Next in our series of trader interviews is DARWIN $AXF.
On top of being one of the few DARWINS with a score higher than 70, DARWIN $AXF stands out as one “Trending” DARWINS yielding a “Return higher than 50%” since inception and, as you can imagine, one of the DARWINS with the Best Scores on our platform.
Don’t miss our interview with the trader behind DARWIN $AXF!
So, tell us a little about yourself. How did you get started and how long have you been trading for?
It all started when, after having finished my studies and working for a few years, I took a hiatus from work. Upon my brother’s recommendation (now my trading partner – a year after I started he joined me) I decided to study and investigate the world of investments, in particular Forex. It had already interested me beforehand but due to a lack of time I hadn’t got into it.
I am talking about 2008, and back then there was not as much information about this as there is now. As I was starting from scratch, with nobody telling me the steps to follow it was a little tough, until I found the path to follow.
After various courses completed, various books read, videos, webinars, blog, Forex groups etc. I defined my path to follow. I started to trade manually, and after trying various strategies (some with bad results), we found one that worked well for us with good results for months. While we continued to study and learn, around that time people started to talk about EAs, automated trading etc. and it was around this time that the curiosity around this topic, coupled with the lack of time, led us to decide to automate our trading, after various months of studies and tests.
About your trading strategy: what pairs do you usually trade? Do you always trade the same timeframes?
In the DARWIN there are a total of 10 automated strategies that adapt to market changes, trading with 16 pairs and 28 settings, without using Martingale, Hedging nor Grid strategies.
The pairs that we use are the main crosses with the USD, some crosses with the EUR, and XAU.
The timeframes that we use are 15 minutes, 1 hour, and 4 hours.
I have to point out that upon migrating the account there were some changes, new strategies were incorporated and others were modified with the aim of diversifying and reducing Drawdown. This started in June.
As a trader, what would you say is your greatest strength?
I believe that our main strength is having trained as far as possible the psychological side to know how to properly deal with the winnings, the losses, to think positive, to be conscious of what you can and can’t control, and to control emotions such as fear and greed.
And your biggest weakness?
I think that having all of the trading automated, we ought to disconnect more and not spend as much time controlling everything, because it is all automated and there isn’t much to control. However this is something that comes from manual trading.
Our algos tell you are very good at when it comes to manage your Loss Aversion and your Timing (Close Strategy). Any ideas for other traders who need to improve on those attributes?
Be very strict in managing capital and also when it comes to closing trades, both in negative and in positive. If your strategy tells you it needs to close then close! Of course this is much easier with automated trading because you eliminate the psychological part.
What is the most important lesson you have learnt in your trading career?
For us, the most important lesson we have learnt is that you have to always follow strictly the capital management (no matter what capital you have), the rules of your strategy, and you have to be patient and not greedy, because having a winning strategy, eventually you will end up being a winner.
Finally, any comment you’d like to share with the fellow traders who read this?
Always backtest the strategies and do Monte carlo simulations for several years back, because the market is never the same, and see how your strategy behaves. This way the psychological part won’t affect you as much, above all in the bad times, as you will be relaxed knowing that your strategy has passed the backtesting.
In the world of trading and investments you cannot always win. Study the psychological part, I think it is the most important base in the world of investments.