In the previous article, you learned why it is better to create a portfolio of trading systems instead of trading just one system. In the current post, you are going to see how the theory is applied in practice and an example portfolio of trading systems is created.
We are going to illustrate the benefits of compiling a portfolio of trading systems with an example from our trading systems library. We are going to work with the following 10 trading strategies:
- Go through the steps to examine the historical performance of the 10 systems and see if we can create a balanced portfolio from them.
- See a practical example of the effect on the performance metrics by combining uncorrelated trading systems.
- Learn how to optimize the portfolio in order to achieve better overall performance.