Trading and investing update

Greetings all!

In last week’s lamentations over the technical challenges at Coinbase, I mentioned that my re-entry into BitCoin is but one of a set of investments that I’m making. So this week I thought I’d provide an overview of my current trading and investing universe, along with a brief update on each account or position.

Carry Trading

I last discussed my TRY/JPY carry position in this post and the two following. Since then, however, I was hit with a margin call and subsequently redesigned the strategy yet again. Now I make sure to define a maximum risk level and set a stop for the entire position accordingly. This of course can lead to my being stopped out more often, but I suppose that’s better than margin calls. So at the moment, I just have a very small amount remaining in this position as I continue my rocky love-hate relationship with the carry trade.

FA Trading

This Fundamental Analysis based method is the second of my three Forex strategies, and the most promising. I run it in a sub-account at Oanda in order to track the performance separately from the carry trade position. I use a system that allows me to quickly quantify an estimate of the cumulative relative effects of the various economic releases that come out each week for the major currency countries. I’m working on an e-book describing this method in detail, but my current schedule doesn’t allow much time to work on it.

TD Trading

I had great success with this Tick Density technical strategy over a year ago, but I recently had to stop trading this Forex sub-account because of time constraints. The method is good, but the analysis takes much more time than I have available right now. I have an e-book that describes the Tick Density strategy and the research behind it. At some point, when my schedule allows, I look forward to using this strategy again.

Silver ETF

I just recently opened a position in the iShares MSCI Global Silver Miners (SLVP) Exchange Traded Fund (ETF) from my Fidelity brokerage account. I’ll be adding to the position gradually until I reach a certain planned investment level, at which point I’ll begin trading in and out of the fund as it fluctuates in price. Generally I’ll buy more during declines, and sell into rallies, with a bias towards accumulating more shares over time. I chose this fund for three reasons. It’s one on which Fidelity charges no fees for trading, it’s historically volatile, and precious metals is a good thing to have if the world-wide inflation bomb goes off.

BitCoin

I’m still accumulating this in my CoinBase account, although I’m wary of the problems they’ve been having over there. They refunded my doubly-billed amount quickly though, and my subsequent purchases have gone through normally, so hopefully they’re addressing their technical issues. My strategy with this is similar to the silver ETF strategy; accumulate to a pre-planned level, then trade around a core position to take advantage of price fluctuations.

VirWox

Fun! I opened an account here with a small initial deposit in order to play around with some very obscure illiquid markets. Since this blog is all about exploring markets, money, and math, why not expand that exploration to the money and markets used in virtual worlds? That’s what VirWox does. It’s an exchange where people can trade not only USD, Euros, and BitCoin, but Second Life Linden dollars (SLL), Avination currency (ACD), Open Metaverse Currency (OMV) and My Virtual Community currency (MVC). If you’ve never heard of some of these, don’t despair; neither had I. At any rate, what I’m doing here is looking for opportunities to make a market in very illiquid pairs with high spreads by placing limit orders inside the current bid and ask.

That’s all for this week. Until next time…keep pipping up!

 

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