# closed winning trades : 4

# closed losing trades : 6

 Net monthly profit % :  +8.5%

Net monthly profit ($) : $2,049

Current drawdown : 0.8%

Last equity peak date : January 23, 2006

 Due to the rules in my system that keep it out of the market near economic events that have historically produced whipsaw volatility, the system will be out of the market for the rest of the month.  It will begin prowling for trades again on February 2nd, after the monthly unemployment figures.  That’s nearly a whole week, so I guess I’m on vacation!

January’s results are positive, but lower than the results seen in November and December of 2006.  The platform glitch that I experienced on the day that the Bank of England raised rates is primarily responsible for the decreased performance.  Were it not for this glitch, which caused a delayed entry and had cascading effects on the rest of that week’s trading, the system would have booked a 20.5% gain in January.  From that standpoint then, the results are comparable to November and December.

From a conventional viewpoint, where an investor buys and holds a stock index fund and hopes to achieve 8 to 10 percent return on equity per year, the results of my system are outstanding.  Of course, this return is not without the price paid with increased risk and volatility.  Imagine an aggressive growth mutual fund that routinely sees 20%+ price appreciation and 20%+ equity drawdowns…this forex system experiences the same kinds of ups and downs in within the span of days.  Don’t try this at home unless you know from experience what you’ll do when you lose 20%, 50% or 100% of your risk capital!