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Algo Trading in 2022 so far...

I haven't posted an update since the beginning of the year and surprised that it's September already... 9 months has flown by so quickly and seems to accelerate the older you get!


However, I know you're here for the trading so let's start off with the equity curve for the portfolio

From January 2022, we had an amazing run.. the algos were completely intune with the markets and as you can see, it was almost a 70% angled rise from an earlier drawdown.. we blew past that dip and peaked at the end of March.. the algos, ebbed and flowed for a month and then started to fail.. as you can see the equity started to go down and although there were a few promising signs, at each time the algos were not able to reach the previous standards I was expecting of them.


So I have spent the last few months working double time with the algo engines, refining and cranking the AI and Machine Learning infrastructure. I purchased a new super computer with triple the power of the last one to be able to speed up the process. Of course, despite that, you do need to give the algorithms time to show their true colours within the incubation accounts. It's also during this time you reflect on your workflows, your mistakes, how to improve... the portfolio had previously won equity allocation within the Darwinex platform.. in fact, I think we had almost 9 months from the 12 months it was participating where it had received equity allocation. And since the drawdown from April, 5 months... nothing... until now...

The month is still not over but there's promise again (as you can see from snapshot above).. currently our portfolio is ranking in position 17th out of 4375 other portfolios.. we are doing better than the other 99.61%. The equity allocation doesn't happen until the end of the month but we're seeing green shoots again! All the effort is paying off again!


There are a couple of algorithms which out of the improved workflows and testing seem to be showing amazing potential. Right now, the equity curve is the highest it's been since the last 4 months and hopeful of it pushing past the current drawdown (started in April). There are a good few algorithms in the portfolio right now delivering returns whereas previously, we had less.


The goal for any portfolio manager is to maximise returns and minimising drawdowns. The markets will continue to throw curveballs at us constantly but being able to adapt will allow for continued success. I know long term, we have a process here that will continue to deliver returns but I want to improve it by being able to shorten the time to identify any failing algorithms and hence minimize drawdowns yet have the most efficient algorithms in place for current market conditions. It will always be a work in progress.


So, yes, we are still here.. working in the background and getting better all time time! The link to our investible portfolio is here --> Forex Algo Trading YFC Portfolio


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