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BFA - Introduction to spesindex

Hello traders and investors,

This is Aaron. I’d like to introduce our Darwin BFA here. Hope this could help you know more about us and understand our trading strategy.

About us

I started trading while I had my master course on Investments in 2010. Yes, I’ve had nearly 10 years’ trading experience, good and bad, but I never gave up on trading. I learned a lot from different tutors and successful traders in early years of my trading career, and combined them to build my own trading system. In 2015, I started my proprietary trading business SPES in Forex market, and in 2019, the business expanded with partners being involved in. Now the team has three members, I am the main trader on FX market, a main trader on stock market and a risk manager. We expect to expand the team in the future with our managed funds grows.

We all think the Darwinex platform will be a good expansion to our business so in July 2019 we launched our Darwin BFA, which also could be seen as the index of our business, so we call it SPESindex.

Trading system

I trade manually on most major and minor FX pairs plus Gold and Oil based on a trend following breakout strategy. At the beginning of every trading day I use 3 time-frames to determine the trend (D-H4-H1 or H4-H1-M15) and take the trade based on my open strategy in lower time-frame. In most of times the position will be closed in the same day or within the week. I try to avoid holding position in the weekend. Generally speaking I have a relatively higher standard on an entry so I may not take a single trade on several consecutive days and I may miss a good entry or even a trend, but never mind, opportunities are always coming in the long run.

Return Target

We aim to achieve an average 3%-5% growth each month, which gives an annual return around 40%-80%. However we will always consider potential risks ahead of returns. We’d like to achieve a consistent and steady growth with a low drawdown. We aim to limit the drawback under 10% but market is unexpected, so we set the drawdown red line on 20%.

Risk Management

I have rules on risk management to follow and each trade is monitored by the risk manager.

  1. Only risk 2% of equity. Before I take a trade, I’ll use risk amount and stop loss to determine the trading volume. Normally I use only 1% of the equity as the risk amount but if I think it’s a very good opportunity I could use no more than 2% of the equity. It is definite that each trade comes with stop loss, otherwise I cannot calculate the trading volume.

  2. Avoid weekend position. I try to avoid holding open position during the weekend as the slippage may bring unexpected loss. I may hold the position during the weekend if it is in large profit and the price is far from the BE point.

  3. Number of positions. Normally I only hold 1 or 2 trades at a time. I will only take one trade or two trades with half risks for relative pairs, like EURUSD&GBPUSD or GBPAUD&GBPJPY.

  4. Leverage used. Normally 3-10 times leverage will be used depending on the stop loss. If the stop loss is extremely small, like 10 pips, I’ll reduce the risk instead of using higher leverage.

Hope the information above could help you understand our trading system. Any questions are welcomed and I’ll try to answer them here.

I’d like to appreciate our current and future investors. Let’s grow together.

Kind regards,
Aaron

6 Likes

Very nice curve. Welcome to the community.

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Welcome. I am afraid you will put too much pressure on yourself with number 40-80% anualy what could cause disaster in the future but who knows. Wish you luck and strong nerves :slight_smile:

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Thanks for your advice.

40%-80% is a target only and certainly I won’t promise my investors to achieve that in every 12 months. There’s enough pressure for a trader so no need to make more of it indeed.

With 1%-2% risk you only need 1 or 2 profitable trade to get 3% return per month, and 3% monthly return will make a compound 40% annual return. I believe it’s a reasonable and conservative target.

We will try to achieve that but, of course, risk management comes first. :grinning:

Is your website a recycling product?
grafik

I don’t know any relation between Darwinex and any Alpari company. Did I miss something?

There is no relation between Darwinex and Alpari. We used to trade with that company and after its UK company collapsed some clients of us moved to it’s parent company. It’s the best company offering money management service at that time.

From last year we recommended clients to use FCA regulated broker and we manage their account directly. Also we started to build our own Darwin from that time. I’ll let my colleague update the website asap. Thanks for reminding. :sweat_smile:

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when is the main trader on stock market going to take a trade? so far only currencies have been traded.

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Thanks for asking.

This Darwin only trades Forex, Gold and Oil (very rare, as oil prices are different on different broker, I can’t easily manage them all), which is mentioned in the Trading System part.

My partner does trade Chinese Stock market which is another part of our portfolio.

Personally I have no experience on trading stock so there is no plan to involve stock/index trading in this Darwin.

Hope this answers your question.

3 Likes