T Squared Trading LLC Currency Trading/Mercado de Divisas

[T Squared Trading]

Good Evening All,

I have received emails from quite a few of you in regards to our positions this evening. We are still in the midst of a small drawdown in a few of our strategies....obviously with proper risk management and position sizing, it's fine.....it's all part of the big picture. One reversal in the dollar/yen to the long side in the early afternoon around the whole number.

I will update positions in the morning. Thanks for your patience.

T2

[T Squared Trading]

Good Afternoon/Good Evening,

We have received several emails in reference to the general idea of how our strategies “work.” I wanted to teach you quickly how one of our strategies operates and a quick update on our strategies biases as of 2pm ET.

How one of our strategies operates
In the chart attachment you will see a 1 year equity chart generated from our Euro Ace individual strategy. You will notice that the profitable trades occur in clusters and form a 75-90 degree angle. The drawdowns or losing trades are much less extreme and form a 45 degree angle or less for the most part. This is an illustration of why it’s important to execute every trade that an efficient system produces. It also display why the design of the strategy along with proper risk management and position sizing are so important. As a trader, you don’t know when the profits or losses are going to occur, only that percentages show over time that the profits will be in greater number than the losses

Strategy Suite 1
The strategies contained in our Strategy Suite 1 are all showing a short dollar bias. The swiss and yen both were stopped out this am, and switched to a negative dollar bias in the range of .2310-.2320 and 114.65-114.75, respectively. The 2 Euro strategies in the Suite have been long since this pair was in the mid .2600’s of last week.

Indvidual Strategies
Our G5 has been short the dollar since the .2770-.2780 range and still has not closed the position. The Extreme was stopped out in the mid .2500’s this am and is now dollar short. Our very sensitive Euro Speed produced its first trade since the middle of last week, and made a nice profit on a dollar long position this morning. Choppy activity continues

As always, feel free to ask any questions, and thank you for your continued support.

T2
www.tsquaredtrading.com

[T Squared Trading]

Good Evening,

I was asked a question in another forum I have an active thread on a question about the chart I posted earlier. The question was basically if he invested 25K at the first equity high, would it have turned into 140K, this was my response:

When a client decides to lease one of our strategies, we “hold their hand,” every step of the way…before opening an account and during the actual trading process. What I mean by that, is we assist them in monitoring their position sizing and risk management as their account size increases or decreases. We feel we owe it to the client to be as concerned for preservation of wealth as they are. It’s all part of the personalized service we offer each client, regardless of account size.

With that said, to trade this system at the position size that would allow you to make the $ amount return (I did not say %) displayed, you would need to have considerably more than 25K to properly manage the drawdowns.

Thanks,
T2

[T Squared Trading]

Daily Commentary for June 20th, 2006

Good Monday Evening/Tuesday Morning,

Boring!!!
The absence of any major economic news rendered the currency market pretty tame today. There is going to be some key US housing numbers along with unemployment data later this week, but that is essentially it. Obviously, all eyes seem to be on the US Fed next week in regards to the decision on interest rates. Crude oil dropped near a dollar to right around $69.00 in trading. Overall, it was a good day to leave work early to go watch Spain beat up on Tunisia.

Technical Analysis
As usual, we don’t utilize technical analysis in our strategy design, but feel it is necessary to inform our clients on certain key levels.
Eur/Usd
On a weekly basis it seems to be still mired in the head and shoulders pattern. Look carefully at the trades in the .2500 range if that area is tested again. Most likely some more consolidation before picking a direction
Usd/Jpy
On a daily chart, look for the 116 area to produce some resistance. It will be interesting to see if a quick reversal occurs or some much needed consolidation
Usd/Chf
Look for support at 1.2300, and resistance in the 1.2470 range. A nice little trading range should be present for some good short term trades.

What Our Strategies Are Telling Us
The 4 strategies contained in our Strategy Suite 1, are split down the middle in terms of dollar biased. All of our strategies are algorithm-based and look for different factors in determining buy/sell.
Yen Optimizer-short since 114.60-.80
Euro Mega-short since .2640-.2460
Swiss XL-Long since .2320-.2340
Euro Tiburon- Long since .2640-.2660

Our individual strategies are showing a mixed bag as well:
G5 Euro-Long since .2570-.2590
Extreme Euro-Short since .2590-.2610
Euro Ace-Long since .2640-.2660
And our two newest yen strategies are currently flat.

If you would like our commentary to be emailed to you roughly 12 hours before it is released to the public, please enroll in our complimentary subscriber list. Also, look for some of our strategies being tracked in real time at the Signals Tracker section on FXStreet.

Thank You,
T2

[T Squared Trading]

Daily Commentary for June 21st, 2006

Good Tuesday Evening/Wednesday Morning,

New Home Surprise
The US economy received some welcomed surprising news with stronger than expected rise in new home construction. This news fuels the optimism that even though you need to take out a loan to fuel your Jeep Cherokee, and you’re going to pay an ever increasing rate to borrow that money, that somehow the US economy is in good shape. A barrel of oil is going to cost around 68.64, down a few cents from yesterday’s close. The smart money is suggesting there is some stability being exhibited in the energy market. As I noted in my commentary last evening, common sense would indicate that the market is holding their collective breath waiting for the decision on interest rates next week.

