This is not a buy or sell recommendation for even one of the mentioned Darwins and I don’t have any of them in my demo or live portfolio
I just want to show that it is less important to get the perfect Darwin but to have an investment strategy with well defined exits to make profit. IMO it is the same as with trading: money is only made when a position is closed, so exits are more important than entries.
All examples are calculated starting from Januar 2018 or the later PO of the Darwin.
These similar strategies should show that it is easy with a little monthly effort to keep profit made with Darwins if following simple rules:
- You buy a Darwin with an initial fix amount (in my examples 1,000 EUR).
- You sell the Darwin after a losing month and keep the profit in the wallet when you buy it again with the initial amount.
Example One - Darwin XUX where grid trading technics are used.
Even if this trader might use a dangerous strategy and is just still in profit, with this investment strategy it is possible to keep the profit once made in a save place. So there is no need to get an headace when the Darwin shows a month with more than 10% losses.
Example Two - Darwin FFV with D-Score 80
You can see here that the investment strategy makes nearly the same profit during a longer period of losing months last year and nice profit this year as a pure buy & hold strategy. It is not regarded that the 25% cash in the wallet made by it could be used for another investment and to pay investor fees.
Example Three - Darwin HFD with long periods of profitable months
Of course here a buy and hold strategy would have made more money because of long chains of winning months, also after deducting investor fees. The 85% profit left on the wallet could also have been used for an additional investment after paying investor fees and that could cut the difference significantly.
Strategy 2 follows in the next post.