Gas Algorithms Pull Back as Mideast Truce Returns Risk-Off Mood

Traders relying on trend-following algorithms are pulling back from the European gas market, exacerbating the risk-off mood in play since US President Donald Trump announced a ceasefire between Israel and Iran.

Algorithm-focused funds known as commodity trading advisers, or CTAs, flipped from +9% net-long to a -18% net-short position on Tuesday, amplifying the selloff in Dutch front-month futures, according to data from Bridgeton Research Group Llc. CTAs — often an early indicator to the market’s mood — tend to intensify price moves in both directions, making it harder for traders with physical exposure to navigate the market.