September Close +6% Return

September Closes +6%

We close out September with a +6.11% return on my Darwin asset WET.

All direct USD positions are flat and I will not be planning any overnight exposure until after the presidential election.

The plan for the last quarter of the year is to employ one of my mean reversion strategies on fairly slow moving cross pairs but have enough exposure to GBP and EUR to capture the Brexit swings on the pair as we approach the inevitable death throws of final wrestles in the negotiations.

Depending on how this performs I may well reintroduce my day trading GBP strategy into the portfolio. This is very effective but the duration of the trades normally drags the capacity and divergence of the asset down, thus creating slippage for investors. I’ll review this in the coming weeks after I have made some calculations.

I am still trying to figure out the Darwinex value at risk multiplier. The risk manager appeared to work well during the drawdown I’ve just traded through however it is a double edged sword in that it doesn’t seem to recover fast enough to reward back positive returns. As this is proprietary system I have no information to help me manage this as effectively as I would like, it’s more by trial and error which is not an ideal situation.

One thing for sure is that I will not be chasing it by changing my own strategies. I’ve been there before and will not return to go down that rabbit hole again!

Currently I have two positions building in EURGBP and AUDCAD. They are correlated but provide enough variance to spread my risk. I’ll aim to update mid month with an update on the plan.

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