Search

How to Ensure your Algo Portfolio continues to perform



Our algo portfolio, as you probably know, it currently sitting at Darwinex. Not only do we find the execution of our portfolios work best there but Darwinex have a great platform for investors to invest in your fund within a regulated environment... it's like opening up your hedge fund that anyone can invest in and it's FCA (UK) approved which gives it the highest level of financial regulation.


Each month, Darwinex allocate funds from the asset management arm to the best performing portfolios for a period of 6 months. What typically is seen is that there will be certain portfolios which perform amazingly for a period of time which helps them get allocation of fund but then the markets changed they are not seen again.


We have had our portfolio (or Darwin, as it's called on the Darwinex platform) listed for around a year now and have managed to win multiple allocations which has brough our total to 328k which currently brings us in as the 4th highest allocation currently (out of over 4000).


We're intending to be around regardless of what the markets throw at us. I've built a portfolio that is diverse across strategies and instruments but even then the markets can evolve in such a way that is outside of our algo parameters. As part of our strategy of ensuring that the algo portfolio continues to perform, we are rebalancing the algo portfolio. We have now 300+ algos running in incubation accounts.. if we see algos not performing in our portfolio or see that we are too heavy with a particular instrument, then we'll look to scale out or remove the non-performing and within the 300, see what we can bring in to bolster the portfolio.


So recently, this is what we've done to the portfolio. I noticed that we were too GBP heavy with the portfolio and I removed the worst performing (even though they were still profitable overall) out of the portfolio.. and introduced algos to trade EURCHF and USDJPY. I've also introduced another GBPJPY algo which I've been running on other accounts for over a year now which targets a larger 200 pip target and it's already had it's first winning trade in the bag.


To ensure we stay relevant, we are continuing to generate new algos with our state of the art AI engine. The best ones will go into the Incubation accounts where they will sit and trade live small accounts. If they are seen to be performing live, they will be scaled into the main portfolio as and when a slot becomes available. Currently, we are limited by computing power, however, there are some very exciting new AI and Machine Learning focused CPUs coming out on the market which will multiple the algo generation process massively. That alongside process automation will ensure that we will never have a shortage of algos to work with no matter what the markets throw at us.


For now, if you're interested in a having a look at our algo portfolio, it's available at Darwinex here: https://www.darwinex.com/invest/YFC


64 views0 comments