Hi Everyone

After Monday's update, both our Darwins have improved, especially the Aggressive Portfolio, improving from 4,48% to 18,69%. This was largely attributed to the purchase of NEM (Largest Goldmining Company in the World), which traded at $52-80 for only a couple of minutes at the open on the 5th of June, and was added to the Aggressive Portfolio through a limit order. This has since attributed to 11,7% of the returns. See the images below.

Both portfolios have the best stocks selected by the program currently with 2x defensive Healthcare stocks (GILD and BIIB), 1x Online Gaming Stock (ATVI), and Gold mining (NEM -only on the Aggressive portfolio), and I am comfortable with the positions as they stand. These positions make complete sense given the part of the market cycle we are in, as well as Covid-19 related influences.

Those that wish to follow future updates on this topic can simply select the "Follow Post" button on the right-hand side and you will receive an alert when new updates are posted.

It is obviously early days, so let's give it some more time to really show how good the program is. Remember to select the "Follow Post" button on the top right should you wish to be notified of future updates.

If you have any questions please contact me and I will answer them a.s.a.p, and post them on the FAQ page.

Regards and keep safe

Quintin

Hi Everyone

Getting the Darwins ready for Investment has taken a little longer than initially expected.

It was expected to be ready after 31 days, but there are also a certain amount of trades that need to happen for Darwinex to have enough data for the Darwin to be registered.

Because my Portfolios do not entail a lot of trading, but rather holding in longer time-frames (Similar the Hedge Funds), the starting date for the Perfect Stocks Portfolio needs to be extended.

I have increased the number of trades I usually do to get the Darwins ready for investment. The Aggressive Portfolio does trade more often than usual and will be ready by Friday 3 July (on American Independence Day).

With the Perfect Stocks Portfolio, I have only managed to do half of the trades necessary for creating the Darwin. I expect this one to be ready by mid to end of July.

In doing the extra trades I needed to trade in shorter time-frames. The extra trades has caused a slight negative effect on the performance for the first month on both portfolios.

Another factor that has negatively affected both Darwins, is the minimum trade size for stocks on the S&P500. Both accounts started with around $1000 and with some shares you can only purchase a minimum amount of $1500 (Which is 150% exposure in one share). This was the Case with Biogen, where 5 shares were the minimum amount to trade @ $290.

With the current account, I am forced to only have 2-5 positions and I am overexposed with about all the shares. Trading with such large chunks of the portfolio is definitely not ideal and is causing much more volatility than would normally be the case. Normally there would be between 8-15 positions at any given time, and with some short positions to limit downside corrections.

For this reason both portfolios had larger exposures than normal. With the unexpected large 5,5% drop in the S&P on the 11th of June, both portfolios were hard hit because they had even more exposure added about halfway through this drop (as I had open orders about 2% below the opening levels). This caused overexposure in both portfolios, and I had to close positions at a loss.

Both have done well, but the aggressive portfolio has a short position in the financial sector, which helped overall.

For now, the portfolios will continue to have large exposures in certain shares, as it is unavoidable. I also need to accommodate more diversification until our balance increases to allow smaller positions in relation to the portfolio size. After today's close, it looks like the Perfect Aggressive Portfolio will end with a 2% growth (1,77% loss currently) for the first month. Below you will see we have 3 more days to go before the Darwin will be active.

Below you will see 7 trades were done, of which 5 were profitable trades (71,43%).

As mentioned 2 shares needed to be closed because of overexposure on the 11 and 12 of June, which was a setback, but should not happen in the future. We needed to do more trades to get enough experience by 3 July.

Both portfolios have positions in the right sectors and these positions have improved to show even higher returns in the weeks to come. I am expecting an improved performance over the next few weeks because of this.

The Aggressive Portfolio currently has 6 positions of which one is short in the Financial sector. Most long positions are near support levels and some near long term support levels.

I will announce on Friday morning the code for the Darwin I created for the Perfect Aggressive Portfolio. Hopefully, I will get the PAP short name. For those that want to invest on Friday, will be able to do so for the minimum amount of $200.

I will keep the updates coming more regularly as it becomes active and everyone will be able to view it on the Darwinex platform from Friday.

