JAS Fund Monthly Update for May 2019 - by Andrew

In this month’s video, Andrew walks you through what’s happened for the month of May:

Hi, it’s Andrew Mitchem here, head of trading at JAS Funds with a video for June 2019.

Big Trends on the Market

We’ve had a really interesting time over May. We’ve seen a lot of big trends on the market. We’ve seen, in particular, big falls on most of the British pound pairs. Largely due to Brexit and there’s still the ongoing uncertainty. Of course the changing of the guard Theresa May changing very shortly or standing down very shortly. We’ve also seen big falls in the Australian dollar and the New Zealand dollar. Again, that could be partly political as well. With things in New Zealand not too great and Australia just going through an election as well.

It’s really interesting that as technical traders how we see what you hear on the news, the fundamentals being reflected on the charts. It’s our job, especially with our manual trading, to try and take trades that are in the direction of those big trends when they occur. That’s what we’ve been seeing on the manual account, with that account up 6.8% since we started trading that manual with very, very low risk.

Our Weekly Analysis

On a Monday only a quarter of 1% risk on a trade. On the other days of the week only half of 1%. We reduced the Monday because on a Monday we’re at the start of the new week. We’re basically looking at what happened last week, trying to make predictions for the upcoming week. Monday’s always a little bit more of an uncertain day. A little bit like Friday when Fridays there are a lot of people closing positions. That’s always something that’s at the back of my mind, especially with a manual trading.

With the algorithm we have a number of positions that are open along on the New Zealand dollar and also on the Australian dollar. Those are affecting our open drawdowns right now with some quite large open drawdowns on some of the algorithms, but we monitor those continuously. We are always tweaking the position size, the lot sizes, with our weekly analysis of all the algorithms both in testing and in live stage. That’s always an ongoing process. As always with our aim is for consistent growth and to keep drawdowns to a minimum.

Heading into June and July

As we head into June and then into July we start to head into the traditional quite months in the Forex market with the northern hemisphere summer season starting to kick in, especially as we head into July with Europe and North America on a lot of holiday times over there. It’s also going to be interesting to see how the US continues to perform.

Despite the worlds continuous bashing of Donald Trump the US economy, from all accounts, is still doing extremely well. The US dollar’s going very, very well. Again it comes back to what you see on the news and what you hear. Sometimes that’s reflected on what you see on the chats, sometimes not. With Brexit and with the weakness in the Kiwi dollar you definitely see that reflected in the news and you see that reflected on the charts. For the US it tends to be one side Trump bashing. Whereas in reality on the charts the US is doing very well. It’s going to be interesting to see how that continues as we head into the summer season in Britain and in America.

Once again this is Andrew Mitchem head of trading at JAS Funds.