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CavaliereVerde's live portfolio

I wanted to create my live investor portfolio as well however few days ago I found out that Darwins who have been here for a while like KVL, NTI and new one YZZ are nicely negatively correlated with my trading account. (I compared whole period of existence month by month)
Just a question. Wouldnt be more usefull to pick up 2-3 Darwins who we trust and are low or negatively correlated towards our trading account and use it as diversification? (instead of building huge Dawin portfolios)
What do you guys think?

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This is what I am doing with the “core” portfolio.
IMO what make the difference is the degree of knowledge and trust in the stuff you are investing.

YZZ has an impressive trackrecord and recent returns are above average.
Now let’ suppose it goes on stagnation for 11 months, like it happened from september 2017 to august 2018.
Are you ready to endure it? Without knowing the trader or the strategy?

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Well, it would depend on how long is trackrecord of history,
if recent DD is in range of previous ones, trustworthiness of track record - from which broker has been strategy imported (it would be great if we could see this actually)
and if it still behaves “normaly” and my strategy is still negatively correlated against darwin like before.
And of course knowing trader behind the strategy and strategy by itself increases investors belief tremendously.

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I want to make clear that I dont’ like to manage a huge portfolio.

I designed a new filter and new guidelines for 2019 and I am picking darwins following these.
The porfolio is expanding because I am not selling, I dont’ want to repeat the mistake I have done in Jully and September 2018 when I sold many darwins low.

Maybe many of my darwins arent’ performing so good but at least I can exclude they are scammers, what I am sure is that they are proving a good endurance.
Patience is always the key, they are enduring their trading and I have to endure them.

I want also to make clear that I dont’ like to lose money and the amount involved in this portfolio is relevent for my wealth.

So in the following months I will downscale the portfolio, it will be necessary to:

  1. reduce the losses
  2. upscale my trading
  3. pay taxes
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What do you now see as an optimum number of Darwins in a ‘diversified’ portfolio?

Thanks.


10

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I don’t think this is important for the case of YZZ , the return of the year with native trackrecord is higher than the previous year and the shape of the chart is the same.

I see nobody answered your post,so I took a look into DLF.
Your rule about investing only in traders that you know and are reachable on this forum for explanations would come handy in this case.
When I saw “the engine” of this strategy and also persistent,brutal DD,I told myself: this is not work of a human being,it must be a machine.Than I saw in his profile 16! darwins and nothing on the forum…This guy simply over-optimized his algo and had wonderful two years(who knows how many algos he discarded before that and migrated the lucky one),followed by equally disastrous one year.He got 1,5Mil. AuM and didn’t say a word on this forum about his trading and people thought that is a normal behavior?
Apparently he is hoping that Darwinex investors are gullible idiots who will happily invest in one of his 15 remaining darwins, when it starts performing again.
Your rule about investing ONLY in traders you know and have ability to ask anything BEFORE investing is worth to be Numero uno!
Other than that,hoping to find Algotrader who will outperform best Algotrading companies on this planet,who employ hundreds of top PhD,supercomputers and have privileged access to market,is fools errand.This guy sold a mirage to gullible investors.Only a very gifted human discretionary trader can do that,just as in Chess only top Masters have any chance against supercomputers.People thought he will be printing more than 50% each year?
Maybe Darwinex will be able to attract some of these very gifted individuals from poorer countries,but in the meantime investors here should be educated so that company doesn’t die before that day comes.
I have read many of your posts and Darwinex should be very grateful for your presence in this forum.

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Algo is just a tool, there are lot of decisions to take in algorithmic trading.
Systems that work are very simple, you don’t need a PhD and a supercomputer.
Clearly is much more easy to set up a trackrecord farm with algos, but there are also discretionary traders with tradecopiers and many accounts to set up their illusions.
It is always the man that make the difference, money and time belong to men.
A PhD and a supercomputer don’t help to endure stagnation.

Thanks for answer,I wanted to be concise as possible,so I will expand a bit in this post.
Systems that work can be fairly simple and accessible to individuals,but systems like Medallion fund are extremely complex and results are fabulous and regular.I bundled under supercomputers not only superior computing power,but also databases which are inaccessible to individuals.You didn’t notice"privileged access to market" in terms of speed,data,spreads and commissions that are not accessible to ordinary mortals and their algos.Two Sigma,Renaissance fund…with their 50-100 billions AuM are very high on the market structure or “food chain”,while individuals are at the very bottom.
What man behind DLF achieved as an individual is remarkable but unsustainable.His behavior towards investors is deplorable.Alpari has a rule that every PAMM manager MUST respond to questions from his investors or his account can be suspended for new investments.

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I will continue the discussion on algo trading on my trader’s topic.

Going back to DLF , I think the trader is not a bad one, he was only taking advantage of the situation.
If you look to DLI you will find the same strategy with more sustainable and robust returns.

By the way you wont’ find bad trading on DLF , it is easy to state it was overfitted with hindsight.
Even if you force the traders to answer to investor it would not prevent them to write bullshit to impress dreamers.
Here you have a lot of answers:
NMM - Pedroml
I agree with you the problem is that the quality of investors is very low.

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Isn’t that unrealistic ? Many investors do not behave. I’d hate to see such enforcement because outside of core business focus (trading) when human ressources are low… communications should only happen on a good will basis, no ?
Regarding more traditionnal investments, you generally can’t reach to the operators of the vehicles you invest in. At best, you can exchange with other users through a dedicated media channel if lucky.

If too demanding investors, I’d ask them if they prefer results or talk ? Get in my shoes or take my place.
In case of investors acting as ennemas, I actually wish there was a function to kick ban their AuMs, much like real world businesses do turn down customers in practice. Because pressure and poor atmosphere could lead to damage to the rest of the group of investors.

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Yes you are right,only common sense approach could have saved investor from this disaster-reasoning I presented in first post-the thing was too good for individual algo trader.

Yes,I have witnessed many dramas because of that.Nervous breakdowns of traders,investors,threats,interfering into trading…

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Indeed, I know personally a succesful money manager (initially in Switzerland) which was managing a desk of traders for a fund, who quit mostly because its life became hell due to investors putting too much undeserved stress on the operations. He then chose a more reclused life (still trading).
Moral of the story, never give away a phone line to answer too personnalized queries, you’ll regret it :wink: consider shielding yourself, maybe even not reading comments / feedback at all

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Many people getting into OPM business are not aware of these problems,but investors also have their rights and interests.It is difficult balancing act.

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Realistic expectations can save you from losing.
Knowing the trader and his professionalism can help a lot.

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Trading without SL produces such situations from time to time.
Here is an excerpt from his FIRST post and introduction:
“How to defend against randomness and unbeatable machines ?.
My weapons are two: the low leverage and the high margin in the account.”
That was right there in people’s face.He admitted he didn’t have real traders edge and he traded without hard SL.He was a gambler/statistician,not a trader in a true sense.

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If the problem were too many algos and too few communication eToro would be the paradise of investing.
Six years ago there were a lot of guys that claimed to be gifted, many prophets.
Now it is better but there is much more investable stuff here.

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That is why I admire your work here in this forum,you provide a great service to community and Darwinex platform to inform and educate people.I am sorry that some older members have left,they were good people and forum would be much richer with them.

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