Wednesday, January 09, 2008

Another Trading Update

Just bought my first Nikkei Futures contract - a mini contract that is worth $13,000 or so. This is a model based trade, which I'll hold till either stopped out or the model changes direction. This is the smallest futures contract I can trade. I feel I am understanding my model better in the last few days since I integrated together the three separate programs and I am pleased with my recent SPI daytrading in terms of discipline. So I'll continue to trade the model as I started yesterday. I now have the flexibility to put model-based trades on in either US, Australian, or Japanese markets. Going forward I am likely to diversify across these to reduce risk further. Currently, the US indices are long, the Australian is still short for probably the next day, and the Nikkei is on the cusp of long or short. It's a borderline case. I might buy some FXI later too.

According to Bespoke Investment the NASDAQ index has gone up on the ninth day all eight times that there have been eight consecutive down days in the last twenty four years. Eight isn't a big sample of course, but eight in a row is interesting. Will the streak be broken. The model is pointing up. But it was pointing up yesterday too.

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