Gary Comey

There’s no question that we take risks. The high risk account is HIGH risk and we are usually reminded of that every 12 months or so. We’ve always gotten out of it because even though the DD was tiny for a long time I never raise position size. The decision to buy GBPCHF was a mistake but the position size was correct and that’s how we survive mistakes. WHEN we get back to cash we will have all made up to 80% this year compared to the German 10 year yield which is actually-0.26%. Your money is guaranteed by the German government but they are actually charging you for the stability. https://www.bloomberg.com/markets/rates-bonds/government-bonds/germany

Risk is our business.

That’s a decent shooting star daily candle. Right now I’d take it if the market closed like this.

Current DD under 30% is significantly better than last night which was horrendous. My thinking here is to let this settle further and let the weekend throw up worries and complications.

Basically having bid Sterling up in anticipation of a Tory majority our bet is that the market sells off on Friday after the rumour becomes fact. Obviously a Labour win or anything that complicates a Tory win will help but we simply need #GBPCHF to move back towards the weekly 14 period MA which is under 1.27. Failing that we have our strategy.

SWAPS represent about 1.5% of the balance so only a profit +1.5% is true break even. After that we are in the black.

The way I see it there's two things going against us. 1. Sterling is rallying on the expectation of the Tory's gaining more seats, and having a working majority, ending paralysis and 2. Equity markets are strong with the S&P 500 engulfing losses to push to within reach of all time highs weakening the safe haven Swiss Franc.

I see Sterling perhaps gaining further next week though obviously it's pricing in perfection and as soon as the election results are counted we will start worrying about either parliamentary arithmetic or BREXIT or a trade deal or whatever. This assumes there is no wobble in equity markets that seem to be pushing for what will probably amount to a "push through failure" to all time highs before correcting significantly.

The question then is can we afford to wait. I think right now we can. DD in Alpine is 15% (in the low risk more like 5%) and while it's boring to wait it is also part of the strategy. I won't add to this position before the election results come in (an advantage to manual over automated strategies). This keeps it safer.

Again no gain in cash this week but slow and steady keeps us safe and in shape for 2020.

FYI I sent the following into my managed clients group chat this morning.

“ The last time I had a decent DD I had about 100 of them, this time over 600 and it appears 50% of them are 100% prime snowflake so there is definitely a sense of being under siege. I am now conscious of it and taking it with a pinch of salt but it was a bit of an eye opener at first. When this basket closes I will have a good think about weather I want to continue with the website MQL5 which appears to be the source of most of the shoestring accounts and destructive comments.”

It’s not definitive but it’s up for evaluation when this basket closes. I simply don’t need the venomous comments and it’s not productive to clear headed trading. I don’t need the money. Alternatively I may just raise the price to make it uneconomic to follow me with $500.

Well the current DD in Alpine (high risk account) is circa 9%. The election is of course coming but there is also the CHF component. A sharp decline in the equity markets or any event that causes a flight to a safe haven asset like the Franc will help our trade. The volatility around the UK general election itself may help our trade.




The strategy in general requires volatility to work and so far we are nowhere near the point that would be stressful or dangerous to the accounts. That is not to say that people are not stressed because there are plenty of people out there who in spite of me begging and pleading with them not to, have over-leveraged me or are simply bored and need a "fix" with some sort of action. I can't blow millions of dollars to satisfy them. I suggest the guys trashing me on the forums read the strategy again.

It’s definitely been a frustrating few weeks, not only because of the drawdown but also because I’ve spent the last week in India and while I can stay in close touch with the market it is still not comfortable to be away from the desk. I’ll be back at the desk on Monday.

I’m also fielding dozens of fairly angry and often ill informed copy traders with comments like “another Sterling nightmare”, ignoring the fact that BREXIT has made us huge money since 2017. They can of course be justifiably frustrated as I am, but as the trader I can’t make the market move, my job is to react rationally and I will continue to do that. I can not blow millions of dollars because people are frustrated that the money tree has temporarily stopped growing.