Regards

Quintin

Just a quick update on our Perfect Aggressive Portfolio which has gained enough experience with yesterdays close to receiving ratings on the 12 Darwinex Investment metrics.

We received pretty impressive marks to start with, although it has not been the best of starts to our first month. The Portfolio received 4 marks higher than 9/10 and 6,8/10 being our lowest score before having investors or the experience needed.

The first metric (Experience or Ex), we would need to do quite a few more trades over the next 12 months. But this will increase over time.

The last metric (Capacity or Cp) measures if the DARWIN’s percentage performance falls as its number of investors grows. The higher the score, the more capital the DARWIN should be able to handle without its returns being affected by the divergence.

From tomorrow we should start getting investors on board, so Darwinex can measure this metric.

We have completed 30 of the 31 days needed to create our Darwin, and tomorrow we will be able to create our Darwin for the public to allocate funds to it.

Our returns after 30 days are 8,95%, which is 11th position out of 5000+ Darwin Strategies and a very competitive start to our first active Darwin.

I will post tomorrow to update on the short name for the Perfect Aggressive Portfolio. Hopefully PAP.

Regards

Q

Morning and a quick update

Our first Darwin (QAJ) has been registered this morning. It will take one more trading day for it to be available for investors and it should be ready on Monday 6 July.

For those that want to invest in our Darwins, or that would want to monitor our progress, can create an account using this link. (There are no charges)

For more detail on investing in our Darwins see this post.

Awesome. Looking forward to it

Hi Everyone

During the last month, I focused on getting the first two trading strategies (Darwins) listed on the Darwinex platform. I started trading the Perfect Stocks Portfolio and the Perfect Aggressive Portfolio since 25 and 29 May respectively. 31 days needed to pass and a certain amount of trades needed to be done for the Strategies to get listed. It has been a stretch to do all the required trades to get listed, but I managed to achieve this with the Aggressive Portfolio, as this Portfolio does trade more often than the Balanced approach of the Stocks Portfolio. 

I have created the Darwin yesterday and it will be listed on the Darwinex platform under the QAJ ticker number on Monday 6 July. 

So how did all the strategies on Darwinex do, and how did the QAJ Darwin (Perfect Aggressive Portfolio) compare to them? Well, there are 5343 listed Darwins of which 4132 have actively traded during June 2020. All of them competed for the 6 000 000 Euro asset allocation by Darwinex in June. About 20% of these, (800+ Darwins) managed to make positive returns, with 12,06% being the highest performer over the last 30 days. QAJ would be in 10th position currently among 4132 Darwins for returns over the last month. That is a pretty impressive start for the first month and over time we should see QAJ and our other Darwins continue to the Top spot and then move further away from all the other Strategies.  

For my first of 3 challenges, I am still vowing to eat my hat or something Veil if one of my Darwins does not finish in the Top50 (Top 1,2%) after 3 months, in the Top5 (Top 0,1%) after 6 months, and the best performing Darwin (Top 0,0024%) after 1 year for highest returns. 

Darwinex now has enough information to give the QAJ Darwin scores on each of the 12 investable attributes seen in the screenshot below. It has scored very well after the first month, receiving 9+/10 in 4 categories, with 6,6/10 being the lowest score of the 10 applicable attributes. The first attribute, Experience (Ex) can only improve over 24 months and with constant trading, so this will develop over time. The last attribute, Capacity (Cp), measures the ability of the Darwin to accommodate more investment capital with the least divergence between the trader and the Investor. Since we can only have Investors from Monday, this score will still be zero.  

The 7,92% return by QAJ thus far could mean a return of close to 23,7% after 30 days for the Investor, as they have the option to gear their investment up to 3x their equity amount. They have the option to choose 1x, 1,5x or 3x when they open their account at Darwinex.

For those that still need to open an account can do so using this link . There are no charges in opening an account and you could just follow us and view our progress on the platform, or use the Demo account to play around and see how your investment would grow by investing in our (or other) Darwins. You could even create multiple demo accounts if you wish. I would strongly recommend this, so everyone could experience firsthand the benefits of having the best trading strategies in the world at your disposal for Investment.  

I have updated the FAQ section on my website, so please read through this section, as it covers quite a few of the general questions being asked and with regards to opening an account.

