Review of Christmas Period

We are now well into the new year and this is going to be a very exciting year ahead for ERIC.

Review of Christmas period 

Firstly, we have just finished a review of ERIC's performance over the last couple of months and even though we didn't get high profits, it passed all the other other performance indicators with flying colours:

  • Capital Protection 

The capital protection on a trade level worked perfectly. All trades performed had appropriate stop loss parameters placed at initial order and all trailing stops worked perfectly to try and lock in any profits in case of a price reversal

  • Technical Performance 

We have  ERIC running on a high quality external VPS (Virtual private Server) and have the individual strategies running across over 3 instances of metatrader for increased redundancy. During a 3 week period, we did no maintenance, reboots, resets or anything. We just let it go and do its stuff. The end result is that we had no technical issues at all. This doesn't mean that we won't be monitoring and improving the technical aspects of ERIC but it proves that we are working from a very solid base.

  • Results 

The results were average. In short it was roughly breakeven or even a 1-2 % drawdown. Yes of course we would prefer to post great returns for ERIC today but there are many positive aspects to this result. 

Firstly, there was no great loss or drawdown. This is actually extremely important. The biggest risk in trading is losing your capital. Now if you are using high risk/high return strategies, it is only a matter of time when you see a big hit on your capital. Often very, very quickly. Trust us, we have seen it all. By having a diverse group of low risk, low return strategies that don't try and average down or place stupidly large trades to get out of trouble we are guaranteed to have a stable trading system.

Secondly, not all months will be profitable months. The Christmas period is notorious for low volume, strange behaviour which probably accounted for lack of returns however this can happen anytime. We never, ever know and anyone who tells you they do cannot be trusted. Other months will reap well above average returns. This is the way trading works - no matter whether it is manual or automated. If anyone tries to get good returns month after month forever, risks will eventually be taken when a month is shaping up badly which will eventually translate into a financial disaster. This is a guarantee!

Thirdly, we have identified some urgent areas to improve ERIC very quickly and these will be discussed in the next post.

Posted 20 January 2021