Today I finished the setup of my new real portfolio. I used the excel sheet used for the investing strategies presented here and extended it with monthly porfolio sums. The sheet now contains 10 Darwins where I selected 5 for an investment.
When I calculated the sums about the strategy results of all 10 Darwins I was very pleased to find only 3 losing months out of 28, the worst month September 2018 showed losses of about 135 €, which is only 1.35 %.
Then I calculated it for the 5 selected Darwins and was disappointed to see 7 losing months, which is 25 % of all months. Even if the worst losing month showed only moderate 143 € (2.8 %) losses, I was looking for an improvement. I didn’t want to buy 10 Darwins, I wanted to stay at 5.
How can I find an uncorrelated Darwin?
The worst month was February 2019, so I looked to the other 5 Darwins in the Excel for the one which got the highest profit in this month. That was planned for all losing months to find a candidate which could cut the (moderate) DD of my portfolio.
The candidate with the highest profit in this month replaced the 5th from my first selection and the amazing result was that now I saw only 4 losing months out of 28 and also the profit (total return without paying fees) of all 5 was even more than 10 % higher than before and higher than with all 10 Darwins.