How many robots operate at XIC and why?

How many robots operate at XIC and why?

XIC manager's commitment is to try to ensure that there are always a minimum of 10 systems operating the strategy, shortly you will see why.

Before that I would like to reinforce intrinsic elements of the XIC design, which will help us understand the reasoning behind the number of systems:

From here two ideas that explain the high number of systems

Size Matters

In quantitative trading we are working in our day to day with historical, average results, standard deviations, etc. If in our day to day, for example when we back-test a system, we are very aware of the importance of the sample size for the analysis to have statistical significance, from our point of view leaving portfolio (in this case darwin XIC) in a few systems, no matter how tested and reliable they are, it is incurring a very high risk, while if we increase the number of systems it will help us to comply with the law of large numbers and help the portfolio's profitability averages are achieved. If a specific system fails us if the size of our portfolio is large, in our case a minimum of 10 systems, the effect will be 10% which will be acceptable, very different from if we only had 4 where it would affect us by 25 %.

The more the better

In the case of XIC, better and also easier. All our design effort is focused on having a balanced exposure between the currencies that, for different reasons, we have selected, in order to compensate for deviations in a specific currency we must look for systems in pairs that contain those currencies and evaluate the effect it will have on the currency. Another currency that makes up the pair, all taking into account the number of operations and that to connect or disconnect a system must previously pass all profitability filters, drawdown, etc. so it is almost impossible to achieve such an equilibrium unless the number of pairs and therefore the number of systems is high.

Our objective is not only to maintain the number of active systems but over time to increase it so that XIC is more profitable but above all as safe as possible.