Here’s the breakdown by monthly return:
Here’s the breakdown by monthly return:
Lambda Ascent: +2.4%
Omega Genesis: +.9%
Omicron Growth: -1.41%
Theta Trader: -10.35%
While Theta Trader recorded a loss for November, it is only the second time this year it has recorded a loss for a single month and just the third time in the past 2 years which it has had a negative month. This represents a great time to join the Theta Trader program if you had been considering joining but weren’t sure when a good time to join would be. Theta Trader is poised to make a comeback in the coming months, one you surely do not want to miss. Especially considering we are still running our promotion waiving our $200 technology integration fee typically charged to all new accounts and lowered our minimum deposit to $5,000USD.
September 2015 netted our signals and managed account programs a combined 11.87%. The biggest gain was in our managed account program which saw a 21.03% increase over the course of the month. Keep in mind the S&P 500 ended the month -2.64%.
Here’s the full breakdown
Theta Trader: +21.03%
Lambda Ascent: +.16%
Omega Genesis: -1.32%
Omicron Growth: -8.00%
Our managed program, Theta Trader has had not only a tremendous September, but a tremendous 2015, having netted over 98% for the year!
Here’s some quick math – if you had invested just $10,000 into Back Bay Markets’ Theta Trader program in the beginning of this year, you would’ve made $13,593.20 (before fees) and had a balance today of $23,593.20!
For a limited time the $200 activation fee that is typically charged for all new accounts is being WAIVED. This is a great time to get into the Theta Trader program.
(Past results are not necessarily indicative of future results. Read our full risk disclosure)[vcex_divider style=”solid” icon_color=”#000000″ icon_size=”14px” margin_top=”20px” margin_bottom=”20px”]
Looking at the FX market for September 2015 we saw a number of big moves and a few surprises. Across the globe, markets have been in turmoil since the Chinese surprise devaluation of the Yuan earlier in August. Emerging market currencies, US stocks, European stocks, and commodities have all seen losses throughout the past month.
The big question of when (and at this point, if!) the US Federal Reserve will increase interest rates remained unanswered as Yellen and the Fed decided again to leave rates unchanged despite a number of financial thinktanks speculating September would be the month the Fed finally raised rates. This decision pushed the S&P500 down during the first week following the announcement. On the other hand, the yield on the 10-year Treasury Notes jumped on the news, closing higher at 2.166%. Only time will tell if the Fed decides to raise rates in October, or later.
Interest rate hike predictions in the UK have kept the pound from making any considerable gains against currency pairs, in fact the GBP/USD pair has toppled from a high of 1.5655 in mid-September to a month end in the area of 1.5111. The United Kingdom had been the fastest growing economy in the developed world going into 2014. Mid-way through 2014 a massive weakening of the GBP and the UK economy as a whole has continued well into 2015 as baskets of currencies have strengthened against the Pound.
Japan had relatively few surprises for currency markets. The Bank of Japan (BoJ) went forward with its stimulus and was backed up by the fresh Japanese government. The market-coined term, Abenomics, describes Japan’s three pronged attack on overcoming deflationary and boosting output, this stimulus package one of those prongs.
USD/JPY has bounced in a narrow range around the 120.00 figure with price action being choppy at times but never straying too far away from the big figure. There was and is some disappointment that the government has not yet progressed on big structural reforms, while the Bank of Japan indicated that the current rate of policy stimulus is about right as Japan has shown signs of a recovery.
May 2015 netted our programs a combined -17.14% in growth for the month. The full breakdown is as follows:
Omicron Growth: -6.66%
Theta Trader: -6.16%
Lambda Ascent: +2.54 %
Omega Genesis: -6.86%
Aside from the steep ascent of the USD/JPY pair, relatively low volatility throughout the month of May on the major currency pairs left our managers with little to “work with” and it was reflected in the monthly results. Although down months are never something to boast about, based on past results this represents a terrific opportunity for clients who may have considered joining in the past but haven’t done so yet to start signal trading as our managers rarely get into extended drawdowns and often “rebound” very well.
The New Zealand Dollar extended a prolonged fall in value against a basket of most major currencies. Interestingly, the consensus behind this fall in the value of the Kiwi points to a fall in milk price forecasted by Fonterra, the world’s largest dairy product exporter. Combine this with a trade surplus drop from NZD754m to NZD98m, and fears that a weak Chinese economy may reduce New Zealand’s export business are leading many to predict this fall could continue through to .65 through the following months before the currency recovers.
