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.

QUA - Quantessence

Dear Darwinex Community,

we want to take the chance to introduce ourselves and our strategy in order for you to not just evaluate our QUA DARWIN by the numbers but also by who we are and what we do.

Who we are

Quantessence is a software company specialized in researching and developing algorithmic trading solutions. The company was founded by Tim Fass and Ole Fass. The heart of the company is our fascination for the technological and theoretical challenges that are met when modeling financial time series.

The strategy behind QUA

QUA is the result of a portfolio of proprietary quantitative trading systems. Each of these systems aim to capture the different characteristics of the financial markets while being uncorrelated to each other for reasons of diversification. The strategies apply basic indicators that capture trend, reversion and volatility in combination with pattern recognition techniques. The estimated risk is the result of extensive statistical observations with the objective to not just model the worst case, but the worst case of the worst case. All strategies are thoroughly tested for data mining bias.

Some advice to investors

Despite all the numbers there is still some unknown left if you decide to invest in a strategy. This becomes especially evident if a strategy goes into an extended drawdown period. The longer the drawdown the more one starts to question the decision of having invested in a strategy. Our strategy is no exception. According to our risk modeling and the past years of trading we know that our strategy enters drawdown phases of up to 6 months. For us these phases are easier to sustain because we can reassure ourselfs by confirming the models. Of course we will communicate this reassurance to you in times of drawdown. However you should be mentally prepared to invest your capital for a minimum of 6 months in order to not make the mistake of buying high and selling low.

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

Best Regards
Ole Fass

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It’s great to see you guys around!

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Hi Ole!

Thanks for your post. I’m a investor, and QUA now is part of my portfolio.

Good Luck!

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Hi,

thank you for investing. If you have any questions just ask.

Regards
Ole

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Hi @Quantessence,

First of all, congrats for your great results. It is really great to see how good traders are trading with Darwinex, and a pleasure to have you opened this thread.

Your results are impressive, but I usually let some time before investing into a Darwin that just migrate to Darwinex from another broker. I guess many investors will think as me, but I am confident that after some months in Darwinex, yours is going to be a reference in the Darwinex’s Universe.

I have a questiion from you. I give a lot of importance to La attribute, since I look for traders that practice a good money management.

Eventhough your La rate right now is excellent, it hasn’t been that way in the past, where we can see it goes up and down prette easily.

Can you explain why do you think your La attribute has sometimes such a bad rate? At the same time… Can you explain what kind of money management you do and how do you protect from big losses?

Thanks in advanced.

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Hi @Yofxtrader,

I’ll start by outlining our money management and then analyze the LA score:

Money Managment

We designed our money management by going from the macro perspective to the micro perspective. While usually one assumes a risk limit for each single trade (like a maximum loss of 1%) our money management has the goal to limit the overall risk to 20%. This is simply for the reason that we feel more comfortable knowing that in the worst of times the system will loose a maximum of 20% as to know that a single trade can loose 1%. Now that we wish to not loose more than 20% no matter how many trades are going against us, we calculate the size of each trade according to this target of a 20% maximum drawdown.
Furthermore to reliably estimate the 20% drawdown limit that each single trade gets his size from, we stress each strategy in the portfolio by feeding it out of sample data that has been oversampled and by varying its profit curve with a monte carlo simulation. We then assume that the strategy will behave like the average of these simulations and weight it accordingly.

LA - Score

As far as I understand the LA-Score gets worse when a looser has been open for a longer time than a winner. The ratio of the TP vs the SL plays some role in this. If the TP is half the size of the SL then naturally a winner will be closed earlier than a looser. Some of our strategies have a TP smaller than the SL and some have their TP much higher than the SL. So the reason for the volatile behaviour of the LA-score of our QUA is that in times of low scoring those strategies with a lower TP / SL ratio are more active while in times of a high scoring the strategies with a high TP / SL ratio are more present. For the last period of low LA-scoring I can say that the strategies with a high TP / SL ratio have been reworked, so that the ones with a lower TP / SL ratio remained and weighted the LA score down.

I hope this answers your questions.

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Hi @Quantessence,

¿Have you considered improving the Capacity attribute?

Thanks

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Hi @Aimak,

right now our main objective is to develop additional strategies for the QUA portfolio in order to further diversify but also to reduce the impact each strategy has on the market.

Regards

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What level of investment do you have using your algorithms.

Cheers.

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I mean in of your own capital.

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Hi @dirtychee,

we are personally invested with a moderate five-digit amount of euros.

Regards

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+180 investors in one month! Impressive!
Deserved, keep on with good trading!
:thumbsup:

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Hi @CavaliereVerde,

thanks. We are quite impressed ourselfs.
It is really motivating to have ones work appreciated.

Regards

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Congratulations guys ! Impressive performance !! I m happy to be one of your investors !

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Hi @Matofpupps,

thanks for investing! We are glad that people here at Darwinex trust in our strategy.

Regards

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@Quantessence
I just noticed that your equity has been increased from 2000 to >10.000
Nice move! :wink:

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Just wanted to quickly say hello. I have been casually following you since 2012. Nice to finally see you here.

Welcome to Team Darwinex :sunglasses:

Impressive trading

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Such modest guys)))
Why did not indicate that they took the 2nd place in the competition ? :grinning:
Automated Trading Championship
:+1:

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Hi @KlondikeFX,

thank you for your welcoming words.
2012 seems to be such a long time ago :wink:.

Regards

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Hi @Sergey5,

yep - that was us at the beginning of our trading venture.

Regards

1 Like