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Chita's Portfolio. Follow up thread

Not happy at all with my behaviour… Implemented a set of simple MM/Behavioural rules:

  • Resized accounts to £1000
  • Fixed lot size of 0.01
  • 0.01 lots traded per £500, i.e. I will keep open max 0.02 lots at the same time
  • Maximum loss per 0.01 lots trade is £20 (2%)
  • Seek only 2x or higher RR trades
  • Only trade forex pairs, swing trading, under controlled scenarios with fixed SL
  • TPs can be taken early, if the Rr is at least 1.5 (but that implies the trade is over for that scenario)
  • Only place conditional orders and wait.
  • Deleted MT4 from my smartphone. Only trade at home, from my laptop

The goal this month is to be loyal to this set of rules.

See you in one month :wink:

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One month later… It feels more like 3 months passed, buth only one month :slight_smile:

What happened:

  • After violating many of the rules above, I decided to close my trading accounts and forget about the forex market for a long time. It is not working, it takes too much effort, it’s too difficult and drags me too much to the wrong habits.

  • I started trading stocks. Pure trading in traditional stocks, no leverage, no CFDs. There’s a nice bullish market out there with hundreds of stocks in the US, Germany, UK, etc either making new highs, breaking through, or in support levels. I am open minded and everything could change in a few weeks, but what we have now is a cake.

  • I have decided to keep my Darwin portfolio and regard it as a very conservative asset, I want to keep an eye on them and move the money from stocks to Darwins, if the bears get stronger.

So far the profit of my investor account is 2.5% in about 5 months. Not bad if keeps the pace and returns 5-6% in one year without much suffering.

My portfolio changed a bit. Had to close OPK (I am sorry, but the LA and RS score deteriorated too much)
Had to close XIN as well (I regret a lot having invested on this Darwin, not much more to say…)



The divergence is not very well balanced, I probably will have to adjust my portfolio… Honestly, I am not doing much effort on this, just a peek every other day and closing Darwins with deteriorated scores…

And that’s all, see you in a month

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It is not so difficult to make money with stocks in a bull market, problems start when the selloff begins and everything falls by 50%.
Your is the right approach, with darwins you are investing in trading systems renting them from other people.
I think your current portfolio will return much more than 5%. :wink:
About XIN you dont’ have to blame yourself, it was impossible to predict that blackswan after 3 years of trackrecord.
Keep on!

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Yes, investing in the SP500 on the long term is great only if you are able to step out and not get caught in one on the historic bear markets (when DDs go from 25% up to 80%). Not easy

About XIN, totally a black swan, that guy had around 80 DS for a long time… I guess it is too difficult to control everything and make a system able to detect the trader’s behaviour and preemptively reduce the score soon after the trader starts to fail/gamble.

And now, to be fair with Darwinex, average yearly return of the SP500 is around 10%, but with terrible periodic DDs, aka bear markets. Getting that 10% in Darwinex without that big periodic DD, in products highly uncorrelated is great value. Let’s see if I can do it :relaxed:

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More than on month later…

About the portfolio, main highlight is the DD in PRZ. JGC has ben losing, specially the last week, but not even close to PRZ’s DD. RWL, NTI also still down.

On the bright side, LVS/BDR have been doing a lot better.

Performance fees have been taken from the account, lowering the profit even more because some Darwins went donwhill after the fees were paid. Well, at least when the Darwins recover I won’t have to pay more fees.

So, more than 6 months gone. The performance peak has been around 6-7%, the low has been around -1%, and right now the profit is just 1.5%

I am following a buy&Hold strategy, it makes no sense for me to trade Darwins, I think the risk of ruin is quite low in Darwinex, but also the performance is not great so far. On the happy side, I am more and more convinced of how honest the Darwinex team are, and how seriously they take to deliver a revolutionary product…

I have bee learning a lot since I joined Darwinex, and I am starting to use another interesting options for long term investing, that I will use as benchmark.

I will keep my portfolio, at least one year, and after that if nothing catastrophic has happened, will keep the portfolio another year. So 2 years in total. After that, will compare Darwinex with my other investments. I think that will be enough to get an idea of how good is this. Hopefully Darwinex will improve even more in this time.

Besides that, I returned to trade on my Darwin VER. As per the description: “Minimum maintenance swing trading on daily and weekly TF. No news, no noise, small size and big SL/TP. Martingales, grids and any kind of “cleverness” are absolutely forbidden. Two Principles: 1)Be Patient 2) Don’t do stupid shit”

I am very happy because I am following the guidelines, I read the scenario, open the trades, set the SL and TP and the I don’t give a s**t anymore (pardon my language) And it feels great.

