

Position Update 20130523

FKLI
S1778.0 (22/05), C1771.5 (23/05)
S1761.5 (23/05), Open position

FCPO 
L2369 (23/05), C2350 (23/05)

Position Update 20130522

FKLI
L1780.0 (21/05), C1786.0 (22/05)
S1778.0 (22/05), Open position

FCPO
L2340 (21/05), C2352 (22/05)

Crude Oil Performance Summary: Jun 2013 Contract (CL-M13)

System did 13 trades with 10 winners and 3 losers.

Position Update 20130521

The best market guru is the market itself.

FKLI
L1780.0 (21/05), Open position

FCPO
L2342 (20/05), C2329 (21/05)
L2340 (21/05), Open position

Position Update 20130520 + Account Statement

Received an email asking whether system trades real money or just "demo account". To prove that real money is involved, I will show part of the trading account statement in this posting.

<img src="statement.jpg" width="846" height="185"></body>
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FKLI
Nil

FCPO
L2342 (20/05), Open position

Position Update 20130517

Never lose sight of your portfolio total risk exposure.

FKLI
S1772.5 (16/05), C1766.0 (17/05)

FCPO
L2309 (16/05), C2330 (17/05)

Position Update 20130516

The fewer parts it has, the less likely it is to break down.

FKLI

S1789.5 (15/05), C1782.0 (16/05)

S1772.5 (16/05), Open position

FCPO

L2309 (16/05), Open position

FCPO Performance Summary: 16 Apr - 15 May

System did 12 trades, 10 winners and 2 losers.

Position Update 20130515

Successful traders accept diverse possibilities, disorder, randomness, and chaos. They develop strategies to deal with such uncertainties.

FKLI
S1789.5 (15/05), Open position

FCPO
S2310 (13/05), C2286 (15/05)

Position Update 20130514

The problem with liquidity is that it is never there when really needed.

FKLI
L1776.0 (13/05), C1782.0 (14/05)

FCPO
S2310 (13/05), Open position

Position Update 20130513

If you want to make easy money, don't be a trader. Trading is one of the toughest ways to make easy money.

FKLI
S1769.5 (08/05), C1768.5 (13/05)
L1776.0 (13/05), Open position

FCPO
L2310 (10/05), C2330 (13/05)
S2310 (13/05), Open position

Position Update 20130510

无法得到民心的领袖，迟早会被换掉。

FKLI
S1769.5 (08/05), Open position

FCPO
L2290 (08/05), C2297 (10/05)
L2310 (10/05), Open position

Position Update 20130509

It is a man's own mind, not his enemy or foe, that lures him to evil ways.

FKLI
S1769.5 (08/05), Open position

FCPO
L2290 (08/05), Open position

Position Update 20130508

It wasn’t possible to make money without the threat of losing it.

FKLI
S1769.5 (08/05), Open position

FCPO
L2268 (07/05), C2271 (08/05)
L2290 (08/05), Open position

Crude Oil Futures

CME Crude Oil Futures (CL), also known as West Texas Intermediate (WTI) is one of the most active and liquid market in the futures market. WTI is the benchmark for Crude Oil pricing. In Malaysia, it didn't enjoy the same popularity as compare to our beloved FKLI and FCPO. It is probably due to its long trading hours and volatility. It trades almost 24 hours a day. However, I strongly recommend this market to readers because of its volatility, liquidity and profit opportunity.

Click here to know about Crude Oil Futures Contract Specs.

As usual I will share with you system performance in this market for the past 2 months.

Position Update 20130507

I would rather lose than cheat.

FKLI
Nil

FCPO 
S2262 (03/05), C2249 (07/05)
L2268 (07/05), Open position

Position Update 20130506

I know you are going through hell like I do, but keep on going. NEVER NEVER NEVER GIVE UP. When you feel like giving up, remember why you held on for so long in the first place. 

FKLI
S1694.0 (03/05), C1730.0 (06/05)
L1740.0 (06/05), C1798.0 (06/05)

FCPO
S2262 (03/05), Open position

Go to vote!

I've exercised my right, haven't you?

