Please find below May 2025 net return update.
In summary what a boring month for traders compared to the previous months.
When Trump now makes tariff announcements it appears the markets waits for about 1 week to see if he will follow through.
Hence the new term now being floated for Trump – TACO.
Trump Always Chickens Out.
Whilst funny to start with, but it could push Trump to hold his ground on his next decisions just so the market takes him serious along with other country leaders.
This is person that thinks about 5 minutes forward in time without understand the long-term consequences. If you back him into a corner, he is going to put his pride first before common sense.
I am not sure how American businesses can trade understand such conditions especially if you import goods. For example, you order something today thinking it is $1 each but then tariffs are applied, and it goes to $1.50. If you have forward contracts in place your profit margins have just disappeared or now making losses.
Markets saw little movements. It mostly just traded sidewards. Some of our strategies look for strong reversal movements which there was hardly any. Some of our strategies are looking for currency pairs to move outside the wave pattern, but most of the time this month it was flat with very small waves.
With very busy months prior in the markets and strong sudden movements, it means our strategies have data that is analysing what is the wave pattern and if it has now changed.
If you looked at our returns for 2025 compared to previous years, it clearly shows we are off the mark. But from our side we proud of where we are at as our capital continues to grow and is being achieved within our risk parameters. If this was over 5 years ago, we would try and trade through high-risk times and put too much pressure on our strategies to continue to perform. But now, we understand that the market is not always going to be right for our strategies which is ok. Just need to be patient and remain our course. Can jump into the market once it is right – need to already in it to take advantage once it occurs.
Any queries, please do not hesitate to come back to us.
