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PXT - by Linusman

hi
i would like to introduce our darwin PXT (https://www.darwinex.com/darwin/PXT.4.16) and our experience.
We are three indipendent traders with 10 years of experience in the market. In particular, we work with shares, futures and option index with particolar strategy as well as volatility strategy. We also work in Forex market and the strategy behind this darwin is focused in this kind of market.
The main pair traded is EURUSD with accurate money management; the most important rules are:

  • Every single position is with leverage 1:1 (max 1.3);
  • I use hedging to close position, so you can see some trades with loss for a long time;
  • Max exposure expected is a leverage 1:10 (in the last three years the max leverage is 1:8)
    Our primary target is to have a good risk management of portfolio. About performance, our goal is 30% annual return with max drawdown under 15%.
    All our trading decision to enter/exit are based less on technical analysis and fundamental analysis, and more about the study of implied volatility and trader positioning (as well as COT and retail position). After 10 years of trading, we attribute the following importance to the various factors that influence trading:
  • 60% risk and money management;
  • 20% study retail positioning and implied volatility;
  • 10% fundamental analysis;
  • 10% technical analysis.
    We think it’s really important to have always the control of your portfolio in every scenario. This is our first experience on darwinex (for forex i have 2 other broker), so for now we have deposited a small amount (about 5.000 euro) but, if it will be as well as we think, we expect to transfer a large amount from one our broker to darwinex.
    Thanks for the attention.
    Kind Regards
6 Likes

Hi there @Linusman

Welcome to the community and thanks a lot for introducing your Darwin.
It is very much appreciated in this community.

Wish you the best of luck!
Kind regards,

Welcome @Linusman !

Wish you the best for your Darwinex journey :slight_smile: !

Hi @SkyField and @SECURIX
Thank you very much

1 Like

Good morning
very good stress test yesterday for our darwinx PXT. The risk management was excellent and we are able to lower the risk level.
Only yesterday, the implied volatility on the option (exp 12/9) was 16%. Now it’s back to average (5.5%).
Good job everyone!

1 Like

Good evening
the PXT (https://www.darwinex.com/darwin/PXT.4.16) is having a good performance for now. 13.3% and untile the end of this year i think that it could be above 15%.
The volatility of eurusd is very low…so also the exposition for PXT is small.
I see that there is the first investor in our darwin with 50k. It is very good news for us. If you have a question about our darwin, ask here.
Bye

1 Like

Hi everyone!
I wish you merry Christmas and happy new year for all community!
The PXT had a very good performance compared to what we had expected. For now 24.8% in six months and the master account reached the target of 15% in 6 months. The drawdown is very little specially in the last perdiod.
We hope the next year will be better than the last but it is hard :sweat_smile:
Bye

4 Likes

Dear Community,
we think that is important talk about EURUSD situation for this month, specially about tools that we use to do trading.
First of all, the option open interest on Eurusd with expiration of 7 feb 2020, show some important level:

  • Down, area 1.1000-1.1050
  • Up, area 1.1250-1.1350
    The max pain, now is at 1.1150 (remember that the future quotes now 50 pips more).
    immagine

On the other hand, we have a strange expiration on 6 mar 2020, because we have a lot of call from 1.1150 to 1.1350. If there is this situazion and there will not be any big changes, the area 1.1150 – 1.1350 will be a strange resistance for Eurusd.
immagine

The next chart is about ATM volatility term structure. We can see that we have about 0.2% down of all structure compared to 7 days ago.
immagine

The next chart is the comparison of last month between Historical volatility and implied vol. Now we have the same value. In general, the implied vol is higher than the historical vol, so we expect a value less than actual. This means that the daily range will be less than now.
immagine

Finally a daily chart of Eurusd to understand the area and level where we will work:
immagine

Now, the PXT darwin, work with leverage x3 compared master account because we have a low VAR. In this period, since the implied vol is low compared to past months (over 10-12 months ago), this leverage, for us, is acceptable.

If anyone have question, you are welcome.

6 Likes

Dear investors,

we would like to explain how the new VAR change the our Darwin. In the past period, thank’s to VAR fixed 10%, our Darwin PXT also had a leverage of 1:4 (1:3 on average) compared to underlying strategy. This type of leverage, help the performance because we have a positive period.

Now, with the new VAR, we have now a leverage between 1:1,8 - 1:1,5 compared to underlying strategy. This kind of leverage, we think that will be until about next two months. This improvement help for the risk manager (ad the drawdown) but could decrease the annual performance. We must specify that the annual target of 30% - 40% will remain the same with max drawdown expected of 15%.

We are very happy that we received the “trending’s” badge from darwinex for our Darwin!

For today we have 1 deviation standard that could swing the price of our darwin between 129.17 - 125.13.

Bye

2 Likes