Month to date results for January 2008: 

# winning trades (CG/ER) : 0/0

# losing trades (CG/ER) : 3/0

CG Return: -34.0%

Hedge (ER) Return: 0% (inactive)

Current Allocation (CG/ER): 66% / 34%

Total Return Month to Date: -25.5% 

Performance Chart is Here

Ouch!  So have I mentioned before that my gearing would make Jesse Livermore flinch?  Three quick, maximum loss trades have hit the Cable Glider in a span of less than 48 hours.  It’s amazing how a benign looking little period of choppy consolidation prior to the Bank of England meeting tomorrow morning has really got me in a deep hole right out of the gate for 2008.  This is my 4th worst week in percentage loss terms, and my worst in absolute dollar terms.  The other drops of this magnitude occurred in February 2007 and May 2007, before I had instituted a cash hedge. 

Since I have not taken a hit like this in a while, I am feeling a bit stunned.  As I look at my account, it is back to levels not seen since last July.  Keep in mind that a significant portion of my profits has gone to pay for living expenses, and the smaller my equity base, the harder it is for me to generate enough profits to cover living expenses AND grow the account.

What’s next?  The usual!  Follow the plan and try not to worry…I know that trading my systems is not dangerous per se, but with my level of gearing, I leave myself open for repeated punches to the gut like this.  I hope for a quick recovery, but that is for the market to decide…I’m on the sidelines until next week.