Sam Portfolio 2 Discussion

i see you r good trader, what type of strategy do u use?

Hi, 

Thanks for your good word, and I will try to explain since I have some time this weekend.

The strategy is a directional, macro-aligned trend-following approach with dynamic position sizing and portfolio-level risk controls. Trade direction is determined first at the macroeconomic level through ongoing assessment of monetary policy expectations, interest-rate dynamics, inflation trends, real yields, and broader risk sentiment. This macro framework establishes the directional bias and defines the directional bias and defines the prevailing risk environment in which the strategy operates.

Once a macro bias is formed, market microstructure and price behaviour are evaluated to confirm alignment with the broader thesis. This includes analysis of support and resistance zones, sentiment conditions, and the way price interacts with key levels under prevailing liquidity and volatility conditions. Only when price behaviour is consistent with the macro narrative does the strategy proceed to technical confirmation.

Technical alignment is confirmed using higher-timeframe structure, primarily the weekly, daily and 4hours chart. These timeframes are used to identify and validate the dominant trend and overall market structure. Trades are only considered when these higher-timeframe signals are aligned with each other and with the macroeconomic bias. Lower timeframe decision-making but strictly for execution purposes. 

Execution is carried out on the five-minute timeframe with the objective of achieving favourable entry prices within the established trend. Entries are typically taken during pullbacks, consolidations, or short-term dislocations that occur within the broader directional move. 

Risk management is applied primarily at the portfolio level rather than on a trade-by-trade basis. Each portfolio operates with a predefined maximum drawdown threshold expressed as a percentage of equity. There thresholds vary depending on the specific mandate and risk appetite, typically starting approximately from 0.2% to as much as I want of the equity. Again, this depends on the risk appetite on the particular account. If the drawdown limit is reached, all open positions are closed immediately and trading activity is paused pending reassessment. I uploaded another account and the Max DD on it is less than 3% at the moment. This approach ensures that adverse conditions do not compound unchecked.

The recent performance actually benefited from a sustained uptrend in gold, which provided a favourable environment for macro-aligned trend-following strategy. Performance is expected to vary across market regimes, with the strategy designed to perform best when macro conditions, market structure, and price action are aligned. The overall process is informed by more than a decade of active market experience and emphasizes disciplined execution, contextual decision-making, and controlled risk exposure over short-term performance optimization.

I hope this helps. 

Cheers.