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Chita's Portfolio. Follow up thread

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?

He wants to say to sell and rebuy the same portfolio, in this way open profit is leveraged at x2 .

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Ok, got it.

Yes, nice advice. Thank you both :grinning:

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One of the good things that I’ve learned in Darwinex is:

I will NEVER EVER try to make money again with Forex, Commodities, indexes or any other leveraged product. Just by seeing how difficult, how hard the markets hammer again and again, cyclically, the Darwins in my portfolio, managed by professionals… I understand that I would be dead soon if I try myself.

Try to make money by just buying stocks in the bull market. It is not easy, but it’s way more easy. Just make your own research and pick the strongest stocks with a great momentum, check what hedge funds are doing with their money, take some advice from prodfesional that you will find for free all over the fintwit… buy and hold until you get your take profit, use stop losses, reevaluate and rotate portfolio and that’s it.

You only need to make one decision per week, at most. Or just pick some simple strategy with an ETF tracking the SP500 and will be even easier…Make money slowly and steadily and get out in the bear markets.

That’s the only way for me.

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And what about your results here investing darwins?
Can you post a chart from the beginning of 2018?

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What I don’t get is why with such small profit the first chart states a 4.7% yield … it must be that I have been adding money to my portfolio, and it must be averaging the % returned? And also I have increased my leverage progressively from 1x to 2x. Yeah, I guess the 4.7% must be the most accurate way of measure the returns?

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WOW also you are Spanish but working with GPB like @Aimak :wink:

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Everything comes to an end and I think it’s time to start closing my portfolio.

The main reason being that I am doing pretty well in the stocks market and it makes no sense keeping the money here at the moment.

If we get into a bear market maybe I will come back and restore my portfolio. Dawinex is a safe place to keep the money and get a modest return. But I will evaluate buying bonds or other assets as well.

The main problem with Darwinex in my case is:

  1. I totally reject anything related with forex, indices or any leveraged product. I have lost many months of my life trying to become a trader and has been a complete waste of time. I don’t trust these markets, they are too difficult, too dangerous. Stock markets are not easy, but compared to that forex hell, they are a piece of cake

  2. Said that, all the Darwins are based on forex/indices trading accounts. That is a handicap. Darwins would make much more money if based in stocks markets. At least during bull markets, which I think happen half of the time in the US. Also, it is impossible to know what the heck are the traders doing. Why Finbou systems work? I have no idea. I can understand what a guy trading stocks does, etc, but forex is too esoteric Why is a good idea to go long in the AUDUSD tonight? Fuck knows…

I know Darwinex does a great job protecting the investors against the perils of the market and the rogue traders. But that’s not enough for me.I don’t have time to understand all the technicism behind a good trader with a good system. I will never get the conviction to be comfortable here.

If you are another failed trader that wants at any cost get a compensation from the forex market, then Darwinex is for you, it will allow you to make money indirectly from the forex market. Some money, without the risk of losing your entire account in two weeks.

But not for me. the whole adventure of trying to become a trader has been a complete waste of time and I want to forget if completely and focus in what actually makes money for me.

Hope this helps to understand why I quit for now, I think Darwinex is a great platform based upon the most dangerous and traitor of the markets in the world. It would be GREAT to have something like Darwinex for the stocks markets.

Thanks

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I understand totally your problematic, and it is great to have you explaining your reasons with a lot of sense.
However, DARWIN is an asset as itself, underlying instruments are only part of the “game”.

To be continued…
Hope to see you back when we will have our first DARWINs based on stocks @Chita !!! :slight_smile:

PS: about “understading” what is happening inside a DARWIN (regarding how the strategy works), I’m not sure that you’ll be able to identify clearly the behaviour of a strategy based on stocks neither. I mean, it’s not about about going long/shot on GS, this can be identified. But how do you “understand” a strategy that would be long 100 GS, short 30 MCD, and short 30 MSFT?

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Hi @Chita,

I am sorry to see you go. Having all your funds invested in DARWINS would not be wise. Investing all your funds in stocks would not be wise either (that’s my personal view!), but you are of course free of investing wherever you like.

Stocks are already available with Darwinex, DARWIN stocks will be coming, too… But I’d say one of the main advantages of DARWINS is precisely that they are not correlated with the behaviour of stocks.

Just my two cents!

Wishing you best of luck in the future,
Ignacio

PS: I read this tweet the other day and I must say I do fully agree. Time will tell!

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Exact stocks can be traded like everything, like currencies soj or pork belly.
Pardo in his book has a trendfollowing strategy on pork belly. :slight_smile:

Buy and hold stocks works but it will difficult to win when spx500 will lose 50% like in 2008.
In 2017 I could buy and hold QQQ and beat my LSC or KVL and many other traders more skilled than me.

Investing darwins I am not investing forex, I am investing people .
Skilled guys able to beat the market.

There is a reason why there are billions on hedge funds that return “only” 10% per year.

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Thanks for your replies.

I wish I had the technical/scientific background to truly understand your hard work and praise as it deserves. You are doing a great job, please don’t feel put down by my previous message.

And also my apologies for not searching the boards before writing my message, I see now you already started it in May with 30 DJIA stocks! I didin’t know that! :clap: :clap: :clap:

Well done, congratulations for that. I immediately pull the brakes on this (luckily I still have 90% of my portfolio account intact) Will study more this weekend, many thanks :grin:

PS
I agree, I also feel the danger that stock markets are close to the end of the happy times. There’s never been a decade without a major recession since 1850… And the 2010 decade is coming to an end soon. That, plus record employment rates in the US, plus overall awesome economic indicators, plus lots of leveraged ETFs being abused by retail investors, plus… The only reason that I think is not happening yet is because with -0.4% ECB rates, Europe would be completely destroyed by a major recession if it happens before things “normalise”. But that’s only a hope…

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I wouldn’t compare a hedge fund that has to manage billions with a single investor who is much more flexible to take risk and open and close positions with market orders. HF managers who “only” make a 10-20% yearly have usually a history with their own personal accounts, before becoming HF managers, with returns way above 100% yearly.

Anyway, it’s not easy. this is a long term game and you are as good as your last trade. You can make 100% in the stocks this year and then the bears come and cut that to a 50% profit (if you are disciplined and stop trading, otherwise you will find a 50% loss easily)

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