The CABLECONTINUITY strategy underlying Darwin JGC only trades the cable GBPUSD. It is a trend strategy based on Price Action concepts, where a expansive movement measured in the time frame H1, activates the input signal waiting for a trigger operated in lower TF, after a necessary pull-back, searching a second expansion that reaches a pre-determined take profit TP, and protected by a previously fixed stop loss SL.
After 9 months trading, the strategy has generated a 194.9% return with a 32.8% drawdown (5.94 risk reward ratio). The initial capital of 3,000 euros, has become the current 8,864.4 €.
Related with the darwinex investable attributes, the strategy stands out especially for its consistency and performance. The SL and TP are fixed in the strategy, and are always respected, that’s why the Return consistency is so high, although the consistency in duration (7,94) is not low either.
The Risk Management (7.6) and Timing (8.3) notes are also reasonably good.
The scalability score is 4.5. Throughout these months of trading, I have decided to split the setups to improve the score of this attribute, so it is going to continue improving slightly over time. Although the note is not high, currently the monthly divergence remains positive, being the average monthly return of the investor + 0.74% better than the Darwin.
The lowest score is experience (2.6) after 8 months of Darwin’s existence. The reason is because the average days for D-period is 56.67 (approximately 2.5 months), as the 10 in experience are 12 D-period, the strategy with the current average needs 30 months of trading (2 and a half years ).
The inefficiency exploited by the system, appears 2-3 times a week, as you can see in the data of experience of the investable attributes: 53 representative decisions in 128 trading days.
Obviously over time is the only one that is sure to keep improving, and I hope it brings more confidence to the investor who has not decided for this reason … but this way you will have to arm yourself with patience.
If anyone wanted to accelerate this process, I have thought how I could contribute information of this strategy trying to compensate this low experience. The idea would be to provide a backtest of the three previous years to the start of the darwinex trading, which we could consider as IS (in sample) and verify how the real trading in darwinex OOS (out of sample) has been validated.
To do this, and taking advantage of the backtest tool of darwinex, I already have the complete analysis of the strategy in the three previous years including all the values of the investable attributes that could be compared with the current ones. On the other hand, I could also provide information from Monte Carlo’s analysis of IS to see how it has behaved in OOS.
To not extend this post, I have decided to post it to another, as long as you transmit your interest in that data, pushing “likes” or asking for me directly in this topic.
If you want to know more about me, and you understand Spanish or you can translate it, attached link to the interview published in the darwinex spanish blog of last 27th october.