Technical Indicators
Eur/Usd
This cross behaved like a rubber band today, dropping as low as .2537, and as high as .2617 before coming back to rest near the starting point of the day at .2580. Support is still seen around .2530, and resistance around .2650
Usd/Jpy
This cross never really recovered from a near 80 pip drop in the early morning hours, before settling in the 114.90 range. Look for near term resistance at 116, and support near 114. There should be a nice 200 pip trading range from which to make some nice trades.
Usd/Chf
The dollar weakened against the Swiss franc, as well, dropping to an inter-session low of .2343. Resistance is shown around .2490, and support is around .2325.

What Our Strategies Are Telling Us as of 6/20, 10PM ET:
Strategy Suite 1
Yen Optimizer-$ Short
Euro Mega- $ Long
Swiss XL- $ Long
Euro Tiburon-$ Short
Individual Strategies
G5 Euro- $ Short
Extreme Euro-$ Long
Euro Speed- Flat
Euro Ace- $ Short
Vital Yen- $ Long
The Notorious Yen- $ Long

Thank You for your continued support, and keep track of our progress on fxstreet.com Signal Tracker, along with the equity charts on our website.

T2
www.tsquaredtrading.com

[T Squared Trading]

Daily Commentary for June 22nd, 2006

Good Wednesday Evening/Thursday Morning,

Trichet Speaks & You Thought Your Day At Work Was Bad?
European Central Bank President Jean Claude Trichet added some fuel to the Euro rally the past few sessions. Trichet addressed the European Parliament in Brussels, and stated in so many words, the central bank is as mad as heck about the level of inflation in the region, and is not taking it any more. In terms of US data, other than the Fed decision next week, the next key piece of economic data is the durable good orders report on Friday. In unrelated news, there was a terrible piece of news out of Canada today. An employee at a plastic’s company accidentally “flipped the wrong switch,” and cost the company an estimated $11 million. A spokesman for the company said they are unsure how the employee will be reprimanded. I think if I was the CEO of that company, I would be able to think of quite a few ways to reprimand someone who just cost me $11 million.

Technical Indicators
Eur/Usd
This pair had a nice rally today. We see resistance at around .2700, and support in the .2470 range.
Usd/Jpy
Pretty tame session today. 115.85 resistance, and 114.15 support.
Usd/Chf
Support at .2260, resistance at .2520.

What Our Strategies Are Telling Us as of 6/21, 10PM ET:
Strategy Suite 1
Yen Optimizer- Stop Loss from yesterday short $ position, currently $ Long
Euro Mega- $ Long
Swiss XL- $ Long
Euro Tiburon-$ Short
Individual Strategies
G5 Euro- Flat
Extreme Euro-$ Long
Euro Speed- $ Long
Euro Ace- $ Short
Vital Yen- $ Long
The Notorious Yen- Stop Loss from yesterday’s short $ position, currently $ Long

Thank you for your continued support, and keep track of our progress on fxstreet.com Signal Tracker, along with the equity charts on our website. If you would like to receive our commentary before it is released to the public for free in PDF, please send us an email, and we will gladly include you on the subscribers list.

T2
www.tsquaredtrading.com

[T Squared Trading]

Daily Commentary for June 23rd, 2006

Good Thursday Evening/Friday Morning,

The Dollar Flexes Its Muscles
The US Dollar ignored some weak data today to make strong gains in many of the major pairs today. Most of the so-called experts claim the rally was driven by technical indicators, as there was a lack of good news today to cause such a rise. Fortunately for our clients, we were long the dollar in a majority of our strategies, and thus they were able to make some nice profits. As we have said in the past, our strategies are designed from proprietary algorithms; we do not utilize technical indicators. I was reading an interview in one of the popular financial magazines this month. They were interviewing a trader, who basically stated that algorithm based strategies do not work, because the market is driven by human emotion. Apparently this trader is confused, because that is one of the reasons why algorithms DO work. If you’re able to mathematically quantify the behavior of a set(s) of people, for a given time, you will have a better chance of accurately predicting the future behavior of those people. All major companies do this, from their product development to their marketing efforts…..we do the same with our strategies.

Technical Indicators
Eur/Usd
The major number in this pair is 1.2250. That is the support level that many technicians are pointing to.
Usd/Jpy
Exciting session today as the dollar gained on the yen by about 120 pips. Watch how this pair behaves in the 116.30 region, as that appears to be the next level of resistance.
Usd/Chf
.2570 appears to be the next major resistance level, as the .2520 level we pointed out yesterday appears to have been breached. It wasn’t a violent move through .2520, so perhaps this level may stick after all.

What Our Strategies Are Telling Us as of 6/22, 10PM ET:
We have 10 strategies that we will report to our clients on a daily basis in regards to their respective dollar bias. Our intent is not to provide investment advice to those who read this following section. We are merely reporting the biases that our strategies are exhibiting.

