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.
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