Below is an update on our strategies.
Our forex broker has advised the following on Friday:
“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)”.
Due to increasing in margin required we have turned off bots that trade pairs with CHF. For strategies that had one pair open we have closed that trade. For strategies with 2 or more CHF pairs with open trades we have left them open to complete the trade. At this point this is Wave Rock and Kosciuszko. However Karajini will not trade as it only trades USDCHF.
We are expecting this to be a short term change by our forex broker so once the margin reverts back to normal, the CHF trading pairs will be activated again.
On another note we have lowered the risk on the majority of our strategies for this week. There was large movements last week and whilst our strategies managed them well, the large movements seemed an over reaction to news coming out during the week. So better to be safe and lower the risk. Further it has been a great month on gains on most strategies which we will report at the end of the month.
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