This strategy has been running since July 2024 and is close to hitting a milestone of 2,000 trades.


This strategy involves an element of dollar cost averaging (DCA) and as such has had large drawdowns in the past of up to 24%. My plan to reduce the drawdowns is to increase the diversification of the portfolio by adding additional forex pairs to the strategy and reducing the position size of all trades. If done correctly this should be able to maintain the monthly gains but reduce the risk and drawdown. I'll be using backtests to identify uncorrelated forex pairs to add to the portfolio that still perform well with the strategy.


I have also recently added additional automation to the strategy and plan on reducing the "human" element. Though I feel like some "human" element may always be required.


Please let me know what your thoughts are of this strategy and any ideas/approaches you've used to reduce drawdown.