I am still long, 3 progressively increasing scale-ins by now. As so often the case (!), leaving an existing order (1.12) intact would have been the slightly better thing to do, entry price-wise. Given my moderate sizing, combined with my having the best month ever, by far (up 45.6%), since managing OPM for nearly a year, CAD would have to strengthen against USD a lot more before I begin to feel serious heat. A sufficient retracement to exit at a modest profit is highly likely before then.
Also, I've been long CAD/JPY (a historically strong proxy for the price of crude oil, of course) at larger size than normal for the last week. That has been providing a nice hedge, offsetting a portion of the drawdown from the long USD/CAD position. As long as you believe than we'll see $85+ oil sooner than we might've thought just a few weeks ago, CAD/JPY is still a longer-term buy at these levels, with really attractive risk/reward and positive carry to boot.
Also, I've been long CAD/JPY (a historically strong proxy for the price of crude oil, of course) at larger size than normal for the last week. That has been providing a nice hedge, offsetting a portion of the drawdown from the long USD/CAD position. As long as you believe than we'll see $85+ oil sooner than we might've thought just a few weeks ago, CAD/JPY is still a longer-term buy at these levels, with really attractive risk/reward and positive carry to boot.
