Blackwave Pacific Hedged Discussion

November 1% so now we enter December with capital up 25.13% YTD and four weeks to go. When we look back on the year it will have been good I think. I am happy enough with 25% so everything else is just Christmas cake from here on. Once trading remains stable and slightly boring then we are managing capital the way it should be managed. The EA's are sitting in the long grass waiting as always for either an entry or a TP. Welcome to my clients in the process of setting up and/or transferring money in. I said to a client last night and it's true for us all "think about what your objective is for the money. If you’re clear on what you want it to achieve — growth, income, a future purchase, or simply building capital — it usually becomes much easier to know what level you really want to invest. Confidence plays a part, of course, but clarity of purpose normally makes the decision obvious."

Looking ahead, December is usually a quieter month — thinner markets, fewer trading days, and a general winding down across the industry. That suits us. Stability is the goal. Boring is the goal. We’ve had our strong periods this year, some dips, some recovery, and now we’re in that phase where good stewardship matters more than anything dramatic.

The systems are doing exactly what they’re built to do: wait. They step forward only when the conditions line up and they step back when the market isn’t offering clean opportunities. It’s the same discipline I want the wider portfolio to reflect as we close out the year.

To those setting up new accounts or transferring funds in: welcome aboard. You’re joining at a clean point in the calendar.

As always, I appreciate everyone’s trust. Let’s finish the year quietly, sensibly, and with the confidence that 2026 will give us new opportunities to build on what we’ve done.

Weekly Trading Update – 2025 Capital Growth at 25.52% With Three Weeks to GoWith the latest numbers in, total capital growth for 2025 now sits at 25.52%, and we still have three weeks left in the calendar year. I’m very happy with the performance — not just the headline figure but the consistency behind it. These gains compound meaningfully over time, and the real power of the strategy is revealed not in any single month, but in keeping this rhythm steady month after month.

For context:

AIB’s 30-day notice deposit account currently pays 1.5% per annum.The S&P 500 has gained 13.8% since January 1st.Against that backdrop, a steady +25% year — delivered with managed risk and a fairly controlled drawdown — demonstrates exactly what disciplined, rules-based trading can offer.

 A Clear Trading Structure Now in Full FlowI’m also pleased with the rollout of the dual-engine Blackwave strategy, which is now operating exactly as designed.

Here’s the simplified overview:

Formalised hedging begins automatically at 8% drawdown.Hedges open and close gracefully, adding incremental gains that strengthen both equity and balance.When drawdown naturally eases below 6%, the hedging engine steps back quietly, leaving no footprint behind (except more money).It’s a light-touch system — simple in concept, elegant in execution, and extremely effective over long horizons. It’s a powerful shield against flash crashes by building equity before and during the crash. Many powerful ideas are deceptively simple, and this is one of them.

What matters most is the behaviour of the system: it does its work quietly, it protects capital when needed, and it enhances compounding without disrupting the main strategy. That “main strategy” has built a lot of wealth even before this new shield was invented.

 Compounding Is the True DriverA year like this reinforces a very old lesson:You don’t need fireworks — you need consistency.

If this level of output continues, the compounding curve becomes very meaningful:

25% per year for five years is not 125%.It’s closer to ~3× capital, depending on deposits and timing.This is why my focus stays on stability, sustainability, and quietly repeating the same behaviours every week.

 Looking AheadWith three weeks left in 2025, the priority is unchanged:

Keep trading conditions stableMaintain low-impact, disciplined risk managementLet the engines workAvoid unnecessary changes or excitementIf we simply continue as we are, compounding will take care of the rest.

We close out the week with total capital growth now at 25.92% for 2025 YTD, and trading has remained steady throughout. The EA’s have been at work across a couple of pairs — GBPUSD and CHFJPY — taking clean, system-driven entries and exits. Nothing dramatic, just the kind of disciplined activity that keeps the equity curve moving in the right direction.

The focus, as always, has been controlled exposure and patience.

 AUDCHF – Patience, Endurance and Positive SwapsThe long-running AUDCHF position continues to play out. The pair is currently sitting around 0.5300, after reaching as high as 0.5380 during the week.

Our goal remains the same:Take profit somewhere above 0.5400, supported by the massively positive SWAPS working in our favour every single day.

This one has required endurance. It has tested patience. But structurally, nothing has changed — and the positive carry means time is on our side. Hopefully the finish line of this trade is now coming into view.

 Overall ToneA steady week, controlled trading, and continued progress.If we keep this rhythm into year-end, the 2025 numbers will close out exactly the way we want them to.

