Short AUD/USD (25-Jun)
Real-Time AmpGFX – converted AUD/USD to AUD/Gold, comment (China, US, AUD) (Mon 6/25/2018 12:21 PM MT)
Bought one AUD/USD at 0.7401 to close short position
Bought half unit Gold/AUD at 1712.37 (new position)
Real-Time AmpGFX – sold AUD/USD (new trade) (Mon 6/25/2018 12:04 AM MT)
Sold one unit AUD/USD at 0.7415
Comment
The fall in Asia EM currencies has been broad and significant led by the CNY.
It appears to have momentum and may persist to start the week. So we have decided to go with it treating the AUD as a proxy for Asia and China led currency developments.
Position
Short one unit AUD/USD at 0.7415; s/l 0.7453; t/p 0.7178
Our Capital at Risk: 102bp
By setting an initial stop loss of 0.7453, our (AmpGFX) percentage loss would be 0.51%. Based on our trade size this represents 102bp or 1.02% of our trading capital.
In the past, I have provided some guidance on the relative size of our trades using “units”. I am working on providing a clearer understanding of the actual amount of capital we have at risk, as reflected in the results we report on our website.
How much capital an investor will allocate to each trade will depend on their capital base (assets under management), risk tolerance, and how each new trade might be considered to add to the existing risk in the portfolio.
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