The 6th week has just passed. Unfortunately, my futures game has no happy ending. After taking a short position for all of my timber futures (6 units) and soybeans (3 units) at market price, my profit became negative on last Friday. This scenario revealed a fatal weakness of my strategy. My strategy was buying only 1 unit futures at the very beginning. Then, I would never care about the volatility anymore, what I care is how much the price is going down. The larger the decrease, the more I long. For example, I bought 1 unit of timber at last week, and then I bought five more units when the price experienced a decrease of 3%.However, when the price continually crumbles down, I started to hesitate to long more timber due to the unclear future of timber. Finally, I gave up to long more, selling all of them to avoid losing more.
All in all, I feel that if I take that kind of strategy, I should have enough capital reparation. Given that the bottom of the futures is unknown, a strategy like what I took would face ultimate risks.In another word, it is possible for me to lose all of my money if the price keeps going down for several month.
Relatively, Ricky’s strategy would be much safer; he made the profit by longing five units juice futures, and then he longing more units of them. This strategy makes it possible to make higher profits. Once the price goes down, then you can just sell it to protect your original money.next time ,i want to try and adjust this strategy!

Look forward to the futures course next semester.