So, demo portfolio… Why not real? For obvious reason. I have my own strategy and I invest only in my own trading accounts. For diversification goal I would invest in completely different instruments rather than in someone else’s Darwins.
The goal of this portfolio is to investigate different Darwins, to demonstrate my approach to Darwins’ selection and to check what the possible investor’s outcome could be.
The portfolio will consists from 5 Darwins.
I do not find reasonable to over-diversify it with 10-20 or more darwins. To find reliable darwin is not easy and by increasing our portfolio we just increase chances of getting a bad one.
Also, as an investor I do not want to spend much time playing with my portfolio. The more darwins are in it, the more time-consuming would be to watch, analyze, make decisions, rebalance… I do not want it. Investments must not be complicated.
- D-score >60
-DD <= 20%
Also, I look at profitability. Forex is risky and my general rule for my own trading is that yearly profit is expected to be no less than three times max drawdown. I am not sure if I find such Darwins here but it is a kind of a benchmark that I have. A darwin with 10% drawdown and 10% yearly profit is not too appealing for me.