the review of the month of March is coming tomorrow (a bit late, sorry about that).
It’s been a great month with many things to say and analyze, but, meanwhile, April has started in a very bad way and we are currently experiencing the worst drawdown of the system since it started this adventure on Darwinex.
Current Max drawdown for the system: -5.16%
Current Max drawdown for IRY: -8.36%
This is the 4th worst drawdown in the history of the system. Nothing new, I’ve been here before, but it is no joke and it needs to be taken seriously.
Luck was certainly not a factor that helped in this period. These are just two stop loss hit in this period:
Something that can happen and sometimes it also happens in favor, but certainly something no one wishes to see in a period of drawdown.
I trust the system 100% and nothing will be changed while facing this period of drawdown.
The only thing that changed is regarding my personal account. As the VaR went over 6.17%, I have been forced to increase my risk to compensate the ratio with investors going down, in order to give them the same curve I have with my personal account.
It’s something I don’t mind doing, I’m here for the investors and not for my personal account, so I’m ok with increasing my personal risk in order to keep stable conditions for investors in IRY.
What I mind and I have to admit I’m very disappointed in, is that while I have to struggle day by day with the VaR calculations to try to guarantee the best conditions for my investors, while I spend time to write a post providing evidence that the current VaR system does not help in this period, either some traders or their investors, Darwinex decided not to spend even 2 words about it, but preferred to talk about the fight against Wikipedia and why they are not just another MT4 broker.
Anyway, I’m always here for any question and concern and let’s hope this drawdown period will go away sooner than expected
One last thing, some people asked me if this is the best period to invest in IRY, since it is having a bad drawdown.
Personally speaking, I have increased my investment in the system just this morning and I plan to spend my first performance fees to invest in IRY.
Having said that, you also have to consider that current drawdown is at -8.36% and, as I wrote in the description for the Darwin, a maximum drawdown of -16% is not only possible, but can also be expected based on previous results.
Please consider all the aspects, don’t rush your investments and invest only money you can afford to lose. If you have any doubt, contact me before investing.
Best of luck