Well BREXIT vote is decided, and it turned out against market expectations bringing extra volatility to the markets. For the last two days after the vote, markets have seen extreme movements in some of the currencies with potential to be more largely affected by prospects of negative ans political impacts such as the Euro and the British Pound.
As announced and planned, Arion, our only running strategy at the moment has not been trading since last week before the referendum. It’s hard to predict what could have been the behavior of the strategy during this period. We know the strategy responds well to more volatile periods, and it’s very possible that the strategy could have provided us with some additional returns to what already seems to be a very positive month. However, as stated in the strategy description and objectives, the path we follow is not to maximize returns regardless of the risk, but rather the opposite: we aim to maximize returns within a controlled and pre-defined risk framework.
BREXIT was binary event with large potential to introduce a significant risk contribution to our trading, and therefore we are happy with our decision to halt trading for the last days and protect our hardly won returns for this month of June.
As brokers slowly return to normalizing trading conditions so will we also. We plan to slowly and gradually resume trading today or tomorrow, unless some unexpected relevant market event occurs.