The Terra/Luna crypto crash final month noticed Full Velocity’s bot generate 90%+ losses for associates.
Regardless of being marketed as having the ability to “thrive in unstable markets”, when an precise unstable market got here alongside, Full Velocity bot accounts have been promptly liquidated.
Now founder James Ward is again with a brand new bot.
Initially scheduled for launch mid-Could, Full Velocity’s new bot wasn’t accessible till the top of the month.
Ward appeared on a June third webinar to promote Full Velocity’s new bot to present associates and potential traders.
Full Velocity’s unique bot used what Ward refers to as a “hedge technique”. Fast to distinguish the brand new bot, Ward claims the brand new bot is a “non-hedge stop-loss bot.”
If you have a look at efficiency it’s a stable performer.
It blows each side of actuality out the door. If you have a look at the inventory market, when you have a look at the banks, when you have a look at something like that, it is a phenomenal deal.
On the price aspect of issues, Full Velocity has dropped its earlier 30% price to 25%.
With out disclosing the brand new bot’s testing interval, Ward claims Full Velocity’s new bot “averaged 2.9% per week”.
The bot was working in the course of the Terra/Luna crash, purportedly producing 0.41% on the primary day.
Within the day we received liquidated I imagine this bot did 0.41% that day.
Naturally probably the most urgent questions is “what’s stopping this bot from getting liquidated?”
Ward’s reply to that’s much less stability utilization and cease/loss.
Steadiness utilization is how a lot of the accessible buying and selling stability the bot is utilizing at any given time.
With the unique Full Velocity bot, this skyrocketed to liquidation as market volatility grew to become too a lot.
Remembering that is simply testing, Ward claims that this time round;
We’ve put a number of effort into ensuring that, even within the worst case state of affairs, that you just’re protected.
The best utilization price that this particular bot has had throughout your complete testing time has been 7.3%.
Cease/loss has additionally been launched, aiming to cap investor losses within the occasion of one other market crash.
If one thing occurs the place this market goes uncontrolled, we would like a nuclear button swap that claims, “No, we cease. We won’t have any extra losses than that.
Full Velocity’s cease/loss is applied in two phases.
If total positions drop 12%, a pause is initiated halting all buying and selling exercise.
If that drops to fifteen%, all buying and selling ceases (presumably pending human interplay).
That is all in fact requires the crypto market to play ball. If trades drop increased than 15% in a single hit, losses may nonetheless be probably increased than 15%.
Nonetheless, Ward appears assured sufficient that, it doesn’t matter what occurs, associates will at all times be capable to withdraw a minimum of 90% of their buying and selling stability.
Within the worst case state of affairs thus far, that’s been examined on this bot, I’d have been capable of get 90% of my cash (out).
However what I believe that you just’re going to see, based mostly upon the historic worth and the historic motion of this bot and what it’s been capable of do, is I believe you’re most likely gonna see round that ninety-five, perhaps even ninety-six to ninety-seven p.c – of having the ability to get that again.
Within the Q&A bit of Ward’s webinar, this introduced up the query of profitability with restrictions in place.
How’s it potential to make vital earnings, when the common utilization price is so low at 2.9%?
To which Ward answered;
That’s an important query man, and I don’t totally have a solution to that – apart from the quantity of trades taking place inside this bot, versus the opposite bot, are most likely going to be about … 100 time extra.
The rate at which this bot trades at goes to be fully completely different.
I’d have thought extra trades makes it harder to juggle the whole lot – however with out Ward disclosing additional details about Full Velocity’s new bot – that’s not potential to confirm.
Which brings me to Ward’s closing pitch;
If you happen to knew … you had entry to your earnings any time you wished, you possibly can take your commissions any time you wished, you possibly can take your principal any time you wished, figuring out that hey traditionally, worse case state of affairs I’d get 90% again – that hopefully provides you a bit of thoughts.
In my thoughts that is likely one of the largest promoting options of what we do.
Personally talking, what would give me peace of thoughts is figuring out Full Velocity has glad regulatory necessities and is working throughout the legislation.
Securities fraud was a serious downside with Full Velocity’s first iteration, and also you’ve seen how that performed out.
James Ward and Full Velocity are based mostly out of the US, Alabama to be exact.
Full Velocity’s passive “2.9% per week” funding alternative constitutes a securities providing. This requires registration with the SEC, together with full disclosure concerning the bot.
Neither Full Velocity or James Ward are registered with the SEC. Neither is any verifiable details about the brand new bot disclosed.
Who made it? Offering shoppers with an audited buying and selling historical past. How lengthy has the bot been in use for and below what situations?
Occurring YouTube and stating “2.9% per week on common” isn’t adequate. Neither is it authorized.
As a possible investor, that’s what’d give me peace of thoughts.
Even when we put legalities apart (which you completely shouldn’t); Crowing on about your new bot being “phenomenal”, lower than a month after your first thriller bot had a meltdown, isn’t convincing.