There were more than enough signs that the carry trade was unwinding. It happens as it should, it’s a rather vicious cycle, but in the end, it all boils down to money management plus a good understanding of the fundamentals (for me that is).

They should have cut their losses early, plus not to mention that they had at huge positive the month before (16% if Im not mistaken) they should have taken the hit and waited till the curriencies settled down.

After reading their last update about regretting the “possible” profits they had… the only thing that was left in my mind was “Damn these people are greedy.”

Be happy with 1-2%, extremely happy with 3-5%, ecstatic with anything higher than 5%, that’s a hella lot more than what yer bank is giving you.

At least the saga is over.

The reason they traded carry trades and high risks trades recently was the pressure of getting good results in. People didnt allowed them to make any mistakes anymore ..

The program’s downfall was actually the 70% loss due to seizure of funds by the government.(50% loss 20% more loss because they allowed people to withdraw 100% for a while) Since then, they were always running behind the facts. It forced them to trade more aggressively, which eventually killed and finished them off.

I also think they had the best of intentions but their very bad money management was their downfall. The last email where Ken says he has to sell his house is a bit bullshit tough, its just a last attempt to recieve some sympathy from members.

The members lost their capital, Ken and Paul lost their reputation. Time to let this program go and move on.

He is correct when he saids a number of hege funds had to dip into their credit lines to weather this last world economic crisis. A number of programs that were “really” trading also took a pretty big ht. Especially those depending on “carry” trades. This for the most part was easy money up until recently.

NSFG was already shaky and was forced to trade more aggressively to make up for losses incurred earlier last year. I think if they would have just held to their original trading plan, they may have weathered this storm.

On the other hand, client confidence had already been badly damaged following their banking fiasco last year. If they did not perform well, members may have pulled their funds any way.

So, NFSG was between a rock and hard place. Unfortunately, progams in this hip arena live and die by their latest return. People want high returns and they want them now.

I have been trading through this volatile period utilizing a hedged trading strategy that has been working well for me and my clients.

I, like most hedge traders was caught holding a large negative position for most of the month.

Fortunately my hedged pairs have been slowly recovering since mid Aug. and I am currently showing about a 5% return for the month.

Nothing to shout and jump up and down about, but my strategy has allowed me to earn a consistant 3% - 15% monthly for my clients.

I feel bad for Ken and Paul. I think they really did try to run a legitimate program.

Market conditions coupled with a demanding client base unfortunately was the down fall of NSFG.

I wish the best for Paul and Ken.

By the way hyipDiscussion is down again, another DDOS?