Crimson Lotus Dragon 1 Hundred Million Yen Challenge Day 3 ― With continued gold decline, selling is favored; unrealized losses widen but the pace of stop-losses slows down
The "100 Million Yen→1 Billion Yen Challenge" has entered Day 3. On Day 2, due to a sharp reversal of the yen, gold swung widely within a single day, and I reported a realization profit of -40,683 yen in a phase of “steadily losing,” but Day 3 shows a different face again. Today I will review that price movement.
From the night of Day 2 to the morning of Day 3, gold moved from the $4,436 range to the $4,347 range, continuing to drift downward. A drop of nearly $90 within about a day and a half. In a week with little fundamental data ahead for Thursday’s PPI and Friday’s CPI (both for August), the previous day’s directionless movement has flipped to a clearly downward price action.
With the market priced in about a 60% chance of a September rate hike by the Fed and a tug-of-war with a softer dollar continuing, downward pressure has become slightly more favorable here.
Currently holding 2 buy positions (average entry 4,365.00) and 3 sell positions (average entry 4,349.90), totaling 5 positions with an unrealized loss of -19,255 yen. Today's realized profit is -10,185 yen, and the account balance has recovered to 978,499 yen.
Day 2 had 2 buys and 9 sells (11 positions in total), but today has been pared down to 5 positions. While some buy-side positions hit stop-loss in the continued downtrend, many of the overly large short positions were closed as well. The day’s realized loss of -10,185 yen is smaller than Day 2’s -40,683 yen, indicating the stop-loss pace has slowed. Even as the market continues to decline, the current price is sometimes below the average short-entry price (4,349.90), so unrealized losses remain.
On Day 1 (9/7) realized profit was -1,878 yen, Day 2 (9/8) realized profit was -40,683 yen, and so far the trend has been negative. Nonetheless, the account balance has grown from the starting 1,000,000 yen to 978,499 yen, rebounding somewhat from 957,365 yen at the end of Day 2. Reaching 100 million yen is still very early in the journey, and there will be days of gains and days of losses as this obvious reality continues to accumulate.
The real-time movement of account balance and unrealized P/L can be watched on YouTube Live.
※This article is provided for information purposes and is not investment solicitation. The results shown are past performance and do not guarantee future profits. FX/CFD trading involves risk. Please make investment decisions at your own risk.