12/26/2007

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

1.2%	1.8%	0.2%	10.2%	37.7%

2007 Review

Here is a review of 2007 trading results:

Jan 2007: 5.6%
Feb 2007: 2.4%
Mar 2007: -15.0%
Apr 2007: 9.8%
May 2007: 5.8%
Jun 2007: 4.9%
Jul 2007: 10.0%
Aug 2007: -35.0%
Sep 2007: 12.0%
Oct 2007: 1.8%
Nov 2007: 9.4%
Dec 2007: 13.4%

Simple Average Total: 25.1%
Exponential Average Total: 13.3%


The index gambling trading started as usual this year. However,
the market soon had a very large single day drop on 2/28. This has
directly caused the 15% loss in March. It took two months (Apr & May)
to get back what had been lost in one (March).

Trading during the next two months (Jun & Jul) were relatively quiet. But the
market turned extremely volatile in August when the sub-prime mortgage
explosion rattled the whole market. As the credit market liquidity
disappeared, it has eventually triggered the stock market panic on 08/16.
August trading ended with an unprecedented loss of 35%.

Although the stock market zigzagged during the rest of the year, the
trading was relatively stable, largely due to very tight risk control. The
year of 2007 eventually ended with a profit.

Jan 2008 Positions

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

1.1%	1.3%	0.0%	5.2%	22.6%

Maintaining profit potential during low volatility is hard.

Keep a close eye on 99% VAR...

December 2007 Result

December 2007: 13.4%

12/03/2007

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

7.4%	2.5%	0.3%	13.8%	53.3%

11/19/2007

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

-0.1%	4.4%	7.1%	34.3%	81.0%

November 2007 Result

Nov 2007: 9.4%

10/22/2007

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

0.8%	4.8%	7.0%	35.6%	82.8%

October 2007 Result

October 2007 Result: 1.8%

The last trading day's 40 pts drop has caused some loss. Nevertheless, the position
is not heavy, the risk is contained.

Big losses always come from panic. Just need to keep a close eye on the risks to
avoid panic.

10/4/2007

G/L	10d,Theta	10d,65%VAR	10d,95%VAR	10d,99%VAR

1.1%	4.4%	0.8%	17.4%	83.5%

Keep close eye on 99%VAR risk