If you have been following our news items here on the GalleoFX website you would know that we implemented some major changes in November 2006.  One is the more powerful and evolved Cannon 25 (C25) trading system.  The second was converting our C25 strategies from TradeStation 2000i to TradeStation 8 (TS8).  This conversion allowed us many advantages, one of which was to be traded at FXCMs trading desk for better fills, spreads and commissions.

On Januray 10th 2007, a problem was discovered with the TS8 Exits that were trading client PAMM accounts.  This includes 90% of our clients but still a lesser dollar volumn than our non-PAMM clients.

A problem was first  suspected at the end of November 2006 when 4 of our Euro positions were closed prematurely as the EUR reached new highs as compared to our non-PAMM accounts.   We initially attributed this to differences in the data feeds that were triggering the trades.   Then again in the first week in January we saw a recovery in the USD where our C25 systems captured nice gains in the USD/CHF pair but these gains were missing in the PAMM accounts.  After seeing this discrepancy again we immediately re-examined all possible causes.  This re-examination of the system trading the PAMMs this time revealed the problem with the default exit being used instead of the correct C25 adaptive exit.

Once the reason was confirmed we had the correct "exits" fixed and implemented within 24hrs.

Accounts outside of our PAMM accounts were traded correctly with the correct exists and saw additional gains. In some cases as much as 20% since the moves on these two occasions were significant.

Unfortunately our PAMM clients missed out on this additional potential profit that took place in the period of only 6 weeks. 

The good news is that the "exits" are fixed now and that C25 actually has more potential than what is apparent to our PAMM clients.

Watching C25 trade over the last couple of months validates the 12 years of back testing which show similar incredible results.  Now, with the latest changes and fixes in place we are more confident than ever with the long term potential of C25 being and look forward to a very profitable 2007.