I want to give you some information about my Darwin DIR.
The objective of this strategy to create permanent profit with acceptable drawdowns.
The trading is made only by an EA, which manages more than 20 currency pairs with the same trading logic.
The basic trading model is a trend following model.
All positions have a dynamic intial stop and take profit calculated from the chart. There are several conditions defined which have to agree before a trend is accepted for entering a trade. a tight trailing stop is used when a position comes into profit. The trading logic is used for accasionally manual trading since 2017.
It is possible, that more than one trade is entered for one asset. That happens only if the signal to enter a trade is repeated. Price levels are not used. The number of trades possible on the same asset is limited, but can be changed.
Example (picture from a MT4 backtest):
The EA trades the 1D timeframe, better said, 24 hours timeframe. That has the advantage that when positions are to close by differences in the trend signals it mostly happens during trading hours with high liquidity and not at midnight when the liquidity is usually low and spread and slippage are high.
The timing to entered a trade and to set the trailing stops is calculated from the 1 hour chart.
The following pairs are currently traded (when the column acitve shows ‘Y’), the results are calculated from January until August 2019 from the demo environment which is about 95% reliable.
All pairs offered by Darwinex are checked at least once per month and are added if the EA can produce a stable profit with them or removed if the daily chart doesn’t show reliability for trading a pair (like currently USDCHF).
SPA35, WS30 and SPX500 are not traded as long they are not offered for 0.01 lots (1 microlot). The max. DD could be significantly extended by trading them with the available lotsize of 0.10 lots (1 minilot).
Entering a trade is not manually controlled, it only depend on the signals generated by the markets behaviour. So there will be times where the trading activity is low or the EA is very busy as it is right now.
As the EA is trading the daily chart, I don’t expect the perfect attributes here. Most attributes give better values if the trading is more short term, I assume.
While the EA had a low trading activity significantly under average in August, it is now hyperactive since a week. The VaR is expected to stay in a range of 8 to 15 %, during the current massive trading activity it could also be slightly higher.
The EA is not written to paint nice green attributes, but to make solid profit with acceptable darawdowns. So some intraday drawdowns must be accepted just as ‘noise’.
My expectations for this strategy on the Darwin DIR:
- a continuously monthly return between 2 and 12 %
- return for the year 2019 should show more than 25 %
- yearly or any 12 months performance should be higher than 50 %
And this is the picture this Darwin starts his journey at Darwinex: