Jacob Hooper is a Brisbane-based algorithmic trader who runs WJR on Darwinex Zero, a portfolio of around 22 simple systems across FX and commodities. In this pre-recorded episode of Behind the DARWIN he tells Blayn why he builds 100 systems to find two that hold up, why he favours the daily chart, and how he keeps optimisation honest.
Key takeaways
- Jacob started trading manually in 2017 and moved to algorithmic trading in 2022, building in FXdreema before switching to AI tools.
- Out of every 100 systems he builds, only 2 to 4 now pass his tests, down from 5 to 7 when he built by hand.
- He favours daily and four-hour systems because there is less noise, fewer wicks and lower costs. He has never found anything in scalping.
- He optimises only stop loss, profit target, break-even and holding times, and only keeps a setting if the values around it also work.
- When a system hits its maximum drawdown he switches it off, waits around six months and retests it before deciding.
Watch the full interview:
Who is the trader behind WJR?
Jacob placed his first manual trade in April 2017. Like many traders, he moved between communities chasing whoever was posting the best numbers. He calls it shiny ball syndrome. A mentor introduced him to algorithmic trading, and later to Darwinex.
His first six months as an algo trader in 2022 were his worst, with big monthly swings while he learned how systems and risk behave. What convinced him to stay was the maths of running many systems at once.
"You can build a system, it can work for six years in a row and have stellar results, incredible results and on the seventh year it just doesn't work." 2:51
With 10 or 20 systems, one bad year from a single strategy matters far less.
How many systems do you need to build to find one that works?
For Jacob, around 100. Block building in FXdreema, he could build roughly one system a day and found that 5 to 7 in every 100 were valid. AI lets him build far more, but he has tightened his gates.
"So got to build 100 systems to try and find two that are somewhat valid." 13:14
Some runs of 150 produce nothing. His warning is that asking an AI for "a profitable strategy" mostly produces bad ones. You still need to know what makes a system work, from break-even levels to costs.
He keeps his rules simple. More complex systems took weeks to build and performed no better than ten simple ones built in the same time.
Why does he favour the daily timeframe?
His systems run from the 15-minute chart to the daily, but the higher timeframes hold up best for him.
"There's so much less noise on the daily that I think that's why they perform so much better." 19:42
Price has more room to reach a target without wicking a trade in and out. Commissions take a smaller share of each trade. A swing system returning a modest amount a year is valuable when you run several. His advice is to find five daily systems and five four-hour systems first, then work down if you want to.
How does he avoid over-optimising?
He gets a feel for it after being burned enough times. If a system needs a lot of fiddling, it is usually a bad system. Once he has an edge, he checks the values around the one he chose.
"If it works from 40 up to 60 in a band, then you should have some kind of profitability there." 39:34
He only optimises stop loss size, profit target and break-even management. Over the past six months he has added minimum and maximum holding times, which he says has changed many of his systems. For breakout and momentum trades, catching the first move and getting out often beats waiting for a long run.
When should you switch off a trading system?
When it breaches its maximum drawdown. Jacob switches the system off, waits around six months, then retests to see whether the market simply produced a new low or the edge has gone.
"So, I think turning it off and respecting your rules is the biggest thing." 25:36
Running many systems makes the decision easier, because one weak system is only dragging on the others. His tolerance for losing runs comes from manual trading, where he once took 38 losses in a row.
Why did he put his track record on Darwinex Zero?
He wanted a record anyone could check. Sharing a private account statement proves little in an industry full of bold claims.
"Put it on a public forum that is undeniable essentially." 29:45
He runs WJR at lower risk than his personal accounts, having reduced it after his first six months on the platform. His goal now is to keep building systems, keep diversifying and let the track record lengthen.
What is his advice for new traders?
Make sure you love it. Most people cannot make a positive return over six to twelve months, and it takes years.
"It's not a get-rich quick scheme by any means." 41:45
He also warns against learning from too many sources at once. Every trader's method is different, and listening to all of them leads to analysis paralysis. Pick an approach, test whether it works for you, and adjust from there.
Watch the full interview
The full episode includes the WJR record on screen and Jacob's answers to questions left by previous guests. Watch Behind the DARWIN with Jacob Hooper on YouTube and join the Darwinex Zero Discord to keep the conversation going.
Building your own track record? Start on Darwinex Zero.
FAQ
How many trading strategies do you need to build to find a good one?
It depends on how strict your tests are. Jacob Hooper finds 2 to 4 valid systems in every 100 he builds, and some batches of 150 produce none. Treat strategy building as a numbers game and expect most ideas to fail.
Are daily trading systems better than lower timeframes?
For many systematic traders they are more reliable. Daily charts carry less noise, trades are less likely to be wicked out, and commissions take a smaller share of each trade. The trade-off is fewer signals, so you need several systems.
How do you know if a strategy is over-optimised?
Check the settings around the one you chose. If a 50-period average works but 45 and 55 fail, the result is probably noise. A setting that sits inside a wide profitable band is far more likely to hold up live.
Is Darwinex Zero a prop firm?
No. Darwinex Zero lets traders build a verified track record that can attract investor capital through Darwinex, an FCA-regulated asset manager. There is no challenge to pass.
Thanks for reading,
Darwinex Zero.
*Darwinex Zero and the domain www.darwinexzero.com are trade names used by Tradeslide Technologies, a company registered in the United Kingdom under number 14398381.
The contents of this blog post and video are for educational purposes only and should not be construed as financial and/or investment advice