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HFD - HighFive

Greetings dear friends.
My name is Konstantin. I manage Darwin HFD. First and foremost, I would like to thank all my investors! Thanks a lot for your trust.

I’d also like to thank Darwinex for providing an excellent platform where traders can interact with investors.

During this year there were quite a lot of events. My Darwin has been joined by many investors and Darwin’s capitalization has increased greatly, I feel a duty in writing a post about myself and strategy.

About myself.

My name is Konstantin, in the financial markets for more than 5 years. I have been mainly active in investing and trading since 2013. I have long been interested in financial direction and asset management and I have always developed and tried to grow as a trader. Since 2014, I have tried different systems and methods in the market, looking for my direction, market vision and trading style. I also tried automatic systems such as: night scalpers, impulse – breakout EA. Since about 2016, I have been trading using the system presented on my Darwin and other accounts.

Information about the trading system.

My trading is done manually with semi-automatic software. I use a comprehensive market analysis based on margin zones of participants from the futures market. I make the decision to enter a position using also volume analysis, option analysis, technical analysis and look at market sentiment. In narrow circles, this system is known and at the same time I have my own vision of the market and risk management. I trade majors and gold. The period of trading is medium-term and short-term. The average trade duration is about one day. Type of strategy is trend following after pullbacks, however, there is a small percentage of counter-trend trades.

Risk management

  1. Each trade is protected by stop loss.

  2. Risk per position is up to 2% of the equity. Most often there are 2-3 trades in one position. There is a limit of a maximum of 3 pairs in operation at the same time for 1 position on each. The risk is never fixed. Typical risk per position is 0.2% - 1% of equity. Note the risk per position varies depending on a variety of factors, the quality of signal, market condition, stop position, volatility of the trading pair and the average move etc.

  3. I try to hold a stop ratio to a take profit 1 to 2 and above.

  4. Most often, trades for the same positions have different take profit levels. The nearest take profit is a local extreme, after closing the first take, the second and third trades are transferred to breakeven.

  5. Exits are based on a Profit Target set at a Risk: Reward of ≥ 1:1,5, but trades can be closed sooner if there is a signal about a possible stop or reversal of the current trend, it is also possible to partially fix the trade to the target profit.

  6. I don’t use martingale and overstay. However, sometimes I can apply position averaging when favorable conditions with good potential for the target profit appear for this, while standard stop loss from equity is always set and in general does not differ from the usual position.

  7. Stop losses are relatively short 10-80 points on the 4 sign, Take profits 30-200 points or more depending on many factors and the entry point.

My main task.

Hopefully I can continue to provide performance that corresponds the trust given to me. I am constantly working to improve the strategy. I work on myself, analyze past entries and possible mistakes, try to grow as a trader. I’l do my best to preserve your and my funds and, if possible, increase them. Currently, asset management is my main job.

Thanks again to everyone for your time. Successful investments!

Kind Regards,
Konstantin.

P.S.
I think in the near future you will all have the opportunity to ask questions and I will try to answer them.

25 Likes

nice introduction. I would like to have introduction for all my darwins that I am willing to invest.

what maximum capital you can trade? when you will stop accepting new investments?

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Hi @Spike,

The maximum estimated capacity of my Darwin is over 6MM. There are currently no limits on maximum investment. But I am keeping a close eye on divergence and there will be a limit on new investments if necessary.

Regards,
Konstantin.

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Hi Konstantin,
Do you use Market depth (like Order flow or DOM) to pick the trades? Im seeing that you have a nice score on LA attribute.

Thx and keep it up man.

https://blog.darwinex.com/interview-highfive-darwin-hfd/

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Hello @Dieg,
I use DOM. At the moment, this is a small part in the analysis.

Hello @CavaliereVerde,
Thank you for the link to the interview.

I apologize to everyone for the long absence from the forum. Tomorrow I plan to write a full post.

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Greetings all,

Thank you all for your trust! Welcome to all new investors.

Last month’s report and my thoughts.

November as a whole was difficult. Quite a lot of instruments were in the flat market most of the time. There was low volatility in the market and ATR, it is not easy to trade in such conditions. There were a lot of stops, the profit was mainly received on GBPUSD, AUDUSD, USDJPY and gold.

I have further reduced risks, including reducing the frequency of entries and the volume of trades. I wanted to reduce risks also in order to reduce divergence. I noticed that over the past month, “VaR” has dropped rapidly from 8% to 3.5%. At the same time, it was a slight surprise to me that at 3.5% VaR, the Risk Manager’s multiplier from the underlying strategy is about 3. This means that the standard stop loss -0.5% of the underlying strategy on Darwin will be -1.5%, which is quite a lot. Also as VaR decreased and risks decreased divergence began to increase again.

