The Terra/Luna crypto crash last month saw Full Velocity’s bot generate 90%+ losses for affiliates.
Despite being advertised as being able to “thrive in volatile markets”, when an actual volatile market came along, Full Velocity bot accounts were promptly liquidated.
Now founder James Ward is back with a new bot.
Originally scheduled for release mid-May, Full Velocity’s new bot wasn’t available until the end of the month.
Ward appeared on a June 3rd webinar to sell Full Velocity’s new bot to existing affiliates and potential investors.
Full Velocity’s original bot used what Ward refers to as a “hedge strategy”. Quick to differentiate the new bot, Ward claims the new bot is a “non-hedge stop-loss bot.”
When you look at performance it is a solid performer.
It blows every aspect of reality out the door. When you look at the stock market, if you look at the banks, if you look at anything like that, this is a phenomenal deal.
On the fee side of things, Full Velocity has dropped its previous 30% fee to 25%.
Without disclosing the new bot’s testing period, Ward claims Full Velocity’s new bot “averaged 2.9% per week”.
The bot was running during the Terra/Luna crash, purportedly generating 0.41% on the first day.
In the day we got liquidated I believe this bot did 0.41% that day.
Naturally one of the most pressing questions is “what’s stopping this bot from getting liquidated?”
Ward’s answer to that is less balance utilization and stop/loss.
Balance utilization is how much of the available trading balance the bot is using at any given time.
With the original Full Velocity bot, this skyrocketed to liquidation as market volatility became too much.
Remembering this is just testing, Ward claims that this time around;
We’ve put a lot of effort into making sure that, even in the worst case scenario, that you’re protected.
The highest utilization rate that this actual bot has had during the entire testing time has been 7.3%.
Stop/loss has also been introduced, aiming to cap investor losses in the event of another market crash.
If something happens where this market goes out of control, we want a nuclear button switch that says, “No, we stop. We will not have any more losses than that.
Full Velocity’s stop/loss is implemented in two stages.
If overall positions drop 12%, a pause is initiated halting all trading activity.
If that drops to 15%, all trading ceases (presumably pending human interaction).
This is all of course requires the crypto market to play ball. If trades drop higher than 15% in one hit, losses could still be potentially higher than 15%.
Still, Ward seems confident enough that, no matter what happens, affiliates will always be able to withdraw at least 90% of their trading balance.
In the worst case scenario so far, that’s been tested in this bot, I would have been able to get 90% of my money (out).
But what I think that you’re going to see, based upon the historic value and the historic movement of this bot and what it’s been able to do, is I think you’re probably gonna see around that ninety-five, maybe even ninety-six to ninety-seven percent – of being able to get that back.
In the Q&A section of Ward’s webinar, this brought up the question of profitability with restrictions in place.
How’s it possible to make significant profits, when the average utilization rate is so low at 2.9%?
To which Ward answered;
That’s a great question man, and I don’t fully have an answer to that – other than the amount of trades happening inside this bot, versus the other bot, are probably going to be about … a hundred time more.
The velocity at which this bot trades at is going to be completely different.
I’d have thought more trades makes it more difficult to juggle everything – but without Ward disclosing further information about Full Velocity’s new bot – that’s not possible to verify.
Which brings me to Ward’s closing pitch;
If you knew … you had access to your profits any time you wanted, you could take your commissions any time you wanted, you could take your principal any time you wanted, knowing that hey historically, worse case scenario I might get 90% back – that hopefully gives you a piece of mind.
In my mind that is one of the biggest selling features of what we do.
Personally speaking, what would give me peace of mind is knowing Full Velocity has satisfied regulatory requirements and is operating within the law.
Securities fraud was a major problem with Full Velocity’s first iteration, and you’ve seen how that played out.
James Ward and Full Velocity are based out of the US, Alabama to be precise.
Full Velocity’s passive “2.9% a week” investment opportunity constitutes a securities offering. This requires registration with the SEC, including full disclosure about the bot.
Neither Full Velocity or James Ward are registered with the SEC. Nor is any verifiable information about the new bot disclosed.
Who made it? Providing consumers with an audited trading history. How long has the bot been in use for and under what conditions?
Going on YouTube and stating “2.9% a week on average” isn’t good enough. Nor is it legal.
As a potential investor, that’s what’d give me peace of mind.
Even if we put legalities aside (which you absolutely shouldn’t); Crowing on about your new bot being “phenomenal”, less than a month after your first mystery bot had a meltdown, isn’t convincing.