In this month’s video, Andrew walks you through what’s happened for the month of December:
Hey it’s Andrew Mitchem here, Head of Trading at JAS Funds, with a review for 2018.
And by the way, Happy New Year for 2019. So 2018, well it was our first full year at JAS Funds. Quite an interesting year, trading wise. A lot of political events affected the market. And not always in a good way. And not always in a particularly easy way for us as traders.
But our philosophy of course is to keep our risk low and to have slow and steady, consistent gains. Now, with the political events, there’s a lot of things happening, even right now, that are affecting the currency markets. And of course, Brexit is not still fully concluded. Political unrest within parts of Europe.
We’ve got Russia, we’ve got China. We’ve got Trump and of course, every announcement that he makes affects the market. And they are similarly, on a daily basis. And from time to time, that makes trading a little bit more tricky. So what have we done about that?
The Beauty of Algorithm Trading
Well we actually decided last year to eliminate the daily trading from our JAS Accounts. So that’s the manual trades that I take myself and we focused primarily on algorithm trading. Several reasons for that. The beauty of algorithm trading is there are no emotions within the trading. Exiting and entering trades, you know, there’s no emotions there.
But the beauty is that it allows us to trade a variety of different time frame charts which is really important when the market can be quite unstable. It also allows us to trade various currency pairs. And by that, it means that we can trade different currencies and basically spread our risk across different currencies.
Now, a lot of work goes in behind the scenes into creating the strategy and the actual concept of the algorithms. And then of course, a lot of time goes into the back testing. We back test over five years of tech data. Which means every single movement of price over the previous five years. And then when we have success there, we then take that through into live trading.
And on a good substantial live account, the trades are monitored and throughout … Sorry about that noise. By the way. That’s the thing when you’re filming outside. But the trades are monitored throughout live trading and then we then are very selective on which algorithms then go through to become live running on your JAS Accounts.
And of course, once they’re then running live on the JAS Accounts, after at least six months of proven live testing, we then of course are continually monitoring them on a weekly basis, once they’re on live accounts. The beauty is, of course, is they trade 24 hours a day, five days a week with no emotion. So that’s a quick concept and an update of 2018.
Our Aim into 2019
Where does that leave us now, going into this year? Well, I would expect a lot of these political unrest events to continue. I’d expect that a lot of the charts will be relatively tricky to be trading. Which again brings us back to the beauty of the algorithm with the no emotion, the multiple time frames, the multiple currency pairs.
And already this week, as I’m recording this today on the 11th of January, we’re up as I’m speaking right now, 10.4% on the JAS Accounts for this week. Now of course, that’s not gonna happen week after week after week, unfortunately. But the reality is that it’s not going to. You know there will be profitable weeks, there’ll be losing weeks. And that’s the nature of the longer term business that we and you are both in here.
But it just shows what can be achieved. And so our aim into 2019 of course is low risk, consistent gains and a steady increase on your account. So, as always, if anything you need, feel free to contact myself, Jamie or Stefan. And we’re here to help make 2019 and beyond a fantastic year and time for you to be involved with JAS.