As a passionated algo programmer (mostly EAs) I like a structured process also to build a portfolio.
- Build a filter to select Darwins
- Create a backtest with this filter which is very easy and look at result for 1 year
- Run the optimization service presented here: Portfolio Optimization service
- Check whether backtest for 1 year is improved by the optimization service
- put the results to the demo portfolio
A) My current filter - please build and use your own:
C) Run the optimization service and think “thank you” to @ManFromGlad
D) Check backtest result by unchecking the removed Darwins, it should be better now
E) Build demo portfolio with the allocation calculated by the optimization service
Filter results are not always reliable during the weekend as far as I watched it. And thanks to @Tomcat for the idea of using the LA attribute.
I add a stop on the max. DD + 1% of the filter based on the visible ATH of the chart as a risk reduction because the Darwin will not appear in the filter for the next 2 years.
The portfolio should be maintained once every month only.
i) If a Darwin disappears from the filter, it will be removed only on the monthly maintenance day.
ii) The optimization will be used and the new allocations will be entered:
iii) As I run the portfolio with double leverage, all winners will be sold and bought back with the new allocation to get the full advantage of the double leverage.
iv) The allocation of losers will be maintained by selling or buying the difference.
v) Maintain the stop order and rise the stop level for the winners if required.
If I will publish an own Darwin anytime, it will be added to the portfolio additionally for comparision with the minimum amount as long as it is not accepted by the optimization service with a higher allocation.
This post should encourage you to test your own ideas this way. What I described could easily be done in less than one hour per month and without deeper due diligence as I am convinced that a new investor does not really understand all what Darwinex does, maybe he has an impression which must be worked out by his own experience.