In which assets does SMI operate?

In which assets does SMI operate?

SMI operates in the Forex (Foreign Exchange) market. This is the largest financial market in the world, reaching a daily transaction volume of around five billion US dollars (USD). Its volume is greater than all the other stock markets on the planet combined.

Within the Forex market, SMI works only on the 8 main currencies:

SMI tries that the exposure to each of the different currencies is as balanced as possible , so the criteria for creating systems and their implementation are optimized according to the level of exposure to each currency at all times.

Deviations in the exposure to different currencies are checked weekly as said exposure varies over time due to variations in exchange rates. If deviations in excess appear, the number of systems operating in each pair is varied (switched on or off) to balance the exposure as best as possible. Following this methodology, we rebalance the systems that operate in each pair on a weekly basis.

As we can check in in the section How does SMI manage risk? all systems have a fixed level of risk, measured in € (taking into account variations in the exchange rate and as a percentage of real equity at all times). The necessary modifications are made weekly.

Underlying idea is to try not to have a large exposure to a specific currency, thus minimizing possibility that a black swan in a specific currency could jeopardize the joint profitability of the entire Darwin.

The 28 pairs on which we have automatic systems operating are:

The systems portfolio exposure control system to assets, details in which pairs we must implement systems so that the exposure to different currencies is as balanced as possible.

In April 2022, gold and the Nasdaq index are incorporated as tradable assets of the portfolio with breakout strategies (symbols XAUUSD and NDXm on Darwinex).