Please find attached our net returns for September 2022. It is earlier this month as all strategies are turned off.
The strategies with GBPCAD impacted means these accounts were closed in a full loss position so all profits and capital was lost. Explanations were provided on our previous post.
We have started the process of looking into it and whilst it is easy for us to blame in on the GBPCAD gapping that occurred within less than a minute per our previous post – we also need to build strategies that can absorb this even if it rarely occurs.
The bot that took this trade we have been using now for 5 years and would say it is our number one bot for performance – until now. It was used by itself in isolation on Kangaroo Strategy which we no longer will do in this type of market.
On Wave Rock and Mollymook this 5 year bot operates with a number of other bots and had been working very well. But with the market as it is and in hindsight, we should have reduced the lot sizes on this bot. Earlier last week we had stopped all trades occurring on GBPUSD but left GBPCAD still on as whilst it moves around, it trades well for reversals.
With strategies you try and build them and reduce as much risk as you can but if you reduce it too much, trades will never take place.
If the gapping on GBPCAD from 1.4700 to 1.4010 did not occur, these closed out strategies would have already closed out the GBPCAD positions this week in profit and the strategies would have continued on. But reality is, this did not happen and we understand how disappointed and upset our investors are with us.
We have turned off all strategies and understandable we received some harsh words from investors. Now we are in the process of undertaking a full review. The initial review on Wave Rock is we will look to start this again but the bot that took the GBPCAD trades will have its lot sizes reduced and we also remove GBP pairs for the time being. But further analysis is still required.
If there is any queries, please do not hesitate to make contact.
