CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % 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.

OCD - Onikami Capital

Dear Darwinex Community,

First we want to thanks Darwinex for providing such a good platform for Alternative Investments.

Also we want to take the chance to introduce ourselves and our strategy OCD DARWIN and concept behind it in order investors can have a clear picture of what we do and how we do it.

Who we are

Onikami Capital was released in Jan 2018. Is a brand new algorithmic momentum/breakout based strategy with many advanced features which targets the G7 currency basket and commodities.

The chief strategist, Telmo Pinto, comes from a strong technical and mathematics academic background. This provides him with a vast amount of technical and market knowledge, as well as experience which has been responsible for the entire multi-system design and integration of some institutional systems.

The program itself is approximately 90% systematic (i.e., automated) in terms of management, however a discretionary overlay is used on trade execution and to oversee and fine tune the algorithms used in the strategy whenever necessary. Thus, the program is in a constant state of evolution and always trying to improve as it trades through various different market conditions and timeframes.

Strategy

Trading tools and analysis are designed to detect market patterns on particular currency pairs; these patterns may be identified through a myriad of market indicators. Due to the relative stability of certain currency pairs over defined time periods, Onikami Capital methods identify when a pattern has been temporarily breached due to an increase in market volatility. Onikami Capital strategy initiates long or, short trades on a currency pair during a pattern disruption and realizes profits when the pattern has been restored. Onikami Capital time horizon on a particular trade may range up to 1 month.

In the simplest sense, the program focuses heavily on “momentum/breakout” movements in the markets. When a major sell off or heavily influenced move transpires in the market, Onikami Capital piggy backs alongside this move, gets in and banks its profits in the follow through, or it reduce the risk using lower timeframes entries if there is a retracement.

Methodology

As stated, Onikami Capital underlying methodology involves trading without the use of linear modeling or technical indicators such as Moving Average, MacD, RSI etc… While using these tools certainly has merit and a long history of use, the fundamental problem is that indicators are static and don’t change.

As the market evolves, one day these indicators may provide traders with excellent profits, however the next day when certain economic conditions change the indicators are no longer accurate and are not able to interpret that the market has changed therefore they cannot effectively adapt to the new market conditions. This is where the Onikami Capital
algorithms hold an edge.

By basing the trading rationale solely around intra-day price action, the computer programs which make up the Onikami Capital algorithms simple try to identify the most likely movements in a particular currency pair by reading various data and attempting to interpret such data, by revealing patterns in it, and the relative importance of certain trigger points on the particular currency pair being traded. The result is a very unique price action based automated approach to trading the currency markets.

Risk / Money Management

Money management and risk management are strictly enforced into the basic “rules” and overall design of the trading program. The algorithms trade with auto-adaptive stop losses and have a very rigid money management formula. This allows it to accurately control the risk and contain draw downs when they inevitably occur. Error management and data management routines ensure the stability and ongoing success of these two key features.

Asset Class Traded

Spot Currency and Commodities Markets.

Instruments Traded

The strategy places most trades on the G7 currency basket and Gold.

Time Zones Traded

Trades can generally be executed at any time, and any trading session.

Diversification

The strategy employs a combination of mixed strategy diversification, systematic (tools) and discretionary diversification, time frame diversification, and currency pair diversification.

Strategy Risk and Limitation Considerations

The key primary risk factor and limitation which can effect and significantly impact this strategy is multiple false breakouts or false sell-offs – whereby the market appears to move with huge momentum, but then suddenly stops with no “follow through”. This may trigger the system to place multiple orders multiple times in a short time frame and could cause significant smaller, but frequent equity draw downs.

Risk Settings

Average Drawdowns (Equity): <=2%
Above Average Drawdowns (Equity): 2-5%
Worst Historic Peak-to-Valley Drawdown to date: 9.78%
Max Anticipated Drawdown (Equity): 15%
Global Equity Protection: 25%

Onikami Capital is considered to be a risk-adverse trading strategy with a lengthy history demonstrating good risk management. Average drawdowns above are encountered frequently and are considered “normal”. Above average drawdowns occur occasionally in a given year, are less frequent but are also considered “normal”. The worst historic Peak-to- Valley drawdown to date is the worst drawdown that the account has experienced to date, in equity decline, and is considered “rare” but it sets the benchmark in terms of worst historical drawdown the account has achieved to date, and hence can possibly happen again. Maximum Anticipated Drawdown is the maximum amount of drawdown anticipated in a given month, based on back-model data analysis.

If you have any other questions please visit our website or just write them in this forum and we will be happy to answer.

Best Regards
Onikami Capital Trading Desk

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Dear Darwinex Community,

We believe strong foundations are vital in building the trust of this community. This can be achieved by starting from the bottom and consistently grow together - saying this we received our first investor and we are very happy!.

Happy trading,
Onikami Capital Trading Desk

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Congrats!
I just made a quick tour on you website.

Nice, but I have a couple of questions.

Are you a registered manager with an address, names and registration number?

Just found the answer :slight_smile:

Suite 925A, Block 8/9
Europort, Gibraltar

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Congratulations, keep it up! A score of 65 with “just” 7.5 in Experience is not easy to achieve… looking fwd to you guys succeeding :slight_smile:

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Impressive track record, Onikami Capital! Returns look great, and with a very reduced drawdown.

Are you working on ways to improve your entries? I was looking at your Open & Close strategy and realized that the situation is exactly the opposite of what I’m experiencing with my Darwin, UPP ( https://www.darwinex.com/darwin/UPP.4.5 )

Wish you the best of luck!

