Gold Price Down on 21 June 2012

Dear ETP Auto Traders,

Gold price was battered on Thursday after an industry survey indicated that manufacturing growth in June 2012 was at its slowest pace in 11 months. This slowed the hiring in the sector as overseas demand for the U.S. products weakened.

Gold price still below the 150 Day Moving Average (DMA) and touching support line price level of USD1,550.



Another commodity which took a hit was Crude Oil. Crude oil futures traded below USD80 per barrel for the first time since October 2011 after a number of weak U.S. data added to concerns over the economic recovery of the world’s largest economy.

China's dismal manufacturing data and the euro zone crisis further dampened the appeal of growth-linked assets.

Yours Truly,

Tony Chai

Greek's Sunday Election Impact On The Market

Dear fellow ETP Traders,

As of 15 June 2012, Gold (XAU) price has been slowly gaining momentum to climb towards the 150 Day Moving Average (DMA). This is a critical support level that has been broken in mid Nov 2011 and in early Mar 2012. So far, Gold price has not been bullish since the beginning of 2012. Prices have been moving up & down, but have yielded price movements which provided great opportunities for swing traders who took both sides (buy & sell) of the trades.

Gold price has been moving up lately, partly due to the Spain banking bailout for the moment. But this Sunday, investors wait with bated breath of the outcome of Greek election. Will the hard-left bailout-denouncing Syriza party win the election? If so, will the leaders declare their intention to default on Greece's debt and leave the Euro Zone. Experts felt that the impact has been factored into the market. They have been used to discounting and anticipating the failure of Greece's government to meet its financial obligations.



So will the outcome of the Greek election create a major impact to the Gold price movement? Watch the price level at the 150 DMA very closely. If it breaks below this support line again, I will be very cautious with my Gold buying strategy. I will take more opportunities with my sell trades.

Take care,

Tony Chai

Is this recent Bullish Gold movement sustainable?

Hi fellow ETP Auto Traders,

Gold spiked about USD60 on Friday, 1 June 2012, riding on the dismay news of the US Job Report for May 2012. But is this bullish movement sustainable? Gold prices went up about USD20 on 6 June 2012 but sizzled out at the end of US trading hours.

I don't like to predict Gold's movement. Anyway, no one can predict how any market is moving. I can only be more cautious of the bullish gold movement. That's how I have adjusted my ETP set file. I ensure the entry is more stringent. And when the entry is triggered, I will make sure that I don't ride the profit too far ie. I manually exit my trade if I am able to capture at least 50 to 60% of my profit target.

Yours Truly,

Tony Chai

My Live Trading So Far

Dear fellow ETP Traders,

I have been live trading with the ETP System since October 2011. I trade mainly on Gold and I use the 15 minutes time frame to trade the buy and sell sides of this commodity. I have been tweaking the ETP set file to fit the changing market conditions since then until today.

I've decided to show you my FXDD transaction details to show you how I've been doing these past 2 months. As I'm still learning how to adjust the parameters of the ETP set file to suit various market conditions, I have been trading very small lots (ie. usually 0.02 to 0.03 lot size) to remove the emotions of fear and greed from my trades. Besides, I have a day job to attend to thus by trading smaller lots, I am not emotionally attached to check my trades every now and then.

Monthly Statement for May 2012

Monthly Statement for April 2012

Currently, I have adjusted my set file to trade Gold in the 15 minutes time frame with a bias more towards the sell side. I may adjust the parameters to the more bullish side when the Gold price starts turning bullish.


Yours Truly,

Tony Chai

PS. There's no holy grail ETP set file or any trading system in the world that can make money in any market conditions. So in my case, I will develop the discipline to keep monitoring and adjusting the parameters to adapt to changing market conditions.