It makes no sense for me the forex market/leveraged assets. Too dangerous, too difficult, too easy to lose control. I am turning to traditional assets, only long positions: ETFs when the stocks are trending, Bonds in bear markets. That’s all.

I will keep trading in my £500 forex account, just in case I can setup some simple strategy based on big, trend follower swings. I will consider a success if VER is still alive after 2 more years :slight_smile:

See you next month…

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Update one month after.

November was a bad month but December so far is being awesome.

My apologies but I realised the way of calculating the return/time is not very accurate. Since I started I have been growing the assets invested, so the return at any give moment is not the actual return of the portfolio. To be clear: I just divide today’s accumulated “net money in” by the (“Equity” ± “Available to invest”) values, i.e. I don’t include any timing consideration. Today’s return would be 3.56% (great improvement on past reading of 1.5%)

This is just an estimation. The total return after liquidation can be different. For example my THA Darwin returns now 21.80%, but also has in my current portfolio a huge divergence of -5.75% :cold_sweat: Also, because performance fees for many of my Darwins have been paid unfortunately in “peaks”, there’s room for the return to improve a lot when those Darwins recover and go above their watermarks (if I have understood well how this works), as that recovery will be “free” of performance fees.

This is my portfolio return as per dashboard information:

And that’s it. Hope in a couple of months the return will be great :slight_smile:

PS: adding my portfolio composition. Note the great divergence on THA and the huge Drawdown I took on PRZ

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I see a huge DD on RWL not on PRZ

To be fair, both PRZ and RWL

PRZ was 18% up and now is -3% (and has recovered lately)

Probably I forgot to mention RWL because it has been always in a loss and psychologically is more painful to go from huge profit to small loss, than form small loss to huge loss :frowning:

Anyway, I trust more PRZ. RWL has already setup a stop loss, and maybe it would be better if it triggers the SL and I get rid of it

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Hi @Chita
Any updates on your portfolio?

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Hi Caballero :slight_smile:

Not too much, RWL is out and QUA is in

This is the evolution of the portfolio,s return:

Since January it went down again (BDR and LVS had their classic January pullback and I did nothing to avoid it, and THA is kind of lagging a bit) and today the return is around 1.5%

I am not following it with great passion, to be honest.

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Another small change: PRZ out, STV in

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There was an error in my previous calculations. amended now. The return was a bit higher actually.

But the portfolio is in a loss now. In general, many darwins went down the past weeks. I’ve taken some damage because of the GBPUSD strength as well. Hopefully there will be some kind of mean reversion next months and the portfolio will be back in profit.

I have been refining my portfolio these months, my Darwins tend to yearly returns of around 20% on average. I have now setup SL for my weakest Darwins and will re-balance the portfolio to the stronger ones if I get stopped out. You get a bit excited when you see some Darwins having yearly returns of 50% and so on in the past, but you have to be aware that it is not so easy, there are huge divergences sometimes, there are performance fees, there are the usual DDs, sometimes in concurrency…Don’t guess and just record and observe the facts. Will keep posting every month and let’s see where we are in one more year.

And my Darwins list:

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Nearly 13 % divergence on THA? Is that increasing from day to day, week to week and month to month or was it built from a few horrible trades?

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HI @Chita,
i wish you all profit possible to your investment, and very happy here, how a “insignificant” PGH, less invested, if I’m not wrong worst D-Score, etc… at least is 3 best in divergence and profit in your portfolio…
all the best to you, and thanks for invest on my darwin.
OldSchool

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Divergence matters but it’s not the first concern.
The priority is finding mature traders that are able to beat the market for years without going crazy and do some bullshit.
Then it comes divergence.

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PGH has been there from the very beginning and never game me any trouble. I wish all my Darwins were like this (probably I was lucky not getting in when it had that 30% DD, hehe) What I like of PGH is the long track record and the ability of recovering from such a large DD. Hope it doesn’t happen again :wink:

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9 posts were merged into an existing topic: Capacity Investable Attribute (former Scalability)

Update. This started on August, so we are closer to one full year invested in Darwins

Since last update, sold THA and added more STV and PGH so I only have 9 Darwins now. The plan is to reduce the list

And the return:

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Have you considered reinvesting the profits of each Darwin by doing sell&buy?

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What do you mean Aimak? To trade the Darwins instead of the Buy&Hold approach?