About

This blog is created as an experiment. This is a micro hedge fund experiment.

Is it possible to have a personal micro hedge fund to generate profits with money far bellow the imaginable?

My answer is probably Yes. That is why I have created this experiment. So what is the situation?

We have as low as 150 USD of risk capital that we want to invest. You are laughing OK, I understand. And we want to invest them in the market. The idea is that we are going to make a time frame diversification (that can be an eye opener for the day traders)

We are going to apply a high risk trend following strategy with our capital.The purpose will not be to accumulate profits and more profits. The purpose will be to take every month half of the profits and bye some beer.

I will give some technical details.

We are going to use mainly daily and 4 hours time frames. We will use a moderate leverage.
We are going to take positions with 0.01 lots or 1000 $.

The entry into position will be generated on a 30 minutes time frame.

The stop loss will be dynamic and will evaluate with the trend to lock in the profits. The stop loss levels will be deep in order to avoid the high frequency algorithms effects as much as possible.

I will open positions only on EUR/USD, because it is a well trending market we want to exploit. The idea is fairly simple this market has good trending characteristics we want to exploit. I have been forward testing this strategy for six months, before starting the experiment.