In this month’s video, Andrew walks you through what’s happened for the month of October:
Hey, it’s Andrew Mitchem here, head of trading at JAS Funds, with a report for November, 2018.
Actively Managing Open Trades
So October was quite a difficult month to be trading. Overall we saw a lot of strengthening in the US dollar, and there was a lot of weakening in the Euro and the British pound in particular, with also weakening to a lesser extent in the Australian dollar and New Zealand dollar.
What we’ve seen overall is we’ve got our large open drawdown on our open positions, and obviously it’s too large, and it’s far bigger than we would like. But we are actively managing those open trades, and what’s happened is that one of the algorithms which was featured over 20 different currency pairs has been the prime cause of that large open drawdown, and so what I’ve done is I’ve closed off that algorithm so it’s no longer taking new positions, and right now we have 33 trades still open on your account that is as a result of that algorithm which has been manually managed.
Now it’s interesting when we look at our stats that we’re finding, right now as of today when I’m recording this video on the 1st November, that we’re finding that 80% of our current open drawdowns come from those 33 trades from that one algorithm, and we are doing our best to bring that open drawdown back to a smaller level, and back to the 10% level which is a level that … prior to August, we were maintaining a maximum of 10% drawdown throughout the previous months.
Aim For JAS Funds
So, our aim is now to manage these open positions and close them off gradually over time, as the market allows us to do so, and to bring open position drawdown to a maximum of 10% again.
Now another couple of developments is that we have consistently and constantly adding new algorithms to our testing account, and we’re starting to see some very, very positive results come though there. Now the algorithms, once they have been back-tested and then live forward-tested, they remain in our testing account for a minimum of six months to ensure that results in real live trading are consistent, and match what we see in back-testing, and then, at that stage, we then bring them across to the live accounts.
The second development, which is very, very exciting, is that we are using the 80/20 rule, and we are finding that pretty much about 80% of our profits come from about 20% of our trades, so what we’re doing is we’re filtering through our algorithms, and we are taking our highest performing algorithms and putting them aside into a group, and we are looking at taking those trades forward on to your live account. And so, the aim on that, as always with JAS, is to protect your funds and keep your drawdown low, but with the aim to be substantially increasing the returns that we’re making for you.
So, this is the video for November.
As always, if there’s anything you need, feel free at any stage to contact myself, Andrew, or contact Jamie or Stefan here at JAS.
We’re here to help you.