Position Update 20130503

Disregard for the past will never do us any good. Without it we cannot know truly who we are.

FKLI 
S1703.0 (02/05), C1701.5 (03/05)
S1694.0 (03/05), Open position

FCPO
L2280 (03/05), C2262 (03/05)
S2262 (03/05), Open position

We are heading into the polls on Sunday. We are expecting volatile movement when market reopen on Monday. Attached FKLI and FCPO daily chart during 2008 GE12 for your reference.

Position Update 20130502

Successful traders  face the same frustrations, hurdles, and fears as everyone else. The difference is in the way they handle their fear. Rather than feeling defeated or immobilized by their fears and worries, they conquer them.

FKLI
S1703.0 (02/05), Open position

FCPO
Nil

Order Types and How to Use Them

I am writing this post to explain few types of orders we normally use in trading.

Market - This is the most basic and frequently used order type which tells the exchange's computers to execute your order at the next available price.  If you are buying your fill price will be the next available offer and if you are selling your fill will be the next available bid. To get a better indication of where you might be filled you need to look at the current bid/offer. For example, above is the bids/offers for Crude Oil June13. If you Buy Market 1 lot, you will get fill @ 92.98. If you Buy Market 10 lots, you will get 1 lot @ 92.98 and the remaining 9 lots @ 92.99. The difference between bid and offer is known as spread. In a liquid market like Crude Oil futures, the spread is small, in this case, 1 tick.  The advantage of using market order is that you will certainly get your fill in the fastest possible time. However the pitfall is that in a fast moving market, when liquidity is low, you might get very big slippage.

Limit - This is an order to buy or sell at a designated price. Normally we place a limit to buy is below the current market price, while a limit to sell is placed above the current market price.  For example, you place a Buy Limit Order for Crude Oil futures 10 lots @ 92.00 when market is trading higher (92.97 vs 92.98). All orders are filled on a First In First Out basis (FIFO); your order will be placed in the queue on the exchange’s computers.  Your order will only be filled after those orders in front of yours are executed.

Stop - Stop order are used as stoploss as well as entry for some traders. A Buy Stop Order is placed above the current market price and Sell Stop is placed below the current market price. Stop Order is a price order turn into Market Orders once the designated price trades. For example, we place a Buy Stop Order 10 lots Crude Oil futures @ 94.00, when market is currently trading @ 92.89 vs 92.90. When market trades @ 94.00, our Buy Stop 10 lots @ 94.00 will become Buy Market 10 lots. This means when market trades @ 94.00, we will buy 10 lots Crude Oil at next available offer price. Once triggered, our order will compete with other incoming Buy Market Orders; therefore doesn't guarantee our fill price same as the Buy Stop Price.  The difference between Stop Price and Fill Price is slippage.  

Order Cancels Order (OCO) - An OCO is actually two separate orders that are placed around a position, one of the orders is your Limit order to take a profit and the other is your Stop order to get out at a loss.  The advantage of this order is that once the profit or loss order is hit, the trading platform will cancel the remaining order for you. For example, you buy FCPO @ 2280 and place your Stoploss, a Sell Stop Order @ 2269 and Profit Target, a Sell Limit @ 2300. Once market trades either 2269 or 2300, the other order is automatically cancelled. However, I don’t think Bursa Malaysia Derivative or futures brokers in Malaysia offer this order in their services.  

Trailing Stop - A trailing stop allows you to enter a Stop loss order and have it move as the market moves in your favor based on your preset parameters.  This allows you to lock in a potential profit if the market moves in your favor.  Let say you short FCPO @ 2280, with stoploss @ 2300 and no profit target. When market moves lower to 2250, you can have your stop moved lower down to 2265. You may continue to lower your stops if market moves lower, ultimately when market reverse and take out your stops, you are out with reasonable profits. But don’t forget stops order doesn't guarantee you exit at your designated stop price. There might be slippage.

There are numerous more advance orders that are available in the marketplace but I don’t think they are available in our markets yet. So, I won’t cover here. Now, you know the type of orders. Try to incorporate these orders in your trading strategy and hopefully it helps you in your trading.