8) Why High VaR Trading Strategies Don't Survive Long-Term

8) Why High VaR Trading Strategies Don't Survive Long-Term

Channel:
United Kingdom Darwinex
Subscribers:
52,600
Published on ● Video Link: https://www.youtube.com/watch?v=hKsE652NDwA


Duration: 21:48
1,379 views
42

This tutorial explains why and how using excess leverage (trading with a high Value-at-Risk) drastically reduces a trader / trading strategy's odds of survival in the markets.

We describe with the help of trading strategy examples, how even the most robust of alphas, even strategies with high win-rates can fast turn from winning to losing strategies when excess leverage is used.

We shed light on what levels of Value-at-Risk are sensible, and beyond what VaR it becomes progressively improbable to recover from loss-making periods.

We also discuss how attracting investor capital on the DARWIN Exchange (where investors pay 20% performance fees on HWM profits) whilst maintaining survivable levels of risk, is the most sensible option for serious traders looking to make more meaningful returns from their trading.

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Topics: #darwinex #leverage #var #risk #montecarlo #trading #dleverage



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Tags:
algorithmic trading
algorithmic traders
algo trading
algo traders
Forex Trading
FX trading
Investing
DARWINs
Darwinex
Investment
Risk
Hedge fund
var
value-at-risk
value at risk
parametric var
darwinex var
volatility
returns
leverage
dleverage
d-leverage
d leverage