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Hello @freedum,

Thank you for your post and comments. Algorithm is always in learning process mode, this means, it looks for 3 even 4 different timeframes in order to define the predominant trend and possible entries. With the accumulation/process of data it defines/discover new patterns in order to see inefficiencies in the market and exploit them resulting in the open/close of trades. As all systems there is limitations, the major limitation in algorithm is multiple false breakouts or false sell-offs – whereby the market appears to move with huge momentum, but then suddenly stops with no “follow through”. This may trigger the system to place multiple orders multiple times in the short time frame and could cause significant smaller, but frequent equity draw downs. Although when this happens our money management system enters in action and measure the risk of the , what we use to call “cycles”, and manage them the correct way, preventing large and long period drawdowns. Saying this,our entries , especially the counter-trend ones, can have a not so good entry, although the money management and even the algorithm take action immediately preventing a “drag” of open more trades or cutting the losses too soon. Another good feature of the system is the constant risk control of the portfolio, that means, for instance the temporary replacement of some pairs by others or even open positions in gold to counterbalance the all portfolio. Resuming, our system is not based on any indicators , but a myriad of market statistics that produce the entries and exits, so it will tend to overtime learn current market situation and adapt to it better than the last “know” cycle. Hope this explain better our way of trading. Wish you all success and Happy Trading to all.

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Dear Darwinex Community,

Related to October, first month of our trading at Darwinex we could achieve nice results - OCD, like we´d like to say - Trading is marathon, not a sprint. Due to the rebound seen at last days of trading, our results loss a little bit in the final stage, although this is part of the system and we have reestablished the line positioning with the current market situation. This is one of the major strengths of our trading. Even with that we are one of the DarwinIA winners and that, in our humble opinion, is a good sign of our trading capabilities.

Happy Trading.
Onikami Capital

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@onikamicapital thank you for the good trading so far, I am the second investor and here for the long term, Liking the Cp and La scores, congratulations on the Darwinia prize.

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@turquoise thank you for the confidence and nice words. We will always do our best , that is guaranteed.

Happy Trading,
Onikami Capital

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Dear Darwinex Community,

As we posted earlier, the rebound seen on markets late October, put our monthly final results lower. Although and as expected, as soon our system reestablished the line positioning with the market the results appeared and we are now with major cycles at place, gaining comfortably for the month. Despite our D-Score below 70, we expect achieve the mark soon, as it´s an important level that Darwinex investors look at.

Market comment - US Dollar jumped to its highest level in a year-and-a-half today, propelled by expectations for higher U.S. interest rates and an uncertain political landscape in Europe and continuing trade tensions between Washington and Beijing.

Happy Trading,
Onikami

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Dear Darwinex Community,

Due to recent developments on Brexit we have reduced the exposure on GBP in order to avoid unnecessary risks for the portfolio.

Happy Trading,
Onikami

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Dear Darwinex Community,

We have closed the month with modest gains of 0.9% although the current Drawdown is at -1.71%. It is what it is, market is changing and system cycles are adapting to it.
Some investors enter this month and are not happy, many even stop at once the management trading is a marathon, not a sprint.. OCD was at top ten (Darwinia) and then went down, and finalize the month at >100 position - This is trading. what is most important - Not at all force the trades, not at all skip the rules, not at all try to force the market, because market will knock you down hardly.

Happy Trading,
Onikami

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You have one of the most promising Darwins among the ones that aren’t well established. Best wishes!

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@yhlasx thank you for your comment. As always doing the best, but until investors understand that there is no holy grail and losses are part of the business, is very difficult for them achieve a balanced portfolio.

Happy Trading
Onikami

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Dear Darwinex Community,

Even in recover mode, D-Score is now above 70 - seems an important value for darwinex investors.
Let´s see how the month/year ends, and our final results for 1st year since inception.

Happy trading,
Onikami

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Dear Darwinex Community,

The magic of life together with the joy of the people, will make this Christmas the most beautiful. We wish you to spend a beautiful Christmas next to your loved ones. Happy Christmas to All

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Dear Darwinex Community,

First we´d like to wish a very good 2019 for all.
December was a complicated month which cause our largest losing month since inception. Although a new year is coming and we firmly believe will be very good for our trading.

Happy Trading,
Onikami

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I hope there are no plans to pack it up and close the darwin due to recent performance? Also, does the orders not have hard stop losses? Because even before the flash crash, the day previous was like a slow bleed of almost -10%.

Don’t get me wrong, I am not criticizing anything, I just would like to know more. Best wishes!

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Dear @yhlasx and darwinex community,

No need at all to apologize, every question is good (even in not so good situations as the one system is handling).

We are facing an historical Drawdown and revisiting DD values from 2008/2009. The false cycles breakouts are now in the 8 stage, wich is ridiculous abnormal ( but nothing is never abnormal for markets ) and yes we have an hardstoploss to kill partial trades that was not executed because the system not trigggered it. This is the bad part of the 10% var. Completely understand the frustration of investors and the work of 1 year track record is somehow down the drain with this DD but market is what it is and we are here like stone to protect all interests but never try to force the market, because in that war we will always lose.

Happy Trading,
Onikami

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Hmm, so you have track record ranging back to 2008? Is it possible for you to make it public? Seeing a long track record is a great comfort to investors. I don’t mind DDs all that much, as long as I believe that Darwin isn’t going to die.

1 Like