One full year has passed since the launch of BSL.
All the numbers are out there in the BSL page so I will write something about how I get here and how I think and hope that things will turn out in the next year.
First of all, we are still in a little DD since 25 of April when EurUsd started a big down trend that caught me in the middle. In the underlying account (UA) that high is history as you can see:
I must analyze what happened to prevent that in the future there will be something like this. There are three aspect that led to that DD and to this suboptimal rebound:
1) a very low VAR (7%) before the start of the DD
2) too much contracts always taken overnight (10) that caused the VAR to rise over 20%
3) big error in not seeing the trend clearly going down
So, what I'm going to do with this error? I have figured out a way to help preventing this to happen again:
1) I will not let the VAR going below 10% again or if that happen I will not use the full capacity that I have set (10 lots of 0.01 for every 1000€ in the account, up to 12 in intraday)
2) and 3) I revised my method and now I have a clever and clear way to identify the possibility of the start of a new trend so if this is the situation I will reduce the exposition to at least 6 lots (at least = I would probably even reverse all the position!)
I think that in this way the results will be more alligned with the UA.... that said I'm quite satisfied with what was accomplished but there is a little remorse for those investors that lost money during the DD: I think that when you invest in a Darwin an investor must have a plan that is different from simply buy and place a stop loss. If a darwin is worthy of my investment I should surely place some security belt (the first is the darwin manager remember!) but it can't be to simply get the car to the junkyard at the first accident. Reduce the investment is the first think I can think about, exit with all but being ready to rebuy if the situation change: this are two simple methods that can help to avoid to sell just near the low.... Even considering a "time stop loss" is another way (if the DD is >10% and is passed more that 3 months....) ....
I'm writing this because I firmly belive that a successful darwin is not only one that achieve the maximum gain with the lower dd but is one in which the investors manage to profit most and to be able to do this there must be a comunication with the trader that lead the darwin.
I've written very much, I hope that this will help those who want to invest in my darwin, to profit from it. Looking forward to make some decent gain in the next months!
Invest for long term, invest safe!