As per our last message with have turned off our strategies once all trades are closed.
We will look to next week if we start our strategies again as markets currently are trading rumors and selling the fact. This trading the rumors is causing very large movements with days on end of either going up or going down in currency pairs. This means some of our bots which look at if going up or down is overdone and a trade is opened in the opposite direction. However, the market is not done and keeps heading in the current direction.
Some currency pairs are at very highs or very lows and it has to do with several reasons being interest rates, energy costs, energy security, war, commodity prices, China shutdown, recessions, inflation, stagflation…as you can see there are many balls in the air and markets are trying to predict the future now instead of waiting to see what occurs.
These large spikes caused a stop loss to be generated on the Ulladulla strategy this week. As a result, all profits it generated since starting have been given back. For our more recent investors they have also lost capital and profits due to the stop loss which we never want to see.
Due the stop loss we strongly recommend followers of our strategies to revisit their own risk profile. The way we trade is we take the capital off the table once profits equal our initial capital. This way we only trade with profits going forward.
Due to the above we are reassessing if some of our strategies will stop trading for a longer period as we cannot see the market changing in the short term until more facts enter the market instead of rumors which are the reason for these large movements. We reduced the lot sizes earlier in 2022 to reduce risk but it is still causing larger drawdowns than we want.
Due to the above we have been building new strategies designed for this environment and we currently testing them now. Links to the strategies can be seen below. These strategies have approximately 4 bots looking for trades instead of 1 bot. Some bots will not trade if another bot opens a trade. Also, some of these bots had been tested before and the risk was too high when by themselves, but by being with others they work much better. This way lot sizes are smaller again to reduce risk. We are also using a larger minimum capital requirement for these strategies as this allow us to use for example 0.01 lot for every $15,000 instead of 0.01 lot for every $10,000.
https://www.myfxbook.com/members/brindcapital/brindabella-capital-test-1/9514857
https://www.myfxbook.com/members/brindcapital/brindabella-capital-test-4/9513379
There is a bit of information to absorb, so if you have any queries, please do not hesitate to reach out.