I wouldn’t want to see a big gap between Darwin and underlying strategy.

I would like to be able to set up VaR inside the 3% - 10% range. Or so that I had an option to include flexible VaR to 10% at which the basic strategy corresponded to Darwin, for example inside a range of 3-10%. Or an alternative option in which with a VaR reduction of less than 10%, the risk Manager multiplier on Darwin increases linearly to a maximum of x2.

I’ve seen discussions on the forum about risk management changes. I just wanted to give my opinion. I’ll adjust to different VaR.

What happened on December 4th? The result is +1.11% on the underlying strategy, while the result on Darwin is +3.2% due to the risk Manager multiplier.

About the divergence.

The divergence has been increasing again lately, although I try to keep it to a minimum. I noticed that most of all increase divergence on positions with gold. I know about splitting positions into several and opening / closing them at different times. I asked Ignacio to make clear some questions and give me advice. Thanks a lot to Ignacio and the Darwinex team for the answers.

For example, one of the last gold trades with a conservative risk of 0.3% and a volume of 0.1 lot greatly increased divergence. The investor’s volume of this order is 13.5 million, and the recommended maximum investor’s volume is around 5M… This order was to be divided into 3 parts. Usually I open 2-3 orders per position, at the moment I need to open 6-9 orders. I hope conditions will improve on divergence and liquidity providers. For now, I’ll try to keep the divergence low.

Important information.

I’ll set a maximum capacity limit at 8 million and a maximum divergence at -0.5%.

At the end.

I think to complete the trade this year. There is still a lot of fundamental news in December, but for now the market is uncertain.

In any case, I do not trade from December 20 to January 9 due to the New Year holidays, as this is a period of low liquidity, the market becomes «thin» and most often the movements are unpredictable.
I do not participate in the New Year rally.

In the meantime, most of the answers to the questions can be found in a recent interview or in the introduction. The Darwinex community asked questions.

Sorry for my English. I can’t freely and actively support the topic, because I periodically use an online translator. I hope to learn English for free communication.

I’ll write another post at the end of the year.

Regards,
Konstantin

12 Likes

Hi Konstantin,

From your Darwin page I see that HFD is a trend following after pullbacks type of strategy. Do you enter the market with Limit orders, or only with direct execution? Or with a mix of both? And if you use a mix, have you noticed any divergence differences between limit orders and direct execution?

In any case, keep up the good work!
For me personally, you are perhaps the best trader on Darwinex and an inspiration for me as a trader.

1 Like

Hi @Renko,

Thank you for an interesting question.
I use a mix of limit orders and market orders. Depending on the signal in the market. Today it can be a formed pattern or formation and I open a trade with a market order. On another day, I may see a potential entry point, which may take several days or more to form a signal. In this case, if necessary, I can set a limit order.

Your question: “have you noticed any divergence differences between limit orders and direct execution?” - I was also interested in this question and I asked Ignacio. Answer: No, this does not affect your orders. MT4 / MT5 orders all work as market orders and have no impact whatsoever on your divergence.

Although I had previously suggested that market orders had a greater impact on divergence.

Regards

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HIghFIve just replaced Finbou at top of hall of fame. Phenomenal achievement!

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Congratulations Konstantin!
Well done on your achievement! @HighFive

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Hello, dear Darwinex community!

In 2019, there were quite a lot of important events for me. A lot of work has been done both in terms of self-discipline and in improving risk management and the trading system as a whole.

I am happy to work with you and I would like to thank Juan Colón and the entire Darwinex team for providing excellent opportunities.

I would like to thank all investors for your trust.

There is still a lot of work and fruitful cooperation to be done in the new year.

Happy New Year to everyone! I wish you Happiness, sincere kindness, fulfillment of desires and good mood. Take care of your family and friends. Be patient in all aspects.

Successful investments in the New Year 2020!

Trading will continue after January 9, 2020.

Kind Regards,
Konstantin.

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And a Happy New year to you and yours Konstantin.

Andy
Captain Currency

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Konstantin, thank you for your congratulations to the community and the investors. As a new investor in Darwinex I have chosen you as my main asset to achieve success in this 2020.
I have full confidence in your successful track record and your future achievements to contribute to our mutual benefit.

May your financial goals come with personal success and happiness with your loved ones. Happy Holidays and Happy New Year. Win/Win.

J.C.

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Good afternoon!

One of your best Darwins, HFD, is not active since the beginning of December 2019. CAN YOU explain me why he is not ‘working’?
Frank

@Briesje2016
Before creating new topics it is better to use the search function. :wink:

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Thank you very much!

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