In my last post, I mentioned that our portfolio had just eclipsed the 50% return mark for the first time and was currently riding 4th position out of over 4000 other trading portfolios on Darwinex.
Well, September 2021 has completed and how did we do?
Yes, we came 11th and received €132k allocation of funding which was great but would have even better if we were able to keep 4th position or within the top 10. Still, there's no guarantee in trading and markets are moving but if we had an extra day, I'm sure it would have been a higher position as we had two big winners on the 1st October!
Anyway, I thought I'd look back at how we've done in the monthly Darwinia contest over the past 12 months and here are the results
Month | Darwinia contest position |
|---|---|
Sept 2020 | 49th out of 4121 |
Oct 2020 | 72nd out of 4129 |
Nov 2020 | N/A |
Dec 2020 | 4th out of 3477 |
Jan 2021 | 31st out of 3548 |
Feb 2021 | N/A |
Mar 2021 | 21st out of 3675 |
Apr 2021 | 42nd out of 3924 |
May 2021 | N/A |
Jun 2021 | 70th out of 4214 |
Jul 2021 | 97th out of 4279 |
Aug 2021 | 34th out of 4398 |
Sep 2021 | 11th out of 4317 |
So going back to September 2020, we've managed to get a top 100 position 9 months out of 12. A top 100 position out of 3500 other systems means we are in the top 3% of trading portfolios within Darwinex for the majority of the months. The Darwinia contest only lists the top 120 systems every month so where we have a N/A, it means that we didn't make it in the top 120 in the month - can't win every month :). The other thing to note is that after October 2020, about 20% of trading portfolios dropped off for some reason.. no idea why that would be but interesting to note and it's been increasing again ever since.
Market behaviour and conditions are always changing so how have we been able to stay relevant for such a long time? We fully embrace that the markets are always changing, it's just their nature... our response is to use algorithms which are relevant for the current market conditions. And how do we do this? We use AI and Machine Learning technology to scour the markets for patterns and incorporate them into algos... this translates into 300-400 algos which we are running all the time in our Incubation accounts and when we see a trading algorithm that is performing particularly well, we incorporate it into the portfolio. Similarly, if an algorithm has gone out of favour, we scale it out or remove it completely. They all continue to run in the Incubation accounts because market conditions may return when they become favourable again. At any one time, we are running between 3-10 algorithms in the portfolio ensuring that we are not top heavy for any correlating algos to keep risk down.
We believe this is the way that will keep our portfolio relevant for as long as we are trading. We will be adapting and in-synch with whatever the market is doing and this strategy has proven to be working out well.
If you're interesting in learning more about our trading portfolio or allocating some capital to it, we have partnered with Darwinex who offer it under a fully regulated FCA asset, link here:
Good job, confidence and above all risk control!