I trust this post finds you well. This is the first time in 3 months that I’ve completed the end of month results update at the end of the month!

Diving right in: Although the Hunter accounts have mostly gone sideways again since last month, I’m pleased to report that the re-introduction of Razor accounts has proven to be a good decision as we report a positive result for those accounts this month.

Official July Results

• NMi Hunter Evolution

  Our hard-stopped, flat-to-the-market every day, discretionary day-traded accounts. In short, these accounts have moved mostly sideways and a little down, at -1.5% now after 3 months of consistent application. In future, I’ll be spending less time manually trading these accounts, but instead focusing on quality (not quantity) of trading and also recommending some diversification into the Razor account if you are not yet already invested.

• Razor Accounts

  We recently reintroduced this account at 50% of its former risk level. This system traded furiously during a 2 week period in July, of which the reopened accounts saw only the second week of that action for a best result of 5%. Colleagues running the system all month saw 10+% this month; with all positions closed, and no losing trades.

• Momentum EA

  Following several months of hard work, late nights, early mornings, and a not insignificant amount of coding costs, this month we have been rewarded with the 3rd best set of EA results I have seen. Respectable annualized returns with acceptable drawdown are reflected in backtests going back ten years (which few EAs can boast).

  This system has been designed as a true hands-free set-and-forget multi-currency robot trader, already working well on EUR/USD, GBP/USD, AUD/USD and EUR/JPY. It is based on comprehensive long-term backtesting, sensible hard-stopped trend-following trading theory and money management at 1-2% risk per trade with better than 1:1 risk-for-reward trades. It trades on average around 50 times a year per currency pair, so it’s more of long-term proposition (compared to a multiple trades/day daily scalper for example). There is still some further refinement to complete, but it’s running on a small live account on our VPS right now.

• Pendulum EA

  We’re about two months into development of this exciting new system. I ceased further R+D work on the Momentum EA to focus on this one. Pendulum EA is particularly appealing because its modus operandi is for very high returns via a very busy approach and significantly different approach (to what is considered typical trade theory). It involves a considerable number of daily trades and modifications and results in a market-driven mechanical trend-following grid-based system using a unique algorithm that results in it always being short when the market falls and always being long when the market rises from any point in the market!

  Having built and used two other proprietary grid based EAs, I can confidently state that contrary to the typical grid system methodology the Pendulum EA sets itself apart because:

  • it does not accumulate position against the trend, so there is no potential for open-ended risk in strong trends;
  • it’s specifically designed to thrive on volatility and strong trends, on the big days up and on the big days down this system will shine;
  • market price action determines the long or short bias, being long above, or short below any point in the market;
  • any losing position is always quickly hedged;
  • although nearly always in the market, it’s standard mode of operation is to go flat on every individual order set and it will always close flat over the weekend (eliminating the market open gap risk).
     
    

  Interestingly, when accumulating open positions that require margin (much as any other grid system does), this system in effect “cheats the system” by exploiting one very significant loophole when hedging (being an integral feature of this system): the brokers only require margin for one side of the hedge, so the balancing hedge is effectively “margin free”! What this means is that the account has an increased buffer over what would otherwise be available, which in turn translates to a lower relative DD, improving the overall DD-to-return ratio – which is a critical measure of an accounts performance.

Managed accounts moving forward

Essentially it’s business as usual; most of my days are (were) spent analysing the market and determining some good entries and exit points, and anyone who has traded understands that this in itself can be all-consuming. I will be spending less time doing that now, although I’ll still be keeping an eye open for just the absolute cherry trades (which will probably perform better than slavish day-to-day trading). Aside from the basic maintenance required for the running of Razor accounts, I’ll be focusing more on the longer term EA projects and some other aspirations I have for .  Ultimately, I think the refinement of the three EAs currently on the table will serve as solid base for us to keep going forward.

As always, if you’ve any questions please feel free to ask right here by leaving a comment below, or you can use the contact form to reach me directly. Either way I’ll always aim to give you a quality response the next business day.

Sincere Regards,

Adam