Attached are our net returns for August 2021.
It has been a very busy month so we will explain this further below.
The Ulladulla and Wave Rock strategies performed extremely well this month. The normal process is our bots undertake 95% of the trading however there are times we will manually overrule the bots. August was one of those times. Firstly, we lowered the risk on our strategies as the market was overactive along with over reactive. This will be explained further in the example below. The other manual adjust we made was to some of our open trades by increasing the take profit as we knew the market was overreacting so it would swing back. This meant Ulladulla and Wave Rock benefited from this along with Coral Bay as it generated strong profits on the trades.
An example explaining the above was news that China were slowing down on the purchase of iron ore, so the AUD began to drop quickly. Slowing down does not mean stop buying and China still buys a lot or iron ore. Soon as the market realised this the AUD shot back up again and if anything has now gone up too much.
We have also had to stop trading on our CHF pairs as our broker has advised the following:
“BlackBull Markets is increasing the margin required for all CHF pairs. The increase in margin is necessary to mitigate the risks foreseen with the Swiss National Banks intervening in the value of the CHF. We would expect substantial market volatility if there were to be a Swiss National Bank intervention. To protect our clients from a volatile scenario, we will be increasing our margins by 5 times as of Friday 14:00 server time. As an example, if your current leverage on an FX pair is 1:100, then the leverage is being reduced to 1:20 (5 times lower)”.
Until the margin returns to normal for CHF pairs, they will not be traded as part of our strategies.
This impacts a few our strategies, but the strategies will continue to trade as they normally do. However, the Karijini strategy has been turned off as it only trades the USDCHF. Investor accounts linked to this strategy have already been notified of this.
For September we are going to continue to trade with the lower risk as the market still appears very quick to react to any news and this is causing larger movements than what we normally would see. Whilst our bots manage this, it is just safer to trade with lower risk.
Any queries, please do not hesitate to reach out to us.