Weekly Trading Update – 19 December | Capital Growth, Risk, and PerspectiveAs at 19 December, performance stands at 26.48% capital growth year-to-date, with December currently up 1.08%. With the festive period approaching and shortened trading weeks ahead, market participation will inevitably thin out as many desks close until January. That said, I remain attentive where required — and of course, the Expert Advisors continue to operate without emotion, fatigue, or distraction.

What continues to stand out is the robust EA architecture now in place. In fact, I am quietly looking forward to the demo account eventually reaching an 8% drawdown, should that occur. Why? Because it provides a clean, real-world demonstration of the H4 Guardian hedging system doing precisely what it was designed to do: protecting equity decisively during stress, and then stepping away completely once drawdown reduces below 6%, leaving no residual exposure or footprint.

This type of dynamic risk management is where modern algorithmic trading separates itself from older, more rigid approaches. The work behind these systems should not be underestimated. They represent over ten years of manual trading experience, refined through live markets, pressure-tested by loss, and now reinforced by AI-assisted code review and structural safeguards. Forex trading remains risky — but risk is not something to be eliminated. It is something to be engineered, controlled, and rewarded. Then turned into real assets.

To put risk into proper perspective, consider a simple example. Imagine a $1 million MT4 account trading EURUSD at 0.01 lots, with a maximum of ten positions (grid) open at any time. Your maximum exposure would be $10,000. You would only lose that if EURUSD went to zero — literally ZERO! and that would be a 1% loss in your million dollar account. To lose the full million dollars, that scenario would need to occur one hundred times. This is why blanket statements about “trading without stops” being inherently reckless often amount to little more than repeated platitudes. In reality, position sizing — not slogans — defines risk.

AUDCHF has once again tested patience this week, moving close to profit before retracing. That is naturally frustrating. However, the broader technical structure remains constructive, with higher highs and higher lows forming on the weekly chart. A measured move above 0.54 remains very much in play, and it’s worth remembering that this pair traded at 0.57 this time last year. Markets, like trains, tend to revisit familiar stations — provided risk is managed well enough to stay on the journey.

Finally, as this is my last weekly update before Christmas, I want to wish you all a happy Christmas. It can be a difficult time of year for many families, and if that is true for you, I particularly wish you peace and goodwill over the coming weeks.

And, in the spirit of honesty, I’ll wish for you what I will also wish for myself:more money, and perhaps the gradual transition of riskier forex exposure into stable, long-term assets in 2026– once again!

As ever, the work continues — quietly, methodically, and with discipline.

Merry Christmas.

Gary

Weekly Update – Building the CircleGood morning,

As we move toward year-end, we currently stand at 26.63% capital gain for the year, with three effective trading days remaining before markets pause again for New Year’s Day.

It’s important to be transparent: open positions are carrying a 10–12% drawdown, which places current equity growth closer to 15–17%. That still slightly outperforms the S&P 500, and—more importantly—there is every chance that capital gain can convert into realised equity given the time required for the strategy to fully play out. Patience remains part of the process.

If you’ve been following me for any length of time, you’ll know I have a very clear priority for 2026:to add another apartment to the Bluewave portfolio.

A few weeks ago, I took €14,000 of Airbnb income and added it directly to my trading capital. The reason is simple: the larger the capital base, the more of the heavy lifting is done by time and compounding, rather than effort.

In Dubai, apartments are typically purchased using state-backed developer payment plans. You might put down roughly 24% in the first 60 days, followed by 1% per month, with occasional larger instalments. For off-plan properties, handover is often 2–3 years away, after which the apartment can go straight onto Airbnb and begin earning its keep. The entire purchase can usually be completed within eight years.

At that point, Bluewave owns another small square on the Monopoly board — one that pays rent every time we pass go.

This idea ties directly into Episode 8 of the Blackwave Mindset podcast, where we discuss what I call the circular system:

Blackwave grows capital through forex tradingThat capital is used to acquire real assetsThose assets generate predictable cash flowThat cash flow can then be reinvested back into BlackwaveRound and round we go — deliberately.

It’s the same principle described in The Richest Man in Babylon:make each gold piece earn, and let its children earn, and its children’s children earn.

This is not about chasing trades. It’s about building a system where money works harder than you do.

If this approach resonates with you, I’ll be opening space for new investors in 2026.The minimum investment is €10,000 — not out of exclusivity, but realism. Anything less is unlikely to materially change your life or mine.

As always, thank you for your continued trust and patience.

— Gary