I’d like to indroduce my Darwin FHT and provide some details on how the underlying strategy is traded.
I’m a retail trader with about 6 years experience. As most traders I have made lots of mistakes and experimented with many different strategies (there’s a hint in my username ) before finally settling on the strategy I’m using now. It has been quite the learning experience and rollercoaster of emotions, until I stopped babysitting my trades and started adopting more of a “set and forget” mindset.
Trade Strategy rules
- FHT trades the majors and most crosses
- Entries are based on H4 candlestick charts and patterns
- The Underlying Strategy trades with initial risk of ~2% or less per individual opened trade
- The Darwin should see Risks of strictly less than 2% per individual opened trade on the default Risk settings
- Exits are based on a Profit Target set at a Risk:Reward of > 1:1, but trades can be closed sooner if there are indications we’re not going to hit the Profit Target. For trades which are opened with an expectancy of long duration, and very high R:R (> 1:5) a trailing stop will be used to lock in partial profits.
- There is a limit of 1 simultaneous trade per pair. Hedging may occur across different currency pairs.
- Ex: No account migration, so experience is still low, but ever increasing
- Mc: Should remain high. There is no bias for a given currency, only technical arguments
- Rs/Ra: Trade sizes will evolve with account size to get a consistent exposure per trade measured in %. The only variation expected here would be the number of simultaneous open trades. Entry signals for additional trades may be ignored, or may trigger the close of an already open trade on another pair, in order to limit the impact on the Rs/Ra attributes.
- Os/Cs: The Open Strategy shows that earlier entries were better, later entries were worse. This fits the underlying strategy, which usually waits for directional confirmation rather than trying to catch tops or bottoms.
The Close Strategy will be more random due to the different criteria for closing trades (see previous section)
- R+/R-: R+ is not expected to have a high score. R- on the other hand should remain high. This is explained because there is a fixed ‘Risk’ exit, but not a fixed ‘Reward’ exit.
- Dc: There are no time limits imposed on open trades, so I do not expect a high score on Dc
- La: This attribute is expected to have a high score, again because of a fixed ‘Risk’ exit.
- Pf: Not much to say here. Both you and I hope this score will remain high for ever
- Cp: Since the underlying strategy trades H4 charts, there should be some divergence allowed.
My personal trading focus
- Primary focus: keeping the Risk Aspects (Rs/Ra and R-/La) high.
- Secondary focus: trying to improve the Reward Aspects (Os/Cs and Pf).
I’m planning to provide monthly updates at the least, and reply to questions as soon as possible.
Should you have any more questions and/or suggestions on what to include in the monthly updates, please do let me know, and thank you already for taking the time to read this introduction.
Good luck to all traders and investors alike! May the fortune be with us