So anyway yesterday’s shooting star candle was a little encouraging and may lead to further declines in the coming sessions. Sterling remains fairly strong across a number of pairs including GBPCHF and that won’t last forever. CHF by itself is obviously a safe haven currency so it is reasonable to assume that a safe haven currency will be required sooner or later thus helping our trade. Current DD in the high risk account circa 8%, well within safety parameters.

Hmm. People appear to be panicking over a 5% DD so here is the strategy again.


Blackwave Strategy - Basics


The strategy is a manual grid strategy. While it has traded exotic and EM pairs profitably in the past it only trades major and minor forex pairs now to reduce
the cost of SWAPS and the inherent political/geographic/economic uncertainty around many exotic/EM pairs. When markets are overbought or close to overbought trades are opened
counter-trend. When profit targets are hit trades are closed. If the market continues to move against the initial position then a second trade is opened based on candlestick
price action and how the market is trading/pending news etc. Up to 12 positions maybe opened.

When markets are oversold or close to oversold trades are opened counter-trend. When profit targets are hit trades are closed. If the market continues to move against the
initial position then a second trade is opened based on candlestick price action and how the market is trading/pending news etc. Up to 12 positions may be opened.

Risk control is achieved through position sizing. Position sizing MUST be the most important feature of the strategy because there is no hard stop loss and no hedging.
People will often happily accept extraordinary profits and only query the strategy when they experience a stressful drawdown in their own account even while the master account
remains quite safe. This is because they have failed to understand how crucial position sizing is for the strategy.

While there is no hard stop loss there is a soft one which is market dependent and as follows;

Blackwave California - Approx 15%
Blackwave Pacific - Approx 35%
Blackwave Alpine - Approx 50%

Blackwave California $3000 = 0.01 lots
Blackwave Pacific $1700 = 0.01 lots
Blackwave Alpine $1000 = 0.01 lots





This strategy has produced excellent profits since 2015 and is now one of the oldest strategies on most copy trading platforms. It is the inspiration for three MAM accounts
managing $3m of other peoples money. I never place trades in client accounts that I do not wish to place in my own accounts too and as at June 2019 my own commitment to this
strategy across all three risk levels is $190k.

These are the basics. To give any more information would be to reduce my flexibility and take away the major advantage of a manual strategy and make it effectively automated.
As a former stockbroker I like to watch all markets at once and get a sense of what's going on rather than put blind faith in back-testing which in the end only tests the past.
Links below to Blackwave Money Accounts which demonstrates my personal commitment to this strategy.

Sorry about the slow pace of the current basket. 🙄. This happens maybe once per year and hasn’t happened yet....until now.

People keep asking me when will I retire since the last post in January. Still not retired. I had a notion to take some of the money out of Blackwave Pacific and stick it in a hole in the ground in Portugal so I bought a little studio apartment in a complex with a pool, bar etc. After refurbishment I'll likely rent it out from 2020 and give Blackwave another source of income from a different asset.

Blackwave Pacific is now in it's fourth calendar year trading since 2015. I might just retire to France soon ;-)

TWITTER: @BlackwaveFX Blackwave Strategy - Basics The strategy is a manual grid strategy and not an EA. While it has traded exotic and EM pairs profitably in the past it only trades major and minor forex pairs now to reduce the cost of SWAPS and the inherent political/geographic/economic uncertainty around many exotic/EM pairs. When markets are overbought or close to overbought trades are opened counter-trend. When profit targets are hit trades are closed. If the market continues to move against

VIDEO: 2016 Review.

http://www.fxlight.co/managed-forex-accounts-mt4-copy-trading/

Trades USDJPY Max DD 25%. It is completely automated and run by a robot off an hourly chart 24 hours per day under human supervision. California trades in one direction at any one time. Its uses specific circumstances to determine market conditions and bracket the current price with a STOP and LIMIT order to profit in that direction. If the direction is long, BUYS are used to take profits. If the trend reverses, BUY LIMITS are hit and profits taken on the reversal. If the direction is short

VIDEO: Managed Forex Account Performance Update http://www.fxlight.co/managed-forex-accounts-mt4-copy-trading/