After presenting the forex investment portfolio last week, I am happy to report the profits rose. After 143 trades have been executed, it is interesting to see that the most risky trader is leading the pack. Should these trade leaders continue or should changes be made?
Lorenzo Farro, the trader which has the highest risk level out of selected trade leaders on Currensee, already made a 14% profit in less than two weeks. The second place is held by Jacek Florysiak, a fundamental trader. All in all, the profits rose from last week’s report. You can see more details in the graph above.
The question is: should more funds be allocated to the best performing trader? The reasoning would be that this successful trader will continue outperforming and therefore investing in him will yield more profits. The same logic can be applied for the least successful trader – deallocating funds from him will also increase profits.
On the other hand, the leading trader takes relatively big risks – 89.6 in the risk index. So, he can quickly lose as he quickly won. In addition, you can look at trade leaders somewhat the same way as looking at momentum in currencies – they can be in an overbought or oversold situation. So, perhaps I should cash out on the successful trader and move the funds elsewhere?
At the moment, I’m keeping the same portfolio, divided by 4 traders, all with a different approach. What do you think? Here is the list of trade leaders, is there anybody that should receive attention and funds?
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I’ll keep you up to date with the performance, changes in the trade leaders and any other relevant piece of information regarding the forex investment portfolio on a weekly basis.
Full disclosure: I’m affiliated with Currensee.