Hi @jumpergrog, @DAIICHI, @asder34 and everyone else,
I’d like to shed some light on the recent drawdown.
The optimistic comments from both sides of the Brexit negotiations in the past weeks where supported by positive economic numbers on the british economy and made the exchange pair trending strongly upwards. Our system placed a bigger bet on a continuation of the positive climate. Then came the much hoped for Salzburg summit where PM Mays Chequers proposal was unexpectedly rejected and the uptrend of the pound came to a halt. But what made the sterling fall like a stone was the reaction of Theresa May. As soon as she talked of the Brexit negotiations having reached an “impasse” the pound had its biggest drop since the referendum. As a consequence our system pulled the emergency break and closed all positions with a significant loss erasing all previous months gain.
It is always easier to digest a drawdown as it happens slowly over days or even weeks as to see it happen in a matter of hours. Despite the risk of sounding silly I have to state that even though a loss of 12% on a single day looks just brutal - it still is rare but expected behaviour. However in light of the possible developments concerning the Brexit talks in the next few weeks and the increased volatility we have decided to reduce the risk for all trades in GBPUSD.
If you have any further questions, please ask.