This is an update on the performance of the Chinese Yuan Carry Trade Basket. The experiment was started with a base of $100,000 on March 20, 2007. I have included the performance figures for both of the experiments that I have been running, although they are the same in composition, I have leveraged them differently.
Since Inception (5 times leveraged basket):
Increase (decrease) in Account Balance: $9,569.53
Increase (decrease) in Unrealized Gains: $18,364.90
Increase (decrease) in Net Asset Value: $27,934.43
Total Portfolio Value: $127,934.43 +27.93%
Since Inception (10 times leveraged basket):
Increase (decrease) in Account Balance: $19,139.05
Increase (decrease) in Unrealized Gains: $36,729.80
Increase (decrease) in Net Asset Value: $55,868.85
Total Portfolio Value: $155,868.85 +55.87%
The Chinese Yuan Carry Trade Basket has been traded for over three months and has given an investor an annualized return of 97.09% and 194.20% respectively. While past performance is not necessarily a good predictor of future performance, the basket has provided consistent returns in an otherwise volatile currency markets. While the goal of the basket is not to generate unrealized gains, the positive unrealized gain has provided a nice cushion for the investor to extract value from the positive currency movement.
Please check back for further updates at a later time. I would appreciate any suggestions on improving the strategy.
Technorati Tags: Chinese Yuan, Currency, FOREX, USD, GBP, EUR, TRY, Trading, Investing
