Interview with nanotrade (DARWIN $FER)
nanotrade is the trader behind DARWIN FER and other 8 DARWINs. $FER stands out because it’s had a D-score around 70 since the beginning of 2018 and because it’s included in the default filters “Under the radar” and “Good scores“.
nanotrade, tell us a little about yourself. How did you get started and how long have you been trading for?
I’ve a Science degree and I’ve always been interested in markets and possible behavior patterns they entail. My first approach to the market was watching the movie “Pi“.
Later on, during the financial crisis of 2007, I read about automated trading. Then, some years ago, a friend started doing online forex courses. It was through him that I discovered a platform for generating automated strategies. Then, some 3 years ago, I started creating them myself.
The first thing that attracts attention is the number of DARWINs you have currently listed. Could you explain how you can manage 9 accounts at the same time and the characteristics of each of them?
I can manage them because they are automated strategies located in different computers in the cloud. This makes it possible for them to be connected to the market 24 hours a day without interruptions.
I receive automated email alerts when something needs to be checked on the strategies. At the same time, I receive email alerts when a strategy’s parameters need to be updated.
The rest of the strategies use machine learning algorithms of various complexity that find patterns formed by different indicators. Those patterns predict price direction in the next 3-5 candles which is why orders get closed automatically after that time period.
Do you plan to list any other DARWIN?
For the time being I don’t have plans to list any new DARWIN. In the future I probably will in order to exploit market inefficiencies that exist.
You maintain a site called RobinFund. Could you tell us what your goal is with this site?
My goal is to enable Darwinex investors to familiarize themselves with my strategies’ behaviour through a backtest and have, in this way, more information before they invest.
I also use it as a letter of presentation and a way to introduce Darwinex to potential investors.
As an investors, which DARWINs would you always have in your portfolio? And if you couldn’t choose from nanotrade’s DARWINs?
I’d say it’s early to invest in my DARWINs due to lack of experience of some of them.
I’d look for those with the lowest VaR and the highest Experience and also for those that are promising because of their underlying algorithm, like LSN.
Personally, I’d choose FER and SST, because of their Experience and D-score.
PTX has little experience but the the cointegration principle it uses is quite solid.
In regards to DARWINs that are not mine, I’d look for those with most investors, high Experience, high Performance and low DD. I’m sure any of the top 20 after applying these filters would give me profit on the long term.
What are your short, medium and long-term goals at Darwinex?
On the short term, I aim for my DARWINs to gain at least a score of 5 in Experience, with good scores, so that they get included in the Promising filter.
On the medium term, I’d like them to reach an Experience score of 7.5 and for some of them to be among the monthly DarwinIA winners on a continuous basis.
On the long term, I aim to have sufficient investors in my DARWINs that allows me to live off my automated trading strategies.
What is the most important lesson you have learnt in your trading career?
I think the most important lesson is that you have to gauge times of theory and practice very well.
Spending a lot of time watching tutorials can postpone the moment you face the market and you can lose time due to information overload.
But entering the market too early can make you lose time due to a lack of information.
It’s important to be aware of the fact that virtually everything is already invented. That is to say you shouldn’t look at price curves thinking that you’re special and have discovered that at 12 o’clock the price tends to go up and then go down. Instead, you should read forum threads to discover that there are strategies based on price movements at certain hours.
Any books you like to recommend to fellow traders?
As an introduction to the world of automated trading, I recommend “The Black Book of Financial Hacking“.
Thank you very much for the interview, nanotrade!
Any specific questions you would like to ask nanotrade? Leave them as comments and we’ll try to get you the answer!