SYSTEMS COMBINATIONS
One of the great advantages of the use of systems is diversification, on being totally automatic process we can start up systems in a market or even different ones, This way we will be able to have a systems portfolio, depending on the capital assign for this type of investment .
To form a systems portfolio is one of the most important aspects in destining a percentage of our capital to this type of investment. From Autrading we advised to all our users the composition of a systems portfolio instead of chose only a system, so we will obtain:
The use of different strategies that allow us to be with different positions in the same market, thus we will be able to have different entry prices , will be able to have days with long positions and short at the same time , to manage the exits of the positions of a different way (fixed stops losses , trail stops, benefits etc...). Diversification in different markets, just in case a fall in volatility (lack of movement) in some of them take place.
To diminish the momentary losses (drawdown), offseting the losses/gains of systems with the others ones. We will generally need a smaller capital for three combined systems that the sum of the necessary capital for each one of them if we activated them separately.
It help us to obtain a good result, if some of the systems lose its effectiveness and it took us to losses, on not being betting on an only system. |