Dankel Management - Low trading activity

Dear Client,

In response to the recent ‘financial-crisis’ and the subsequent volatility in the forex market, we have 
reduced trade sizes and decreased the frequency of trades. 

Present market conditions were proving detrimental to our trading approach. We still feel confident in 
the long-run viability of the strategy we had implemented, however in the short-term, we cannot 
afford to take unwarranted risks during this exceptional period.

The approach being used is fundamentally based, however market responses to fundamental 
economic reports have been more haphazard than even just a few months ago. We believe the 
markets need some time to ‘cool-down’. At the time of writing this message, the DOWJIA seemed to 
be falling over a precipice (again), a fall below a key resistance level of 7,500 (its lowest point in six 
years) would confirm further downside potential, and the headline on Reuters.com reads 
“Nationalization fears sink bank shares” (referring to banks in the USA). Market movement is currently 
being dictated mainly by fear, as can be seen by gold rising again to $1,000USD. The forex market does 
provide opportunity either way the market trends, however, it is the increased volatility that is a bit 
more difficult to wrestle with.  

We do not believe we need to abandon our previous logic, however it would be prudent of us to 
preserve capital until more familiar market movement transpires. Exposing accounts under 
management to undue risk just for the sake of higher performance could yield unacceptable losses at 
this time. 

Having said this, we realize that exceptional periods are a ‘part of trading’ in any market, and we are 
therefore looking into implementing an approach that would likely take advantage of a more volatile 
period. 

We expect to increase trading activity to normal levels by mid-April 2009.

Best Regards,

Daniel Marr

Ps:  As usual, you should feel free to allocate or de-allocate during this period. We ask that allocations 
or de-allocations are requested over weekends. Remember to email us after placing a request on 
FXManager Client platform.