Q: I wanted to ask in this regard whether we are holding any significant Bitcoin positions, as it is the one asset that continues to perform very well and my friends in the crypto space, some of whom are extremely knowledgeable have confirmed the extremely bullish outlook for this asset.
A: We’ve been in and out of Bitcoin on a regular basis for some time. I think it was the last update in which I mentioned that as it started making the big correction a couple weeks ago, we were able to close our positions at a profit. I also showed the parabolic move on the weekly chart and compared that chart to Ethereum with the possibility that ETH would follow BTC. It hasn’t done so exactly in the same time frame as of yet, but that doesn’t rule anything out and we’re watching ETH closely as well
Q: Can I request that my investment be put into BTC at this time, of course with a reasonable stop-loss to manage risk. It just looks like BTC will continue to decouple from stocks and gold and I feel we should profit greatly from that.
A: I can understand and appreciate the desire to do that. We’ve discussed this on the zoom call recently. This is clearly a classic case of ‘could’a, would’a, should’a had any of us had a crystal ball last year. Bear in mind though the structure of the trusts and what we are doing. Each member has committed funds to a trust which is a contract. It is managed with fiduciary duty by the trustee(s) to serve the purposes of the trust. This is different from a ‘demand account’ like checking or savings where you have total control of the account and can make any movements you like. Here the trustee is obligated to do whatever is reasonable and possible to meet the goals of the trust for the benefit of the certificate unit holders. The key feature for asset protection purposes is that the trustee is responsible and the cert unit holders, or other functionaries (manager, agent, etc) are not responsible and thus cannot be held liable by the outside world. So the trustee is managing its own (trust) funds in blocks. As we’ve discussed several times over the months, distributions will be declared when there is sufficient equity to do so in relation to the targets set. The distributions will apply equally pro-rata to each trust. We cannot handle individual requests for funds being traded in this block. I hope that clarifies a little bit.
Q: Can I request withdrawals or make other requests?
A: See reply above.
Q: What else can I do with my trust and how can I use it?
A: Great question. Regarding the Gold Package International Business Trust: What else do you want to do with it? You can create a diversified portfolio and use other funds to diversify. i.e. buy gold or precious metals, real estate, business interests, use it as a holding company to hold other trusts with other assets i.e. home, business, vehicles, valuable equipment, virtually anything you can do with a company you can do with the Gold Package trust.
The Silver Package trust is a streamlined version of the Gold and is intended only for use in the trading program and to hold the assets for that purpose. It is a single use trust arrangement.
Q: We started April/May of last year focusing on the oil trade. Why or how did we get away from that? It was doing so well.
A: Yes it was and so were we! Price leveled off around $40 mid June of last year and the ‘so called’ pandemic took its toll on global economies which dampened demand and also the price recovery. This flat line lasted from June until November. During this time is when we started looking for other opportunities in other markets to compensate. In December (usually not a good month for trading) price started to climb again and is now around $60 which was one of our original targets if you recall.
Q: Please give us an idea of the trading strategy being used.
A: The original oil trade strategy was more of a swing trading style which is to accumulate positions and let them ride as the trend continues. When we were forced out of this mode we did get into more of a day trading scenario looking for shorter term opportunities in different markets still with some swing trades that we had anticipated would roll out of the red and into the green for us. Our current position in Gold is an example. The market moves in waves and cycles and trading is all about timing those cycles. If you look at a daily gold chart XAU/USD you’ll see that gold has not rolled out of its downward trend and has broken that normal cycle with a continual descent. This is blocking much of our available equity right now.
So with less available equity, we have to be very selective on the trades we take and make them count so here’s the strategy at this point;
We’ll be focused primarily on BTC, ETH and our Gold position.
BTC: Looking at the historical ‘post halfing’ cycles, some call them ‘Super Cycles’, and with that in combination with the fact that major corporations, banks and institutions are now adding BTC to their treasuries in large amounts, (i.e. Telsa bought something like $1.5 Billion here recently) BTC is in for another parabolic move and we’re looking to take advantage of it. Bear in mind that we are seeing historic volatility in all markets so we have to take a conservative approach. If not, we could get damaged severely with another 30% retracement if we’re not careful.