If you have ANY questions, please feel free to mail me at perfectportfoliosa@gmail.com, or post on our Forum if you think others could benefit from your inquiry or comment.  

Thank you to all those that have joined already and your support and interest thus far. Follow the Forum categories or Topics on our Forum should you wish to be updated more regularly.

I will keep everyone updated on the progress of our second Darwin, the Perfect Stocks Portfolio, which should be listing during the month of July.

Best regards and safe trading

Quintin

Morning Everyone

I have just been informed that our first Darwin QAJ is now ready for Investment.

It seems as though they have adjusted the returns to offer it at a lower risk for investors and to protect them from downside losses. I will update on this later.

The anticipation is finally over and everyone will now be able to allocate their funds to our QAJ Darwin. US Markets (In which this Darwin trades) open at 3:30 pm (GMT+2) in the afternoon, so the latest updated prices will be when the markets are open in the US.

For those that need to open an account can do so here.

After yesterday's announcement regarding the QAJ Darwin and the lower returns shown, I will explain why this is the case and that this should change going forward.

For Darwinex to be able to offer trading Strategies as an Investment option for investors, they needed to comply with certain regulations by the FCA (Financial Conduct Authority). The FCA regulates Banks, Organizations, and all Financial Advisors operating in and around UK borders. The FCA protects investors worldwide from fraudulent, non-ethical, and poor integrity policies by Financial services firms.

Darwinex has revolutionized the ability for Investors to Invest in Trading Strategies by traders. To be able to do this and comply with the FCA, Darwinex is required to protect the Investor from mismanagement or erratic trading by the trader. For this reason, they have implemented the VaR (Value at Risk) limitation to each Darwin or Trading Strategy.

This VaR (95%/month) is currently set at 6,5%. This means that 95% of the time, Investors will not lose more than 6,5% of their investment over a 1 month period. This is a very low-risk option and is even safer than the S&P500 index. Put another way, every Darwin will typically have 1 in 20 months, where it could lose more than 6,5% of its investment capital.

My Darwin, QAJ, takes an aggressive approach (high gearing), but also has to trade with large exposures in certain stocks, because of minimum trading volumes. This and the fact that the S&P500 had an extreme 5,9% drop in a single day (11 June 2020), that has caused the portfolio to have a very big drawdown in a single day. The portfolio dropped from +17,94% to -2.43% in a single day with about 4,5 gearing. It has since recovered and in positive territory.

Although this was an extreme move, the Darwinex Risk manager identified this as a big deviation in the portfolio value during our first month. To protect future events like this for investors, Darwinex implements a VaR ratio to protect future risk for investors. This factor adjusts continually as time progresses and will always predict the likelihood of a large losing month or event by any Darwin. 

For now, this factor is there to protect the Investor, which is a good thing in my opinion, although it does show lower returns currently than my underlying portfolio. This will improve as we do more trades and Investors should have the same results as my strategy over time. Another benefit is that Darwinex has also given the Investor the option to increase the risk (and the rewards) regarding their Investments. Investors have the option to use the 3x exposure on offer to increase their return to match the trading strategy and in most cases exceed the returns achieved by the underlying portfolio.

Going forward, the trading sizes will continue to improve as the funds grow, and the portfolio will be more diversified (short positions too), and thus making future deviations much more aligned with the overall growth. I will continue to strive to improve this so the VaR factor would be to the benefit of the Investor to achieve the same and better results than the underlying strategy.

Hope it makes sense, that these safety measures are in place to protect all Investors.

Have a good one

Regards

Quintin

Just a screenshot of the Demo portfolio I created on the 15th of May. It follows the same risk as the Balanced Portfolio does. It has done 20,7% thus far and is a better reflection of what to expect, as it uses a $10000 account size. Position sizes are better and it currently has 11 positions most of which most are long.

It is not always easy to pick the bottoms, as the start indicates, but over time all positions will align towards their target prices.

Morning Everyone

Some good news regarding our QAJ Darwin (Perfect Aggressive Portfolio), and our soon to be (Perfect Stocks Portfolio) Darwin.

