Galileo Trading Last Week
Posted on October 12, 2008
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Last week was such a historical week that many will remember. Their memories of it will depend on what they were doing. I wanted to create a video so if I ever wonder what I was doing during what was a dramatic week, I can remember.
Part 1 of this video talks about my trades.
Part 2 talks about how Galileo is progressing and looking forward.
Galileo Performance 11 Sat 2008
Posted on October 11, 2008
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Okay, here are my results for the week. It is a messy-looking graph because of the system modifications and the very powerful price movement this week.
To explain the graph:
- Last week, I had a chance to take a look at Galileo 1.0 performance since December 2007.
- I created another system based on Galileo 1.0 called Galileo 2.0.
- The transition between the two systems is Galileo 1.5.
- I traded the FXManager accounts with Galileo 2. 0
- I traded the Signals account with the transitionary system Galileo 1.5. Although I should not have done this. Now, the Signals Trading Account had been disrupted. I should have either continued trading it using Galileo 1.0 or Galileo 2.0 instead of using a transitionary system. Never mind, I did not know how to manage the transition until Wednesday this week. It was too late. But, this must be taken into account when I review the trades a few months from now.
It might not make sense for you, but this is mainly for my future reference when I come back to this.
This week, I will be trading all accounts using Galileo 2. 0.
It was a very volatile week. Looking at the equity curves, the market has moved so strongly in all directions. Although I do not know what would have happened to the SIGNALS TRADING ACCOUNT had I continued to trade it using Galileo 1.0 instead of 1.5. Would it have stabilised the equity curve a little more? I cannot tell.
BOTTOM LINE:
The FXManager (American Eagle USD account) has recouped all its losses and made some headway. It is on track to make 9% pa. The Signals Trading Account is currently losing 1% since Dec 2007. However, it is important to point out that Galileo 1.0 was on target to make 3 to 4% pa. With Galileo 1.5, it lost big. This week the Signals Trading Account will begin trading Galileo 2.0.
Overall, we should be happy. We went through this unscathed. In fact, if we sum up the accounts, we made a tremendous gain. If you read the newspapers and forums, many traders and investors, including banks and entire countries, have put themselves in dire positions during this storm. Like I said in my earlier post this week, its times like these when many get filtered out of the game.
Pakistan pleads for cash to avert bankruptcy
Posted on October 11, 2008
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PAKISTAN has dispatched its senior finance officials on a mission to raise billions of dollars from its closest allies in a last-ditch attempt to avoid bankruptcy…President Asif Ali Zardari warned that the future of the West’s military campaign against the Taliban and Islamist terror groups would be in jeopardy if the money was not forthcoming as a result of the global credit crunch. “I need your help,” he pleaded. “If we fall, if we can’t do it, you can’t do it”- by which he meant the West stood no chance of defeating the militants based along the Pakistan-Afghanistan border.
(Source)
US Consumers Spending Less
Posted on October 11, 2008
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Rising costs of goods and services with the economic crisis is forcing many US consumers to keep their spending in check. (Source)
Iceland’s Krona In Freefall
Posted on October 11, 2008
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ICELAND might be called the first national casualty of the global financial tumult. Its currency, the krona, is in free fall. Foreign exchange markets are effectively closed — for Icelanders who need to travel abroad, dollars or euros are nowhere to be found… The stock market has shut down until next week. The Government has been placed in the role of international beggar, asking Nordic neighbours, the Russians and perhaps the International Monetary Fund for emergency loans.
(Source)
$90 Billion Wipe Out in Aussie Shares
Posted on October 11, 2008
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NOT for more than 20 years have Australian shareholders seen a day as bleak as yesterday, as more than $90 billion was torn out of the sharemarket as crisis meetings of the world’s financial leaders began in Washington.
(Source)
Oil hits year low, sinking below $US80
Posted on October 11, 2008
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Crude oil fell below $US80 for the first time in a year and copper headed for its biggest weekly drop in more than 20 years on concern that the deepening financial crisis will push the global economy into a recession…
`This is a market that is moving on emotion, not the supply and demand picture,’ said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts.”We are looking for a landing place, and I have no idea where it is.’
COMMENT: Because of the economic climate, companies are reducing their activities. This reduces their demand for oil, this reduces the equilibrium price of oil. This is good news for people worried about oil prices. This is also good for the environment because there will be less emissions.
Wild Week To Test Everybody’s Systems
Posted on October 7, 2008
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This week is one of the most volatile weeks I have witnessed since August last year. There is no other chart that can exemplify this than the EURAUD below. This is the daily chart.
As you can see, the price movement over the last few months had been very mellow compared to this week’s violent spike. This type of action is indicative of many currency price action this week. I believe that times like these are moments when everybody’s trading method and psychology are tested to their limits. Trading accounts using flimsy or risky trading systems will be blown out of the water.
Those who have been trading with too big a risk by trading big trades will be experiencing one of two realities at the moment. They will either be wallowing in their gigantic wins or they are drowning in their sorrow and disappointment.
GALILEO 2.0 WILL BE TRADING ALL ACCOUNTS
Posted on October 7, 2008
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I have given it more thought overnight. There is no use providing the Original Galileo Trading Signals to Subscribers when I am trading a different system which I believe to be better, Galileo 2.0, with my investment accounts with FXManager. It does not seem fair to be giving Subscribers a different signal to the one that I am using to trade my money and that of my investors’. Therefore, beginning the end of this week, the FXManager accounts, including the Trading Signals account, and will be trading Galileo 2.0.
Galileo Upgrade: Galileo II
Posted on October 6, 2008
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Last month, I made slight modifications to Galileo and so far, they seemed to have worked for September. However, I am making more modifications.
After trading the Galileo Trading System now for quite a while since my last major edit, December 2007. I have enough trading data to analyse how I can improve the results. Since December, we are on the way of making somewhere around 3 to 4% for the year.
During the weekend, I finally thought it was time to run some analyses on what we have been doing so far. Based on what I saw, I will be making some changes. They are:
- I will continue to trade Galileo, the way it is now using the same trading account I had been using to track its performance: THE SIGNALS TRADING ACCOUNT.
- I have made a slight modification to Galileo. I will be trading this modified version of Galileo as a system I will call Galileo II.
- I will be using Galileo II to trade the following investment accounts:
- American Eagle Trading Account
- Australian Kangaroo Trading Account
- British Bulldog Trading Account
- European Lion Trading Account
If I am correct, Galileo II should improve on the original Galileo. By the end of three months, by end of December 2008, I will have enough data to be sure.




















