Investment Portfolio Forward Test

Darwin Asset WET is “tethered” to another pair of Darwin Assets

I have a theory about investing with Darwinex Asset Classes “Darwins”and being the trader of the Darwin Asset WET I am testing a method of identifying other Assets by “tethering” them to WET.

Using my own metrics and performance data I aim to find similar performing Darwins but with limited correlation in parts of the underlying strategies but crucially with correlation in other elements of the strategy.

Additionally I will be using a fractional investment method over a period of time to allocate the $15K demo margin to the three Darwins which will be: WET (mine), SYO and HFD.

Monitoring the performance of the traders will be at high level and light touch, as long as consistency and activity is stable I don’t need to spend too much time on this. Perhaps an hour per week. The Darwin Assets will be changed if my criteria isn’t met but ideally this is a last resort due to the short timespan of the test.

The aim of this test is to achieve a return above inflation on cash held over a minimum 3 months to a maximum 7 month period after costs.

I will update the progress further down the line.

As usual, this post IS NOT financial advice!

High Water Mark Fee

High water mark fee at 1.46%

The demo investor account opened in December had it’s first performance fee charged to it. My Darwin “WET” had only just recovered after a drawdown but enough to be in profit and a fee to be justified. This was a modest 1.46% return and the fee is 20% of this. So $36.

Quarterly Performance Fee

Investors only pay performance fee if the Darwin is in profit and if the next quarterly watermark is higher than the last. This way the investor only pays for performance of the Darwin (Asset) Manager (Me).