We will be increasing the trading amount on both soon, and this will ensure that the returns for the Investors will correlate much closer with the returns of the Underlying Trading Strategy.

Below are our Demo Portfolio - and QAJ (Underlying Strategies) since inception. The demo portfolio has started with $10000 which makes the minimum trade sizes perfect for our Share Selection Program. It has done 24,49% over the 2 months since started and still boasts a 100% winning trade record.

The QAJ has 77,78% winning trades which is close to the 80% we expect to maintain. We did have to increase the number of trades to get the Darwin listed at the start of July, which caused some premature trades to take place.

We should now get the VaR (Value at Risk) from 42% to the 15% level and ultimately to 10-12,5% where we would like to run the Aggressive Portfolio's risk.

Our Stocks Portfolio and Demo Portfolios run on Balanced Risk and should be at around 7,5-10% (VaR)

Have a good one

Hi Everyone

Just to update you all on the 2nd Darwin (Perfect Stocks Portfolio).

I have completed all the necessary trades on Monday and it is ready to be listed as QSH on the Darwinex platform. Unfortunately, Darwinex releases new Darwins on each Monday, so Investors will have to wait until Monday 27 July to be able to invest in it.

Both trading accounts will have increased trading funds at the end of this week, so Investors can expect close to the same returns and better in the future.

The demo portfolio has nearly 30% return after a little more than 2 months and still boasts a 100% profitable trade record. It has entered into 13 trades of which 4 have been closed in profit and 8 out of the current 9 positions are in profit.

Hi Everyone

It has been two weeks full of news, but a lackluster performance by the markets over this period, as most markets are moving sideways in anticipation of the Feds next move.

Well, it probably won't be much different from what they have been doing since March, and the results should create much of the same. Quantitative Easing, Lowering Interest rates, and increased lending has been driving this market upwards as the FED throws Trillions of Dollars at the market in its road to recovery. 

With Interest rates and Bond Yields as low as they are, there is just one place to go, and that is equities. If they throw more money at the market, it will continue to rise. But how much further can they go?

Well, looking back at the 2008/9 Financial crisis when QE and Lowering Interest rates were used. The market (S&P500) increased by 80% from its lows over a 13 month period. These strategies were used with great success, but it was spread over a longer timeframe. The Fed obviously has seen that these measures work and have been implementing them this time around at a much faster pace than in 2009/10. For this reason, Equities not affected by the pandemic were responsible for the fast recovery in the market.

My program continues to have a bullish outlook on the Stocks I monitor, with Financials having the most negative outlook going forward.

Because of this sideways movement both our Darwins (QAJ and QSH) have not gained momentum yet over the past 2 weeks. I do like all the positions we currently hold and from a Macroeconomic standpoint, we are exposed in the right sectors, with some gold and Nasdaq Tech exposure as well.

As most of you know, my Portfolios or Darwins are managed as typical Hedge Funds, with exposures ranging from 100% to 350%. The QAJ Darwin has an aggressive approach and has higher exposure, while the QSH Darwin has a balanced approach with less exposure. As mentioned on the Forum the Darwins are not giving Investors the same returns as my Trading account and this is unfortunate, as the higher returns are what we are after. Darwinex has listed this Darwin as such a Low Risk/Low Return Investment that my Investors will only receive an 1/8 of the returns of the trading account (Underlying Strategy). And with the 3x gearing they will receive about 36% of the returns made by the Underlying Strategy.

I am still working on resolving this issue for all my Investors, and hopefully, I can sort it out within the next week or two. Otherwise, I might suggest we use a pure copy trading platform to resolve this issue.

The funds in both accounts have been increased last week, to lessen exposures in certain stocks and to resolve the Investor return issue. Darwinex has also recently decreased the minimum trading lot size for Stocks to 1 share, which is a huge help with smaller stock exposures in each portfolio, and will also help to align Investor returns with the Trading Strategy. I will keep everyone posted on this. 

For those that want to read more on Mean Reversion as a trading Strategy can read more on the Forum. 

For those interested in learning more about Investing in Darwins must make a point to join the Webinar that Darwinex will be hosting at 7pm GMT+2(South Africa) / 6pm BST (British Summer Time) tonight.

Use this Link to register. They will be covering topics as explained below.