The Canadian Dollar remained somewhat sideways throughout the month, though range bound the USD/CAD pair ended just about the 1.25 figure having started the month off just shy of 1.21 the figure. In the Bank of Canada’s public statement it attributed the slide to negative impacts of a recent strengthening in CAD globally and a slowdown in demand from its U.S. partners to the south. Although oil prices have started to rebound from record lows many expect oil prices to stay well below average and in turn push inflation to sub 2%, the Bank of Canada’s target for inflation.
The Bank of England is still eyeing a rate hike as their next “big move”, though with the news that inflation has officially hit 0% in May and economic growth figures were downgraded to 2.5% it is assumed the Bank of England will push back their plans for a rate hike to even further on down the road, perhaps mid next year. The Bank of England also added in its May statement that inflation could and likely would dip into negative numbers throughout the summer as lagging commodity prices catch up with the British economy.
March netted our programs a combined +26.69% in growth for the month. The full breakdown is as such:
Omicron Growth: +4.47%
Theta Trader: +12.34%
Lambda Ascent: +8.53%
Omega Genesis: +1.35%
March saw a number of big moves in the FX market. Falling oil prices on top of western sanctions saw the Russian Ruble succumbing to tremendous pressure, ultimately leading the Russian Central Bank to intervene with a handful of gradual rate hikes one after another.
To stimulate a limited amount of inflation and boost any economic growth already developing in the Eurozone, the European Central Bank launched a hefty quantitative easing (QE) program, very reminiscent of both the UK’s and the US’s QE programs between 2009 – 2013. As expected, bond yields have tumbled to near record lows and as a result devalued the Euro almost across the board and cheapened domestically made goods for foreign importers. European stocks, too, declined throughout the month but have sustained significant growth in previous months.
The U.S. Dollar continued to advance against the Euro, just short of a 13% gain for the month. This brought the EUR/USD pair to a 12-year low at 1.0456. During a March 18th Federal Reserve press release, the Euro clawed back some against the dollar when the Fed publicized it was downgrading its economic and inflationary outlook towards the USD. The Federal Reserve also announced it was tapering back its projected pace of rate hikes in the future. Disappointing retail sales reports, durable goods reports, and the state of the housing market continue to bring down an otherwise strong US Dollar.
The Australian economy, tightly tied to the falling commodity prices of the past 12 – 18 months has struggled to make gains against many currency pairs. Australia’s two largest exports, iron ore and coal fell by 50% and 25% respectively over 2014. Although the Australian Dollar fell by 3% for the year 2014, the Reserve Bank of Australia continues to drop interest rates in what appears to be an attempt to lower the currency further.
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February netted our programs a combined -4.10% in growth for the month. The full breakdown is as follows:
Omicron Growth: +3.05%
Theta Trader: -0.45%
Lambda Ascent: -15.2%
Omega Genesis: +8.5%
Relative to the SNB debacle that caused chaos for much of January, February was comparatively quiet. The first half of February was dominated by news out of Greece that they (again) may leave the Eurozone. As the situation in Europe improved, Greece backed off on its empty threats and lead to a second half of the month centered around variances in monetary policy and a strengthening of commodity prices.
The biggest “macro” event in February was the United States Fed chair Janet Yellen’s Congressional testimony where she clarified the Fed’s use of the word “patient” in its statements. In doing so, she effectively announced the removal of the term from future statements, though she did not give any indication to when rates may rise. U.S. equity markets captured their best monthly gains since the year 2011, hitting brand new all-time highs amidst generally good corporate earnings and economic data.
Japan remains on solid footing looking forward to a better economic recovery in 2015 than in 2014. A weaker Yen, tight domestic labor market, and cheaper oil have all contributed to modest economic gains in the island nation. Japan has set a 2% inflation target for itself and hopes to hit it as soon as possible and considering the earnings the Japanese Nikkei made in January and its 0.5% GDP growth for January it is very possible Japan could hit that 2% number sooner than later.
The Great British Pound made gains almost across the board against other currencies in a long, gradual uptrend for the month of February. The UK’s fourth quarter GDP estimate was left unrevised at 0.5% growth after a stronger than expected increase in exports offset by a quarterly decline in investment as capital spending in the oil sector began to diminish and the overall impact was limited. Until the Euro-zone begins to strengthen the Pound will continue to gain support.