Hey mate. Yea, I can't talk too much about the specifics given the code was bought. But i don't have a particular strategy for the drawdowns intra-month. If I had a market crash like March/April last year, it would be a discretionary intervention to withdraw the money to at least avoid the 30-40% hit to the market. But I removed index filter that comes standard with the code, and as you mentioned the ASX300 is more volatile. Radge's code is not meant to be run on the ASX300, which is an important distinction I like to make to others. I am young enough, and acquainted with my own risk tolerance, to know that this is something I can handle. My CAGR is also higher because of this. One downside I found with the defaults of the code is that you can be out of the market for several months at a time. This is a protective measure, obviously, but it also meant the system missed out on the rebound. I am only doing month-end explores but I am also avoiding checking in on it too much during the month (to avoid that burning want to interfere with the code). Riskier? Yes, definitely. But for the moment I can deal. I have had times that I've bought and all is well, and all of those gains (plus the month before) lost in the weekly chop. At least with a superaccount I have my employers contributions that soften the blow (and allow for greater compounding, though this is taken into account with my calcuations of returns).
Those traders you spoke to who trade monthly probably have a good idea of whats going on. They probably have smaller drawdowns than me, though perhaps there CAGR isn't as high. The ASX50 also has high liquidity and ability to absorb large positions. When my system gains more capital, I intend on expanding from 10 positions to 20. I found the DD is reduce with more positions, and the returns are smoothed out. I believe this is because its unlikely all 20 positions are going to have a bad week, whereas just having 3-5 positions with a bad week in a portfolio of 10, can greatly impact the performance. This system is meant to be relatively hands-off, simple, and long-term focused. I am open to reducing the exposure to the smaller indexes (ASX50, ASX100, or ASX200), but that will come at a time when I want to reduce my risk. I have also thought that by trading a portfolio with momentum, in the ASX50 and 10-20 positions, is more like a high-beta type strategy. Certainly useful for many.