Quarter Q2 Shaping Up

Q2

Quarter is shaping up nicely (in the underlying strategy anyway!) with returns hitting my personal goals of 1% per week. I have remodelled areas I thought were weak spots and that seems to be paying dividends. One point was my over dependence on volatility and trend trading. I have brought back in my range trading methods and compromised entries for better overall trade management. So trading GBPUSD with an ATR of under 100 over a 5 day average no longer confounds me, on the contrary by assessing all my previous trades I think I have found a much better and reliable edge but it does require a lot more patience and discipline than I have ever had to engage before.

Resistance Training

Trading with Darwinex can sometimes feel like a never ending weightlifting session. After a few months of managing drawdown the Darwin risk manager seems to go the other way and holds down any kind of fast recovery, this is no good for the trader or the investor.

May June slow recovery despite +10% in the underlying

If an argument can be made to the risk manager along the lines of, “great, protect me from extensive risk if you can but stopping me recover AFTER I’ve taken the hit, well wasn’t it my decision to take the risk in the first place?”

I’ve had this stagnation before with my Darwin WET and it does drive me a bit nuts, with 15% + return in the underlying strategy over the past 120 days (and even this is not actually recorded accurately) I am left once again frustrated with the 6% Value at Risk performance of WET and lack of dynamism from the Darwinex Risk Manager. Having said that it is probably the best at what it does in the “social trading” platforms currently available.

Hopefully we will start to see the risk manager relieve it’s death grip in the next few weeks as my trading history smooths out again and we can return to a reasonable performance more reflective of the underlying trades.

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