Adventures in Algorithms

Discussion in 'Journals' started by Raphael, Sep 23, 2015.

  1. Raphael

    Raphael

    2 months paternity leave plus lots of international travel. The positions didn't change significantly from what I originally listed, although they did double when I doubled my capital base. So everything has been long treasuries and short corn the whole way through with some minor AUD trades.

    I just deposited another $20k bringing the total deposits to $60k.
     
    Last edited: Feb 4, 2016
    #41     Feb 4, 2016
  2. My gut feeling is diversification is better. However this topic keeps coming up so it will be the subject of a research project and a blog post, sometime in the next couple of weeks hopefully.

    GAT
     
    #42     Feb 4, 2016
  3. Oh and congratulations on the new arrival. Bet you're glad to be systematic - I'd hate to be a discretionary trader with a young baby.

    (My youngest daughter was born in November .... 2008. Stressful times all round!)

    GAT
     
    #43     Feb 4, 2016
  4. Raphael

    Raphael

    Yes. There's definitely advantages to being systematic, particularly while traveling. I had a simple cronjob running on my desktop and sending me a daily email with trades that I'd execute manually on my phone while overseas. I was amazed how well it worked.
     
    #44     Feb 4, 2016
  5. Raphael

    Raphael

    Account is up to $43.75k, so $3.75k profit.

    Current positions:
    Code:
    GE DEC17  4
    ZC MAR16 -4
    ZT MAR16  2
    
    Waiting on additional funds to clear. The total deposits will be $80k shortly, at which point I'll extend some of these positions. I should probably redesign my portfolio at some point soon to achieve more diversification now that I have a larger capital base. The original portfolio was designed for an account of $20k so I can likely expand into a broader range of asset classes now. I'm currently thinking about swapping out the Nikkei for the euro stoxx 50 and adding in some metals.
     
    #45     Feb 8, 2016
  6. Raphael

    Raphael

    What a great day. Up to $44.77k.
     
    #46     Feb 8, 2016
    dartmus likes this.
  7. Raphael

    Raphael

    New high water mark. $65.27k, which consists of $60k deposits and $5.27k profit.

    Current positions:
    Code:
    GE DEC17  5
    ZC MAR16 -6
    ZT MAR16  2
    
     
    #47     Feb 10, 2016
    FCXoptions likes this.
  8. Raphael

    Raphael

    Another great day. $66.23k.
     
    #48     Feb 10, 2016
  9. I've finally got round to answering this question.

    http://qoppac.blogspot.co.uk/2016/03/diversification-and-small-account-size.html

    It looks like the former (as I thought). I'd say with five positions you're probably about right for the capital you have. With $80K you can probably add a couple more instruments.

    GAT
     
    #49     Mar 9, 2016
  10. Raphael

    Raphael

    Great article. Thank you! One thing worth noting is that KR3 and V2X are not available to US residents sadly.

    https://www.interactivebrokers.com/en/?f=/en/trading/eligibleProducts.php

    With those removed the top 6 become

    US2, EDOLLAR, MXP, CORN, EUROSTX, VIX
     
    #50     Mar 11, 2016