GENERAL BALANCE MARCH 2019
Hello Investors, here an update regarding recent performance of VRT during March.
A bit of difficulty for last two weeks, due to the continuous alternation of volatility and direction of some pairs during some market phases. March although it has granted some chances of recovery for some strategies, it is confirmed a difficult month for some others, in particular for the Trend components on GBP which were expecting more prolonged movements not verified or at least only in part. The portfolio was quite conservative in the last stages, the activity was slightly reduced due to also various filters that face the market trying to avoid the fog present in the last moments and weeks, the exposition was more homogeneous almost during all the parts.
GENERAL BALANCE FIRST QUARTER 2019
The past quarter was quite difficult to deal with, a general feeling that has involved performance of several methods. Over the years, there are phases of difficulty due to different causes, each strategy tackles them sooner or later and these depend on the fact that from the market one cannot always take advantage of a particular characteristic. The first two months have been particularly tricky to deal with, some betrayed pair have been in a real gray area from which they still have a hard time getting out, there was a real lack of volatility which although generated positive returns for similarly reversal portfolios or strategies that make use of contrarian methods, it has put into serious difficulties strategies with a higher LA and which are quick to select market routes. Such situations have sprouted in the course of the month of February, the worst of the quarter. During the previous month, the continuous movements generated due to the British political situation, generated positive movements for the quote and some strategies of the portfolio, and negative movements for other components, making sure that there was a recovery of about half of the losses of the quarter, but not enough to make it green. The whole thing could end in a better way, obviously even worse. We continue to emphasize that these phases, as they may seem complicated and tricky, recur over the years for different reasons, even if they do not depend on political factors and the like, it is part of the nature of markets and nothing more.
ABOUT THE ALIGNMENT
We continue our research to ensure that the portfolio has a more homogeneous exposure and greater diversification during its cycles. For the first point, we are continuing to work trying to ensure that the portfolio is as homogeneous during its phases, trying to limit the correlation and avoiding distorting the previous alignment. For the second point, we have come to the conclusion of a study on several other solutions to make this portfolio more diversified, which starting from the next quarter, will be able to take advantage of new strategies that will join the precedents that will remain unchanged in their entirety, also by a new traded pair, the Gold (XAUUSD). These additions are not to be considered as a substitution of the previous techniques, we stress once again that great changes are not necessary during certain phases which are to be considered normal under predetermined market conditions, and that these additions come from a deep study that we cultivate week after week since always, able to improve where possible the situation of our personal Algo Portfolios. These components showed us that they would bring profit in the previous years as well as in the previous months and are inserted for a future benefit, not as a replacement but as a supplement. Since we know well that it is necessary to do things very calmly, Darwin is more like a big ship to maneuver, all the changes will be made with extreme slowness on the underlying TwisterFX to avoid possible problems for the Darwin.
Thanks to Investors that are still on the Darwin, considering the picture on a yearly time-frame, the Darwin has experienced an H.W.M. of its Quote coincided with an H.W.M. of the AUM, and now it is experiencing a low for both the side, we'll see over the long run.