This is an introductory webinar for investors who are new at Darwinex.

In this webinar you'll learn:

• What Darwinex is and how it works for investors

• About the regulation and the solvency of the Exchange

• How to buy your first DARWIN and

• How to build your first demo & live portfolio

There will be a Q&A session at the end where we'd love to answer any outstanding questions.

Safe Trading and enjoy the webinar.

Quintin

Hi Everyone Since my last post regarding the reduced return that Investors are getting in comparison to my main trading strategy, I have shifted my focus completely in resolving this issue. After researching and testing quite a few changes over the past 8 weeks, I am finally satisfied with the changes and the way forward. Without going into too much detail, Investor returns at Darwinex are mainly influenced by Volatility, Drawdown, Value at Risk (VaR), and regulated by their risk managing program. Addressing each issue meant that I had to incorporate Volatility into my program with trading selections and timing of trades. I had to reduce the exposures quite considerably and decided to add new Portfolios (Darwins) specifically designed to achieve minimum drawdown and giving the highest future returns for Investors. I have also added the 12 most liquid Forex trading pairs to my program, as these do give better returns with the risk set out by Darwinex. For the reasons above, I have added 1 new Stock Portfolio and 4 New Forex/Index Portfolios for Investors to Invest in, all with varying degrees of exposure. In the past, maximum exposures ranged from 200% to 350%, but it has now changed to vary from 35% to 200%. With these changes, Investors will now receive superior returns to the main trading strategy in most cases, which is exactly what I envisioned. With all the different portfolios, Investors will also have the ability to diversify into more asset classes by Investing in Indexes, Forex, Commodities, and Stocks, all through the Next Level Share Selection Program. I will go into more detail regarding each portfolio (Darwin), as well as suggestions for which should give the highest returns, in a future post and on the changes made to my program. Currently there are 8 portfolios I manage, of which 4 are already available for Investing, 2 Stock Darwins (QSH and QAJ), and 2 Forex Darwins ( QWB and QMW). The 2 Forex Darwins has done exceptionally well, doing  4% and 5,97% over the past 30 days and the Stock Darwins achieved 0,11% and -0,22% over the same period. Returns by the Stock Darwins will improve as I am still reducing the risk profile on these. (More detail on this in a future post)

Investors have the option to use the 3x gearing available on the Darwinex platform, which could give between 12-18% return when Invested in the Forex Darwins over 30 days. With the current risk profile, I expect to do between 1 to 4,5% on a monthly basis, with Investor returns between 3 to 13,5%. The 6% done by QMW over the past 30 days should be seen as an exceptional result, rather than the normal range. The past 2 months might be seen as one step forward and 2 steps back, but it has made me take a much deeper look into the risk of all the asset classes and reduce downside risk through improved metrics. I am excited to have the next 4 portfolios (Darwins) roll out over the next 4 weeks and will keep everyone updated. Through all 8 portfolios, 104 trades were done to date, with 84 trades in profit. This gives an 80,76% winning trade percentage. This is up there with the highest of all the Darwinex traders. I expect to improve this to above 85% going forward. Another interesting aspect of our Darwin portfolios is their estimated Capacity. The current 4 listed Darwins could facilitate total investments of $34mil and even up to $230mil (QMW), without affecting the returns of Investors. This is made possible due to our positions being held in longer time periods and more quality trades rather than quantity. Over the last few weeks, my program has picked up that the dollar has weakened against most currencies since its earlier highs in March/April. We are currently near testing levels for most currencies, so this is a good opportunity to buy Dollars. I will also be utilizing this opportunity through my 2 Forex Darwins, so if you want to benefit from a strengthening Dollar by adding to your Darwinex account, as well as Investing in our Forex Darwin, it could have a major effect on your Capital. I do still expect the Rand to weaken against the Dollar to R21-80 (upper limit) over the next 12-18 months. We could re-test the R16-30 level,  which is currently the lower end of our trading range. We did bounce strongly off this level on the 21st of September. For those that want to open a Darwinex dollar-based account, can do so through this link or if you want to know more about how my program does trading selections, visit the website here. For more information on the safety and security of your money on Darwinex, read here, and other information here. All the best and safe trading for everyone. Quintin