UNIVERSITY OF THE WEST INDIES

MONA SCHOOL OF BUSINESS

MBA Part-Time Cohort 13

SBFI6030: International Monetary Economics &

Finance

Group Coursework

Weekly FX Trading Report

Week Ending January 13, 2010

LECTURER: Dr. Lavern McFarlane

DUE DATE: January 13, 2011
GROUP MEMBERS IDs: 99-034322
00-011121
01-009496
620014701
620019181
 INTEROFFICE MEMORANDUM

TO: DR. LAVERN MCFARLANE

FROM: CLASSTRADERS
SUBJECT: WEEKLY TRADING REPORT
DATE: JANUARY 13, 2011
Having agreed to adopt a day trader approach, we commenced trading on Tuesday
January 11, 2011 with an opening position of $100,001.92. We selected the EUR/USD currency
pair based on our assessment that the high volatility in trading between the USD and the Euro
represented an earning opportunity on which we could capitalize.
Using a three month historical analysis of the movement of the Euro, we noted major
downward trends in the value of the EUR/USD. We determined that this was largely influenced
by the current debt crisis impacting countries within the Eurozone. We noted, however, that the
market was beginning to show signs of a retracement. This assertion was supported by a trend
review of four (4) major timeframes (namely: 1 day, 3 hours, 1 hour and 15 minutes).
Based on these projections, we decided to go long (buy) but apply a very conservative
trading strategy as we were new traders. Our first trade was executed at 10:12pm, with a
transaction for the purchase of 1 unit Euro at a rate of 1.3004. We also established a profit limit
of 1.30504; and a trailing stop of 32.7.
While the Euro rebounded as projected, the natural market variation activated our trading
stop before we were able to realize a profit on the trade.
Using the same currency pair, a second trade was done on Wednesday January 12, 2011
at 10:39pm, based on our assessment that the market had completed the anticipated retracement
and would therefore be moving downward. As such, a market order was placed to sell 10,000
units EUR/USD, with profit limit of 1.29502. Given our learning from the previous trade, we
decided against the use of a trailing stop, and instead used a stop loss of 1.31658.
This trade resulted in a loss of 63.01 as the Euro continued to show signs of
strengthening; which may be attributed to the sudden announcement of Germany’s decision to
provide support to the waning Euro.
Our closing market position is currently $99,939.33.