In the beginning of the pellet revolution it was thought that in order to bring down both nitrates and phosphates, you needed to remove the GFO. This allowed the pellets to be colonized by bacteria that consume phosphates, or so was the theory. We have now come to realize that the two are linked in our systems. If you are adding phosphates at a rate greater than the pellets can remove, while they are removing nitrates, then the system stalls at some balance that is higher than we would like. It basically maintains the balance at the phosphate level of input.
I'm not sure scientifically what is going on, but to make a long story short go back to using GFO temporally and your nitrates will again start falling. Once your phosphates are down, the nitrate will come down and a new lower equalibrium will set in. The long term problem seems to be keeping the phosphates down so it doesn't creep up again. I am back to running GFO 1/2 of the time. Basically, two to three weeks in, two to three weeks out. This gives me time to run carbon in between.