GalleonFX Is Back In Action

Greetings. I appears that after that beating they took last year, GalleonFX have gotten up, dusted themselves, and are ready to being trading again. Personally I am not ready to trust them again so I won’t be reopening my account with them. Of course though I’m not telling you what to do – make up  your own mind. Anyways, here an the e-mail news release from GalleonFX staff:

As we entered the summer months of 2008 and the currency markets became increasingly unusual from previous years of live trading, as well as different from situations we have back tested on Galleon’s trading systems, it was becoming increasingly difficult to steer a safe course through the impending storm.

As a few back to back negative trading months came upon us, and sensing a crazy turn in the currency markets in the fall of 08, we chose to play it safe, and stop trading client accounts in August 2008 to protect the majority of client equity while we watched the drama unfold from the sidelines.

And sure enough the banking crisis of Oct 2008 unfolded itself upon the financial world like tsunami. The world financial indexes, along with the world commodities and world currencies, fell like a rock 25-50% from August to the end of year, wiping out all the gains these markets had made since 2003. Other unusual situations arose as we watched positive overnight interest on open FX positions turn negative. Normally interest is usually paid to FX traders holding overnight positions on long trades against the Dollar, Franc, and Yen, but these traditional interest bearing trades (“carry trades”) became negative as banks tried to hedge their own risk when the currency markets became more volatile than ever before. Banks and brokers also widened their spreads considerably on all the pairs to further offset their risk, and so traders were faced with the double handicap of negative overnight interest and increased spread, not to mention the crazy volatility and unexpected fall of all the markets.

Over the next 4 months we have conducted a greater analysis of the last 10 years of market conditions, including the last year, in order to see what could be improved, created, discarded for inclusion in a far stronger managed fund. The result of our research is a more powerful and evolved fund that we now call Golden Hind-FX. It produces greater returns with lower risk than any previous system we had developed. Back testing for 2008 shows all positive months. Live forward testing shows very encouraging results as well with Golden Hind-FX now having 2 months of live trading with our own company funds.

From our research, back testing and live trading we have completed to this point, we now feel confident to commence trading for our current clients and open the fund to new clients starting in February 2009. If you are interested in learning more about the specifics of what makes the Golden Hind-FX system so powerful and unique you can find more details on our website.

New clients must follow the account opening procedures as outlined on the GalleonFX website.

Clients that had actively trading accounts at the time we stopped trading need do nothing if you want trading to continue again. If you wish to not have trading reactivated on your account or wish to withdraw funds you must contact www.fxcm.com directly to arrange for withdrawal or transfer of funds. Current clients with funded accounts wishing to NOT trade again can speed the movement of funds OUT of their trading account by using this transfer form provided by FXCM. ( http://www.fxcm.com/docs_pdfs/transfer_form.pdf)

IMPORTANT

Bear in mind that if your previous GalleonFX managed account had been in a draw down, it is in your best interest to maintain the same account and account number. This way you will not be charged performance fees until your account reaches net NEW highs and all losses are recovered.

If we were to have people open new accounts or transfer funds into another master trading account previous clients would not have this opportunity to recover from such their own draw down with no additional fees.

For all the reasons stated above, we are reinstating trading on all client trading accounts that still have funds and are under an active LPOA. If as a client, you have not revoked the Limited Power of Attorney which authorized Galleon to trade your account and want to continue trading, you need do nothing. Your account will continue trading again in February.

For those that transferred funds or requested FXCM stop trading the account, or closed your account, you will have to contact Galleon or FXCM to work out the details.

Though some economic forecasts do not paint a rosy picture for 2009, finding the right opportunities in forex can put you on top. We believe Galleon’s new Golden Hind-FX fund will be the place to be in 2009. We encourage you to read more about this new fund and get involved now.

Kind Regards,

Galleon Staff