CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

HUO - 2020 Forecast: 11% Max Drawdown with 55-60% Profit Potential in next 12 months

Dear Darwinex Community and Investors. After 1 year of being on Darwinex, I would like to introduce to you my Darwin: HUO

About me:
I am a working professional, currently within the rapidly growing fin tech space in London, UK. I am in my late twenties with a few years experience trading financial markets ranging from the Forex market (all currencies including Majors, Minors, Crosses and Exotics), the Futures market (all commodities such as Agriculture, Metals, Energies etc), and also the Stock Market.

My Strategy:
My trading system is what I have been developing and improving on over the last 4 years. My strategy includes a range of setups that can be taken in all market conditions from Reversals, to Breakouts, to Trend Following etc. It is always adapted to current market conditions; this ensures the BEST setups are taken for the RIGHT pairs at the RIGHT time. I trade mainly the higher time frames, looking for the larger moves. (This will however result in my Darwin having a lower ‘Open’ and ‘Close’ score, however ALL other investable attributes will be HIGH and well above the average).

2019 Stats: 11% Max Drawdown with 37% Profit return in 10 months
In the last 10 months, from April 2019 to February 2020, my Max drawdown was 11.69% with a profit return of 37.40%. My main Highlight for 2019 was: keeping variable risk consistent and low, at around 10% throughout the year (making Darwin very low risk and stable, not going past the 10% max drawdown in any given month). Ending with a return of 37% by the end of Feb 2020, this gives this Darwin HUO a Risk to Return factor of 1:3. Additionally, in terms of performance, my strategy is on average in the top 95th percentile.

2020 Projections: 11% Max Drawdown with 55-60% profit Potential in the next 12 months
Due to current market conditions in 2020, it is optimal for my strategy. I’ll be looking to let winners run more, and I’ll be closing losses earlier. With the same win rate of 40%, but this time with an average win of 2R and average loss of 0.9R [Average Risk to Reward of 1:2.2R] means an expectancy of 0.28R per trade [R = Risk]. I’ll be looking at a similar 10% variable risk but with a profit potential of 55-60% in the next 12 months. [Taking an average of 20 trades a month and risking less than 1% a trade].

Final Thoughts:
Overall, I am a very consistently profitable trader for many years. My values are: long term account growth, by keeping risk low and consistent by adapting to ongoing current market conditions. My trading system is a winning one, with a high positive expectancy, the numbers work in my favour. HUO came close to winning Darwinex Allocation twice already in 10 months as a new Darwin (Once in November and once in February). Currently this Darwin is labelled as ‘Promising’.

I am confident in the near future this Darwin HUO will be among the top 2% very easily. If you would like to join me on this journey, please invest and hold for at least 6 months, and see the results for yourself.

Happy investing!

7 Likes

Hi Nazmulh

Thanks for the introduction and welcome! Please keep us updated :slightly_smiling_face:

1 Like

Hey there,

Thank you for the comment, I look forward to it :slight_smile: Happy Trading to you @StriderFX !

Darwinex sounds the perfect place for you. I wish you all the best.

1 Like

Hello @nazmulh
Congratulations on your Darwin!
Wish you all the best with it.

I see you are stating that you risk less than 1% per trade, however in your Darwin and Underlying Strategy risk goes up to 2% quite often and sometimes even to 2.5%. How is your risk calculated before entry ?

Kind regards and again, wish you the best on HUO

4 Likes

Hello @SkyField
Thank you for the comment, I appreciate the feedback :slight_smile:!

That is a good question. I’ll try to answer as best I can:

Before migration over to Darwinex, I was trading a very small account. Due to such a small account, when entering positions, the original risk (at the smallest position size) was much higher than I Ideally wanted, and also why during that period I have a large drawdown of -18% recorded on my account.

However, since migration and from around Sept/Oct 2019 I’ve been trying to keep risk to around 1% with my undercapitalised account. Due to trading an undercapitalised account, the minimum risk I can enter with will sometimes be higher. But, I have tried to maintain this by reducing my Stop Loss after entering (as I always watch how market conditions are playing out first). Successfully, even with an undercapitalised account I’ve been able to keep my max drawdown to around 10% (you can see this on both my underlying strategy and Darwin HUO has max drawdown of around 10% in the last 6 months).

For example: Account size was £800 during this period. I am looking to enter GBP/USD. From the entry to the Stop Loss distance, with the smallest lot size based on my setups it will result in a Stop Loss value of £14 (1.7%). I will enter with this position based on my trading strategy, I’ll then watch market conditions, I’ll then reduce my SL to lower my risk.

However, I have now been able to add to my trading account. Therefore, moving forwards with a £1k+ account (since April 2020), it will be easier for me to main a consistent risk. As I grow my trading account, my next step (towards end of 2020) I’ll be looking to reduce my max drawdown further to around 6/8%. (I hope, as investors continue to invest in my Darwin HUO, and from the profits, I’ll be able to trade a larger account as I appreciate I am undercapitalised, but I am a determined and motivated trader). Therefore with the larger account I’ll be able to trade smaller, (reducing risk further) whilst also maintaining a good profit performance.

Hope this helps. Feel free to let me know if you have any questions.

3 Likes

Thanks for answering so thorough.
This will be much appreciated by your future investors.

Keep it up and good luck with your Darwin! :+1:

2 Likes

Hi @nazmulh!

Nice introduction. Wish you all the best with your Darwin. Keep it up!

2 Likes

best of luck ,nice introduction