So to manage the risk we’re starting out with smaller positions as BTC breaks through the next level of resistance and our indicators gives us a green light. We will layer in more and more positions on the move up (assuming that’s the direction). As the lower level positions show profit we’ll use the equity of those profits to add more positions at key levels and keep leveraging the profits in that way. Should there be a pullback (and there will be) the profits from the lower positions will help float the higher level positions if they go negative for a time.
ETH: Seems to be on a similar path with the same upside potential and we’ll be doing much the same.
XAU/USD: Here, we’re looking for a bottom and a trend reversal. Gold will have to get back into a previous channel and break through resistance to give us confirmation that the current downward trend is over, at least for the time being. The upper level longs are hedged right now with lower level shorts and this has helped a lot with the continued downtrend we’ve been experiencing.
If we can catch the bottom and see confirmations of a potential trend reversal (there are initial indications right now) We can close some or all of the shorts at a very nice profit and give some thought to adding some longs at the bottom. If the trend continues up these longs will show profit and the negative equity from our upper level longs which are upside down right now will shrink as the market rises giving us a double bonus on recovering the equity we’ve had locked up for so long.
Q: You often mention ‘we’ when you talk about the trading. Who are ‘we’?
A: I have an account rep on the platform I trade from and he has an entire analytical team at his disposal which he uses to bring me trading ideas and technical analysis and we talk almost daily during the week to discuss strategy. I also use several other highly professional and successful technical teams to which I have VIP access which I review and get regular input from. You hear from and see ‘me', and I manage the trades, but behind me I have quite a team working to give valuable input. It might not look that way to some at times, but anyway, that’s who ‘we’ are. :-)
Q: You have several other commitments and projects which could be distracting your attention away from the trading activity. Are you able to give this the proper attention?
A: Great and proper question. Here’s how a typical day shapes up. I get up at 7:30 AM EST which is an hour and a half before the US session opens. This gives me time to review the calendar of events and announcements, reports, economic indicators etc. while I have my coffee. I review what happened overnight. I usually spend an hour live with one of my technical teams reviewing possible set-ups and trigger points reviewing the charts. Jason (my account rep) sends me his thoughts and ideas and we talk when needed. I then spend the next several hours in the morning scanning the charts for priority opportunities and all others. I start looking at the daily charts, then focus in on the 8 hour, 4 hour and 1 hour charts to look at timing for apparent opportunities. This takes most of the morning. I do everything else I need to do between noon and 9:00 PM. During that time I’m usually checking in at intervals to monitor the markets and positions. I have live prices on my cell phone and I check regularly through the day. I usually check markets again in the evening before going to bed and when necessary Jason calls me from the UK to my cell phone to get me out of bed (he’s working the European session when I’m usually asleep at night) to tend to the necessary when the account or opportunities require attention. I personally monitor the US session (daytime) and early Asian sessions (evening). So I’m basically on 24 hour call to tend to things.
Bottom line, ‘No’ my other activities don’t interfere but that’s a very good and reasonable question!
Personal thoughts:
As I see what’s going on around the world it’s easy to see that God is testing our patience and with it, our faith. You can see it in the so-called ‘pandemic’ related challenges. People are fed up with it all. You can see it in the US election fiasco. You can see it in the economy, and alas, we’re being taught patience in a very painful but hopefully meaningful and effective way here with our project.
I don’t know about you, but I use this opportunity as we are waiting for things to turn back in our favor, to pray hard for so many things in addition to this project. But knowing what this project means to not only you and me but to so many others who will be blessed secondarily by its success leads me to the point that despite our challenges and tests, I become ever more determined and convinced that success is our only destiny. The only question is ‘when’ and ‘how long’ will we be tested?
I know God has a plan for us and it’s more wonderful than we can imagine. Whatever comes, keep that big picture in mind. Be of good cheer, be thankful for what we have and increase in your faith! Good things are coming if we can persevere!
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