Please find attached the net return for August 2023 for standard and higher risk strategies.
There are a few items to discuss so this update will be a longer update than normal.
Fiji
Firstly, apologies for replying later than normal to any emails or calls for the month of August. Took the opportunity with my family to head to Fiji for 2 weeks. One of the large advantages to my business is that it can be run anywhere in the world. With our team also being in different parts of the world, the business runs the same wherever we setup.
You need to have some goals as to why you put so much on the line for your business. The returns are great, but they cannot be the sole purpose. One of my goals for my business when deciding why I was starting it was that it needed fund many travel experiences.
This has already begun this with two road trips around Australia and our first international experience as a family to Fiji.
Our family is not the kind that can sit by the pool all day. Our first week was on Mana Island where we slept in a cottage 20 metres from the ocean. The cottage was part of the local community with the school behind us. Plenty of snorkelling the reef, jumping off the rocks into the ocean, paddle boarding, exploring the island and the spots Survivor had setup and just taking it all in. The ocean is so clear that you can see the ocean floor even if you are 50 metres from shore.
Our 2nd week was on mainland where we went river tubing, electric bikes on old sugar cane trails, teaching my son to play pool, sea kayaking and spending it as a family (or alone as like all families we have our moments). All this was completed with just one carryon bag each – get kids ready for backpacking when they finish school. Have attached a couple of pics.
Returns for August lower on some strategies
The reason for some lower returns for August can be contributed to the Jackson Hole Symposium which was held on the 24 to 26 August. This is a big deal in the finance world and can make large movements in the currency markets depending on what is said.
This meant for the majority of August the markets where waiting for this 3-day gathering to take place and interpret the presentations. Whilst we waited, the markets just moved sideways which meant little abilities to trade the market. Further to this, after the Symposium there really was no unexpected news that had not already been factored into the market.
For our strategies some still traded well and produced a good return whilst others hardly traded at all as there was no strong oversold or pullbacks occurring on currency pairs.
No Change to the Strategies Due to Market Conditions
Each of our strategies trade in different ways as you cannot predict the market or which strategy will perform the best. What we try to do is cover different market scenarios which means one strategy will trade better than other and this can flip if the market changes. We do not chase the market conditions. We take a long view of managing risk to achieve our annual return. This means there is nothing wrong with the strategy, if returns a low it is just the market conditions did not suit the strategy at this time.
Higher Risk Strategies
We will now publish two net return posts. The first for our standard risk strategies and the second for our higher risk strategies.
The standard and higher risk strategies operate the same. The only difference is the lot size on the level of equity. The higher risk (HR) strategies minimum equity requirement is $10,000. For example, Coral Bay standard risk opens lot sizes on minimum equity of $30,000. For Coral Bay HR the same lot sizes is opened on the minimum equity of $10,000.
The reason for setting up the higher risk strategies is for two reasons. The first is we wanted to push our strategies and have a large target to achieve. This target is generating an average return of 40% each year for 10 years. The outcome is to grow the $10,000 to $1 million in 10 years. This means all returns stay in the strategy and keep compounding to achieve the outcome.
To achieve this, the HR strategies will have larger draw downs and carry 3 times the risk of the standard risk strategies. If the draw down reaches 30% bots are stopped from opening more positions to give time for the trades to turn itself around or look to take manual control.
We have been running these HR strategies on our personal accounts from the start of this year. We are now ready let investors follow them. An example is attached of the All Tassie HR on our personal account showing gross returns since February 2023.
The other reason for starting the HR strategies is not all investors are initially comfortable with the minimum equity on our standard strategies. This provides another option for investors at a lower equity point but we stress whilst it carries higher returns, it carries higher risk.
Not all our strategies are on HR but will be in time. Instead, we put our resources into our new strategy below.
The Great Barrier Reef Strategy HR
One new strategy we have started which will not have a standard risk strategy for is The Great Barrier Reef Strategy HR.
It has been designed for the sole purpose of operating at higher risk and with minimum equity of $10,000. 3 bots scanning several currency pairs for oversold and pullbacks. This signal will not trade all a time as it looks for the right conditions for a trade to be executed.
CopyTrader
All our strategies are now available on the BlackBull CopyTrader platform. Instead of investors monies being pooled together in the MAM and the open lots having to be pro-rated based on equity, the CopyTrader platform only looks at each investors equity and opens the lot sizes based on the just their investors equity. With the MAM one issue that sometimes occurs is when you have large investment equity mixed with minimum equity it can cause lot sizes to be marginally different hence returns can be impacted.
Investors should connect to our strategies through CopyTrader.
Christmas Shut Down
We begin to plan for the strategies to shut down for the Christmas and New Year period. We do not know exactly the time period for this as again it depends on the market. We try to be out of all trades before Christmas. We begin the analysis in November so we could close earlier or maybe right before Christmas. Keep you posted closer to the time.
Contact
At stated at the start this update was a little longer than others. Any queries, please do not hesitate to come back to me.