Eur/Usd
$ Long Bias
Usd/Jpy
$ Long Bias
Usd/Chf
$ Long Bias

We are finding the market moves have been much more “fluid,” as of late, as opposed to the choppy activity that has been evident in the market the past few weeks. Our strategy subscribers are reaping the benefits of these moves.


Thank you for your continued support, and keep track of our strategy progress at: http://www.fxstreet.com/nou/content/...p?menu=tracker , along with the equity charts on our website. If you would like to receive our commentary before it is released to the public for free in PDF format, please send us your e-mail, and we will gladly include you on the subscribers list.

T2
www.tsquaredtrading.com

[T Squared Trading]

Dear Forum Members,

Our technical support team has been brought to our attention that our email address along with thousands of others has been “faked,” to send out the Netsky virus. According to Mcafee, Norton, and Symantec, and our personal experience, the virus is usually sent with a message titled Important Notice, Important, Urgent, etc, and has been in existence for over 2 years. The attachment usually is in a .zip format. Apparently, it’s fairly easy for someone to do something like this. All the virus needs to infect is one computer, and it gets access to all email addresses in there address book, and then continues to replicate.

If you, or anyone you know, has been a victim of this sort of forgery, or host a website of any kind, please view this site: http://www.openspf.org/users.html. I would strongly suggest you have your web-hosting company change the reporting on your SPF to protect your account.

T Squared Trading LLC, NEVER sends attachments of any kind. The only attachment that is sent, is to our complimentary market commentary subscribers, which is in PDF format.

If you have received any unsolicited emails from T Squared Trading of any kind, please bring it to our attention, either on this forum or via email.

Thank you for your time, and continued support,

T2
www.tsquaredtrading.com

[T Squared Trading]

Hello Everyone,

My technical support team has actually done a follow up, on the e-mail issue I posted earlier. We were able to do a follow up not only on an e-mail we received, supposedly sent BY US, but other emails that were received by other senders. They all had the Subject: Important, and contained .zip files.

Every email was traced back to the same IP address: 80.191.215.67. The e-mail is traced back to an individual located in Iran.

Anyhow, that's what we've uncovered. Look for a mid-day signal bias commentary from us in a bit.

Thanks for the continued support.

T2
www.tsquaredtrading.com

[T Squared Trading]

Daily Commentary for June 27th, 2006

Good Monday Evening/Tuesday Morning,

Strong US Housing Supports Fed Hike And Buffet Gives Back
The US dollar weakened today despite strong housing numbers that point to what seems like a 100th straight rate hike on Thursday. Some of the Forex experts believe this is just some consolidation before the mighty dollar soars again, perhaps later this week. Today’s action in the energy market will make you rethink the purchase of that new Ford Expedition you have had your heart set on. Crude Oil shot up 1.4% to $71.85 a barrel…..ouch if you use gas, wonderful if you were long Crude Oil. Warren Buffett made a pretty sizeable contribution to the fund started by Bill Gates and his wife Melinda. He wrote a check for close to all of his $44 billion. Mr. Buffett made a statement saying it was harder finding a cause to give his money away to, than to earn it in the first place. Personally speaking, if I had $44 billion dollars of liquid cash, sitting in a bank, I would first throw one final helluva’ party, then give a good portion to a deserving charity. Seriously, though, cheers to Mr. Buffett and his philanthropic gesture.

Technical Indicators
Eur/Usd
This pair had a nice 100 pip trading range, on which to make some nice money to pay for gas. Traders seem to think the bounce off the 1.2500 figure, was just temporary and will be back to test that level shortly. On the topside 1.2650-.2700 appears to be the resistance point.
Usd/Jpy
The possible resignation of Bank of Japan Governor Fukui is the primary driver in this pair. The board wants to see him stay, and the public wants to see him go. Watch for some nice moves in both direction as a result. 115.50 is a key level on the downside to watch
Usd/Chf
Swiss retail sales appeared to be the catalyst for the CHF strength today. Look for temporary support in the .2380-.2390 range.

What Our Strategies Are Telling Us as of 6/26, 10PM ET:
We have 10 strategies that we will report to our clients on a daily basis in regards to their respective dollar bias. Our intent is not to provide investment advice to those who read this following section. We are merely reporting the biases that our strategies are exhibiting.

Eur/Usd
$ Short Bias
Usd/Jpy
$ Short Bias
Usd/Chf
$ Short Bias

As you can plainly see here our strategies are not to fond of the dollar as of late. I must point out though, about 1/3 of our strategies have no position. That might point to some overall uncertainty, but obviously there is a negative dollar bias being exhibited by those participating.


Thank you for your continued support, and keep track of our strategy progress at: http://www.fxstreet.com/nou/content/...p?menu=tracker , along with the equity charts and real-money profit and loss report on our website. If you would like to receive our commentary before it is released to the public for free in PDF format, please send us your e-mail, and we will gladly include you on the subscribers list.

T2
www.tsquaredtrading.com