The main idea of the portfolio is that it´s based on uncorrelated FX pairs. Uncorrelated means that the pairs don´t have to necessarily move together, nor they necessarily move in opposite directions. Hence, they are uncorrelated. Implementation the basics of this idea was inspired by a mutual fund, The Permanent Portfolio Fund that has out performed the overall markets over the years. We have generated over 10 000 strategies in quantitative software and selected only 16 strategies with specific settings, which had passed all many test and has been profitable in the back tests with 99.9% tick data since 2004 till today January 2019. Tests showed us the stability and reactions of the portfolio to the changes in the markets. The results are very acceptable and the portfolio still generates profits in the most of market conditions especially in strong volatility.
The portfolio basically works with two triangles of GBP, EUR, USD and JPY currencies, which guarantee that we can´t never lost all equity and the risk of all strategies together is not multiplied, but added together. We discribed it all in details on this page below.
Monte Carlo analysis
This tests changes the past trades to the random order and as well change randomly the number of the trades. We have a chance to see how would the strategy behave in the different market conditions.Then we can choose the most optimal settings which will be flexible for all market changes. We are not looking for the most profitable settings, but for the one which is the most flexible in all market conditions.
Volatility change tests
The volatility tests randomly changed the candles sizes for a 20% up or down. This test simulated changes on the market cycles and gave us more certainty about the stability of the tested strategies for future. In these tests we have been again looking for the strategy settings that produce stable results in unexpected volatility changes.
3D Stability vision
Each strategy in the portfolio has a flexible system of placing Stop and Target limits as per volatility of the market measured by the average true range (ATR). Every strategy has a positive risk ratio minimum 1:3 it means TP distance is always bigger than our SL distance. We are risking less for bigger profits, Always!!
THE PORTFOLIO SELECTION
When passed all previous test we put together only 16 systems which generated most stable results in past 15 years. The conclusion is clear. This is a professional, fully automated, robust trading system, which has ability to work consistently in all market conditions for a long time in future.
We can basically set it and forget all stress and worries which comes with trading. We don´t have to be worried anymore on the market crashes, long term trends or sharp moves. This system contains strategies that can benefit on these occasions. The Portfolio X doesn´t use martingale, averaging or any other dangerous trading techniques.
RESULTS OF COMPLETE PORTFOLIO
15 years tested with 99,9% tick data. . The portfolio has grown the account from $1000 to the $77226 with maximum 18% drawdown .
PORTFOLIO X – 16 Strategies
- UNCORRELATED SYSTEMS
- LONG TERM AND SHORT TERM STRATEGIES
- CUSTOM INDICATORS
- PROVEN RESULTS
- ADVANCED RISK MANAGEMENT
- NO MARTINGALE, HEDGING, NO ARBITRAGE