[DARWIN] SRI by sunrise

[CavaliereVerde]

Darwin ->https://www.darwinex.com/darwin/SRI
Old topic ->https://community.darwinex.com/t/sri-investors-discussion/7834

The trader was reading old forum recently but never answered to my calls.
->https://community.darwinex.com/u/sunrise/summary

This darwin is very promising, performance is impressive.
It works with very high risk profile but this is not a problem for who knows how this world works.
I would really appreciate opinions from fellow respected colleagues here!

 

[CavaliereVerde]

I just noticed that the trader set a max AUM to 2 millions.
This is a very responsable behavior.
Theoretical capacity is much higher but it is better to verify real world capacity and divergance protecting the older investors who trusted you.

 

[MisterMoney]

Hi CavaliereVerde

You have an interesting comparison of this Darwin SRI with 9 other darwins that I think will be of interest to you: https://t.me/darwinizate/66840

 

[CavaliereVerde]

Sorry but I don't have Telegram, I think darwinizate is good stuff but I am not used to subscribe closed groups. I prefer public forums.

 

[MisterMoney]

Hi. I attached the file that linked to telegram.

 

[JustNextLevel]

Hi Gents

I have added this Darwin to my watchlist to compare my Darwins to, and because it is one of the 10 largest Darwins by Investor Capital (6th in fact)

It does not score well in any of my selection categories. It is actually the worst in most of them and another red flag that has come up is their trading regularity. They did 790 trades over the past 2 years and 381 trades over the last year, but get this, they have only done 12 trades over the past 6 months??

Their trades also have no edge over the past 6 month period in comparison to their previous 18 month record.

The last 12 trades over the past 6 months have been large losses on their losing trades. The last 2 trades over the past month were both losing trades, giving them 0 edge over the last month and a seriously losing strategy over the past 6 months.

Even with the very few trades, they are doing, they are increasing risk dramatically and they are now near all-time high VaR levels. See below their 1-year graph.

This is one of the 4 that are coming off my list, and the easiest one to remove of them all.

To top it all, this trader is not responding to questions on the previous forum.

I hope Investors are aware of the signs, because they have more than $1 000 000 assets under management.

If it was me.......I would be out in a flash!

My 2 cents

 

[CavaliereVerde]

The last 2 trades over the past month were both losing trades, giving them 0 edge over the last month and a seriously losing strategy over the past 6 months.

What's the point of analyzing 2 trades or one month?
This is not zero edge but zero significance of the analyzed sample.

Trader is working at high var this is nothing new, is he goning all in?
Maybe but we cannot say it from your analysis.

The worrying sign is the skyrocketing var, I agree on that.
It is the reason I ma not investing darwins with a low RS score.
RS is the best algo Darwinex has ever designed.

 

[IlIlIlIlI]

What's the point of analyzing 2 trades or one month?
This is not zero edge but zero significance of the analyzed sample.

Trader is working at high var this is nothing new, is he goning all in?
Maybe but we cannot say it from your analysis.

The worrying sign is the skyrocketing var, I agree on that.
It is the reason I ma not investing darwins with a low RS score.
RS is the best algo Darwinex has ever designed.

Never invest in a Darwin hiding the assets.
To hide the assets has nothing to do with IP, but avoiding that investors can build an own opinion about the risk.
Assets show the risk class, and I'm sure this one is trading gold and/or other metals which IMO is the highest risk class you can trade at Darwinex. Trading that long term with only a few trades doesn't make anything better.
Do you remember FSK? Very similar, they were also trading hidden metals with high VaR until they crashed with XPT.

 

[JustNextLevel]

What's the point of analyzing 2 trades or one month?
This is not zero edge but zero significance of the analyzed sample.

Not at all.......having 2 trades in one month and 12 trades in 6 months has a big significance, especially when they normally do 380 trades in 6 months and 60-70 trades a month.

I am not analyzing the 2 trades only... it is in the fact that they now most probably changed their strategy, and ditched the old one....or sold it .....or who knows what they have done and why they are trading like this. 18 months of 70 trades per month and then 6 months of 2 trades per month??.....don't make sense

Trader is working at high var this is nothing new, is he goning all in?
Maybe but we cannot say it from your analysis.

