Fall of the managed accounts running at 3TG Brokers
I have not seen such a big and broad fall so far. The 5Gulden, Perfecto and Anmaric accounts made -60-80% loss on June 24th.
I cannot comprehend what happened, because this does not fit into the thinking of a professional trader.
- Why did they let the systems trade at the time of Brexit?
- Why were they not supervised, at least in such a critical period?
- Why did the capital protection not come into effect?
- Why did the robot trade at all at night, when it was not typical of it?
- Why did the position size increase during the decrease of the capital?
Lots of Whys. I sent my questions to the account manager companies and to the brokerage firm as well. I did not get any answer, I can only report about the announcements issued by them:
Anmaric Account Manager
In the recent update of the trading software – the aim of which was more aggressive trading – an error got into the algorithm, which caused a large number of positions. Unfortunately, they did not notice this immediately and Anmaric therefore takes the responsibility. They suspend their trading activities and operations.
Perfecto Account Manager
They write in their announcement that they do not understand why the systems of the agents who handle the accounts crossed the already well-established stop-loss levels. They are waiting for their response regarding the errors committed in the account management. Also, they are waiting for the answer of the brokerage firm how the systems could cross the security levels included in the contract (POA) and what do they plan in order to handle the evolved situation. (As far as I know, the security levels are set by the brokerage firm during the parameterization of the MAM system).
5Gulden Account Manager
Until writing this newsletter, I did not receive either a personal response or an official communication from them regarding what happened.
3TGBrokers – the brokerage that handles the accounts
The trading right of the account managers was suspended. They gave a statement later on that this event caused such a loss to them that they can no longer economically continue their operation, so they close down. Everyone should ask the remaining money back.
So, there is no trading on the accounts currently and it is worth to put the remaining funds to a safe place.
I am confident that this process will be conducted smoothly.
These events have resulted in quite a lot of unanswered questions and I suspect not only negligent treatment but also that this was committed intentionally.
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