Hi there, I’d like to share my portfolio with you. I’m a lot a DIY guy and I’m a former C programmer, so I started to write trading algorithms, thinking that it would be interesting. And it is interesting, indeed, but it is a hell of work. After some time I realized that I’d need a lot of time to develop good strategies, so I thought that it will be better for me if I let the real Pro traders to do the job for me. You earn money, I earn money, everyone's happy
So, I have some rough rules to design my portfolio (but they’re not written in stone). Sometimes I feel that I can relax a rule a bit, depending on different factors (for instance, when some other traders in the forum like the Darwin, or if some parameter is a bit low but it has others to compensate strongly).
I think that it is possible to get around a 25% CAGR with this portfolio, with not too much DD. We’ll see...
- Ex == 10
- Rs > 6.5, the higher, the better
- Mc > 7 This will show that the trader is not a permabull, and is able to grow the account in any market environment
- Monthly divergence < 0.5
- Performance > 6.5
- La > 6, or the other Darwin’s parameters should look really good
- Trader Equity > $1000
- At least 12 months with a proven record in Darwinex, OR if it has very good metrics, >3 months in Darwinex and 12 months with a migrated track record
- The Darwin's developer ideally would be known here or in other forums
- All the Darwins will have a Stop Loss in -25%. This is a Buy & Hold portfolio, and I’d like to sleep knowing that if something goes very wrong with some Darwin I’ll be able to calmly review what was wrong with it,and if I want it to enter again in the game.
- I added some darwin mainly because their Pf was > 9. I think that it is very important that statistically the strategy has a real alpha.
I don’t want to watch my chosen darwins every day. Actually I’d like a portfolio to run and forget during a whole year… But I’m afraid that I’ll end up taking a look every day/week
All of the Darwins will have the same % money allocation. I’ve been thinking about using something like a momentum strategy to allocate more or less money to each of them, but that will make me to work manually a lot. May be when the API is developed I’ll code a dual momentum strategy or something like that, but I’m not sure about this.
I don’t plan to trade Darwins. I don’t plan to exit any of them unless his parameters change or I see something strange. I’m not (too) worried about a 15% DD because I expect that the whole portfolio mitigate this problem. We’ll see..
EDIT: This portfolio has been moved to demo.
Probably I’ll start entering in the Darwins that are in a 5% DD or something like that.
So, this is my 24 Darwins portfolio:
The following Darwins are also in the portfolio, with the same allocation that the others, but I'll watch them a bit more closely:
PGH ---> I'd like the Rs higher
BDR ---> I'd like the Rs higher
SYO ---> Not in the forum, but I heard in different places that he is (or they are?) a respected trader.
CLA ---> He's not in the forum, but the metrics are nice
LCW ---> The metrics seem very good, but I'm a bit worried about the statement of the developer: "Objective : 15 - 20+% return quarterly"
EXG ---> Small trackrecord and Ex, pero I like all the other metrics. Pf==9,6 Cp==10... I'll take the risk of the statistics.
XYF ---> All the metrics are very high. I like that he uses multiple strategies in the same Darwin. although I know that it could be a problem (because I don't know if he follows his own rules in every strategy), overall I think is nice.
RAT ---> Not too much Ex, but he's well known here and I like a lot the metrics. Pf almost 10. I'll take the risk.
HFD ---> Not in the forum, but very good metrics.
UEI ---> I just couldn't resist this one. Last months has been incredible, I guess he'll mean revert but his Mc==9.9, Rs==8.4, and Pf=8.2 are very nice. I'm worried a bit about the divergence though.
Also, the following is not directly related to my Darwins portfolio, but just in case may help to someone, this is my net worth total portfolio allocation. I like uncorrelated assets:
47% -> Stocks + Bonds using a Dual Momentum algorithm
31% -> Forex (Darwinex)
13% -> Futures Stocks
2% -> Futures Crude Oi
4% -> Options
3% -> Ca$h
EDIT: I want to warmly thank the people in the forum because most of my portfolio rules are condensed knowledge that I've gathered from you guys