I do not mind the high VaR either, especially when it correlates with returns, but in this case, it does not.
I did not analyze the VaR, but I have come to realize that recent higher VaR's (relative to the past 6 months) have an impact on the future returns in the coming months. If it was used because of a new strategy with a higher VaR, then it will not make a difference in the coming months.....but we don't know.

The worrying sign is the skyrocketing var, I agree on that.
It is the reason I ma not investing darwins with a low RS score.
RS is the best algo Darwinex has ever designed.

Agreed, although I am a little more lenient on Rs, because some strategies do have certain periods of more trades and higher exposure due to certain factors.

 

[CavaliereVerde]

Now I agree, one losing month or 2-10 losing trades are not significant.

What is significant and needs investigation is a big change in trading frequency or trade duration.

Here we have unstable risk and unstable style.

 

[CavaliereVerde]

This is the description by sunrise:
Dear all,

The Darwin SRI is offering an exposure to liquid currency market strategies with a specific focus on controlled drawdown and a weighted exposure in a multi-strategy framework.

What an investor should expect when subscribing to the Darwin SRI:

• Target Investment Return: +30% per annum.
• Liquid strategies generated by two investment styles.
• Weighted net exposure: systematic risk management.
• Capital protection against extreme market conditions.
• Use of proprietary methodologies to increase returns.

Kind regards,
SRI

Nice... ok and ???
Pretty undefined.

 

[MisterMoney]

I understand that at this point:

• Liquid strategies generated by two investment styles.

it is clear that sri has 2 trading styles.

 

[IlIlIlIlI]

I understand that at this point:

it is clear that sri has 2 trading styles.

You mean ... buy and sell something?

 

[CavaliereVerde]

His description sounds a bit like "I do what I want but don't worry everything is under control".
This is a bit too convevient, you don't declare your style so I can't verify your discipline.

If we want to go abit deeper we can notice that the first part of the trackrecord is high rotation and low capacity.

Capacity going from 2 to 3 can be an improvement but going from 2 to 10 means that what he is doing now has nothing to do with what he was doing before.

 

[Gargamel]

I don't know if this info will be useful for your analysis but I find it interesting:
classical scalper TMN (provider 'hiroo59') is trading exactly like 'sunrise',provider of SRI,ERO and USX since beginning of Sept 2020.
Question:is this the same trader with two profiles or did somebody find a way to copy provider of SRI?

 

[IlIlIlIlI]

I don't know if this info will be useful for your analysis but I find it interesting:
classical scalper TMN (provider 'hiroo59') is trading exactly like 'sunrise',provider of SRI,ERO and USX since beginning of Sept 2020.
Question:is this the same trader with two profiles or did somebody find a way to copy provider of SRI?

No.
But now we can guess the hidden assets SRI is trading as TMN does not hide the assets
And I was wrong with my assumption that this Darwin trades metals.

Hint: reduce the timeframe to 1 month and go to the "Asset & Timeframes" tab. Then you see that SRI has a holding period of nearly 20 days and made only 2 trades while TMN did not trade in the last month (but has open positions in the assets shown as the return chart shows moves).
Looks like SRI reentered the closed trades very soon and the correlation result is the same as if the position was kept open.
For the correlation algo they must be identical on the return curve raised by their (non) trading behaviour.

 

[LongVision]

Capacity going from 2 to 3 can be an improvement but going from 2 to 10 means that what he is doing now has nothing to do with what he was doing before.

I think SRI trader was previously trading Stop & Reverse type strategy as the main strategy on the intraday timeframe for US index(S&P or NDX), now the same strategy most likely on the daily timeframe.

 

[CavaliereVerde]

SRI is hiding assets but has a correlation of 1.00 with darwin DYW that trades only EURUSD .

 

[CavaliereVerde]

-350k from a single investor.
We have some big boy around.

 

[MisterMoney]

He should have invested in January 2021. It comes out without profit... :\