The term “Black Swan” was thrown around with gold today. Supposedly, the Chinese are going to stop buying gold. While the two companies I use that provide gold trading bots won’t tell you what to do, they don’t give many choices. With little upside potential, I have decided to eat the present loss. I have turned off my Precision bot with a substantial loss. The Gold Digger bot lost a small amount on one open trade. This, coupled with my loss last week when the drawdown max was hit with Aviator, does cause concern.
How can I redeem these losses?
- Stay on top of the recommendations from the bot suppliers. NURP uses a web-based program called Circle, which I monitor regularly. University of Options uses Telegram. Before today, I did not monitor this Telegram channel regularly. I had missed a video from a month ago that showed how to change the settings to the new recommendations for Precision. I don’t know if this cost me money, but I should have made myself aware.
- Bots that trade one pair have much more risk: I have enjoyed the regular gains Precision has provided since I dealt with my over-lot-sizing issue. It made a few hundred dollars a week without complaining. Gold Digger has also made many good trades. Sometimes, it is up over $800 in a day. But, when it misses a trade, it takes a lot of drawdown to salvage it. Precision is solely responsible for its account. Gold Digger receives support from The Fed in growing their shared brokerage account.
- When in doubt, go for consistency: Even with a black swan event, I must look long-term. I cannot let myself make choices that could jeopardize my monthly goals. I need to choose well, whether it is smaller lot sizes or other greed-motivated choices.
After having a “black swan” and a drawdown loss this month, I have learned a lot. I know other lessons await. I hope I don’t suffer additional losses due to identical mistakes. Too many repeated mistakes, and I may have to reevaluate my bot farm. At the very least, I may decide fewer tractors are better.
