At the end of 2017 VTJ had a quite high divergence and a quite low VAR.
To lower the divergence we had a meeting with Darwinex, that is already known but we repeat it for the one who arrives now.
We also dealt with the topic of VAR, Darwinex's response was clear "Don't worry about VAR".
The profolio was better in real than in simulations, but we knew that at some point it was going to correct the upward trend.
When I entered DD the var was very low and the fall was multiplied.
The original count has a DD of -7.48 %.
The original account in the month of June had +0.06% but the darwin but the rest darwin -2.57%. (risk manager adjustment)
Now the portfolio has more validation and Five-fold decorrelation.
We have also increased the measures to control the divergence, does not mean that it will not go up or down because as everyone knows depends on the order book / liquidity etc.. (market).
The day before adjusting the VaR, I was talking to Ignacio and he told me about the risk manager. The risk manager does not replicate trades with so much leverage.
I knew my TR was going to be ugly, but Darwin and his investors were protected.
I see complaints about the VTJ VAR and that according to what I read investors talk about the best thing to have a VAR of 10 so I wanted to raise it 10 and the key.
I knew very well that not all the trades were going to be replicated in the Darwin, so I went through the same thing in June as the original strategy that ended in positive and the Darwin in negative, because the risk manager acts.
Raising the var can be done in several ways one by lowering the equity thing that I was criticized in his time (is that if the afternoon does not risk his money me either) or raise the original placation, which I get criticized for now.
Either way implies a problem more added to the operation of the profolio, if there are few entries the var goes down and if there are many in var goes up, the market is not = every day.
There are days or weeks that you barely complete any operation, and others that go a lot in the same tick (news).
I believe that anything I do is going to be subject to criticism.
From now on I will regulate the var as I did last year by increasing or decreasing the equity of the account, that does not mean that I do not bet my money on VTJ, if I do but as an investor, so I control the value of the divergence in every afternoon.
Translated with www.DeepL.com/Translator