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[HOWTOINVEST] Investing Darwins: pitfalls, guidelines and expectations

With CFD they mean everything and the percentage refers to every customer.
Darwins are only a way to group replicated trades.
Ther are customers and there is the market, I think the only excluded money is providers earnings.
They combine your net result as trader and investor, one year lookback and they see if you have a positive or negative result.
 
Pure Pip Producer said:
The funniest is that my profil PurePipProducer is probably counted as a looser! Mouahahahahhhaaha :D

More seriously, I'm always wondering if it ONLY concerns the CFD and not the others (forex, indexes traders..) ?

Because, the sentence is clear! It's says "CFD".
Click to expand...
Like Cavalier said, it includes FX as well
 
Ok,I have unfinished work in this thread.I will make it shorter than I planned because there will not be much peace in this forum for some intelligent,calm discussions for long,before holder of Holy Grail returns back :eek:.By the way,when I left we were at 150th post and now I see there are already over 600 of them,plus probably few hundred scattered in other threads.All that for 3 month trackrecord...
 
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Next big fail of Darwinex picking good darwins for future investments was D-score.I will not write extensively about what is D-score and what it serves.Here is a screenshot from Darwinex and it is also to document that for history,so that they or somebody else defending them,doesn't say later that it was only an experiment,beta or some sort of suggestion and not a crucial part of Darwinex platform which basically determined the fate of traders regarding Darwinia and AuM.And of course mislead amateur investors into wrong darwins for years,hence very low levels of collective AuM these days.

D-score1.png


D-score.png
 
They also had a backtest and a graph somewhere,where they showed that darwins with D-score 60 and above were the ones to invest.I didn't find it,but maybe someone that remembers that and can find it,will add it in this thread.Needless to say.it was a backtest! and they imposed that on unsuspecting investors and traders.I remember in that article they mentioned that they noticed marked deterioration of results with darwins scoring very high-around 80 in their backtest and that was an obvious red flag but they were reckless and continued...
In addition of being Darwinex stamp of approval,traders were incentivized to fight for as high d-score as possible because it was crucial criteria for Darwinia rankings (if trader had beautiful month didn't mean anything if he didn't have high enough d-score) and AuM.
D-score was also needed if trader wanted to get commissions rebates.Traders with 60 or more got 40% rebates.Of course everybody was concentrated on that unfortunate D-score instead on their best-possible trading and edge.
D-score value as an indicator of future good trading proved to be zero.It produced many misunderstandings,losses,unnecessary changes in trading strategies,misallocation of majority of Darwinia AuM in wrong hands,mislead investors,discouraged traders that couldn't adapt their trading to Investable attributes and D-score and left although there was nothing wrong with their trading...
Since there was an official forum back then,users started complaining and pointed on obvious flaws :
I will post only few threads from old forum with numerous replies,but complaints were all over the forum.

Ranking complaint.png


Darvinia.png


D-score distorted fair competition among traders so much that I used every end of month Darwinia winners as great entertaining event.Not to make fun of really bad traders miraculously winning in Darwinia but to wonder about Darwinex stubborn stupidity.
Needless to say,all those bad calls that I posted earlier in this thread also had very high D-scores...
Also all those beautiful Migrated track-records that harmed so many investors had high D-score from day ONE!
 
And than one sunny day,after years of nonsense:

investible attributes.png


They didn't bother to say to 'guinea pigs 'Thank you for participating'.Followed by:'And now for something completely different....'Monty Python's Flying CircusTM.
And by the way new D-score ,only few months in use,is also a backtest and an experiment;).
 
No kind of DScore will ever be predictive.
Investable attibutes and everything is calculated on a past trackrecord and unfortunatelly the past is not so predictive.
Even if not predictive old DScore was an innovative way to rank trackrecords and traders.
Now they calculate it on return and drawdown.... wow very original...
The usual way every social trading site rank traders by return and luck.
 
I will stop for today and remind people for the third time that this thread is not to make fun of bad or unfortunate traders.It is to show way to investors how to avoid stepping in the same shit as many had before and,I hope,to show traders how to behave and think if they want to make good use of this investment platform in spite of Darwinex bosses sabotaging their own company with their greed and recklessness.
 
I think you overestimate the importance of the D-Score. Maybe I have a too cinical approach in my live, but for me D-Score has always been a Marketing tool: If I want to give something fancy to the naive people I will copy something that I know it works, I'll present it in an appealing way and post pseudo-scientific articles with supposed statistical arguments and lots of wisdom of experienced traders. Pure bullshit.

I had this intuition before oppening my account in Darwinex.

Having said that Darwinex is also Ok for me, I don't complain because they try to sell me some bullshit. Just ignore it. To me has always been more important the regulation of the broker (FCA), its fees not too highs, and the possibility to receive money from investors through their social trading - BTW I don't see too much difference between Darwinex and eToro, I didn't choose eToro because they have kind of bad reputation, otherwise now I'd be trading to them; Their social trading is as legal as the Darwinex's, that's for sure, I asked to a legal advisor, I say that because I heard on some of their Youtube videos that they were so differents and uniques. This bullshit is more annoying because that's plain false.

To evaluate a strategy you don't need the D-Score, the wheel is invented long time ago. You have parameters as Profit Factor (my favorite), Sharpe Ratio, Calmar, Drawdawn, etc and long etc. I don't need the D-Score. Anyway, if someone wants to use it; be my guest! It doesn't hurt either. And I don't care if they change the way to calculate it and its algorithms. I just ignore it. My only goal is to make my Darwins profitables. D-Score doesn't has any role on my equation.

One thing that has always surprised me is. Why they don't offer the possibility to order the Darwins by Profit Factor? Why only D-Score? Probably would be evident that D-Score doesn't add any value to the existing metrics.
 
FXforfun said:
One thing that has always surprised me is. Why they don't offer the possibility to order the Darwins by Profit Factor? Why only D-Score? Probably would be evident that D-Score doesn't add any value to the existing metrics.
Click to expand...
And Proifit Factor tells you somenthing more than Return? :ROFLMAO: :ROFLMAO: :ROFLMAO:
All those rates are just cool recalculations based on Return!
And now also dscore is some kind of profit factor normalized to 1-100
While before it was depending on stuff like RS or LA that are uncorrelated to return.

Your is the point of view of the trader, a trader does not need DScore.
DScore should be a tool for investors to find the best darwins.
Investors are trying to distinguish good traders from lucky monkeys.
 
CavaliereVerde said:
And Proifit Factor tells you somenthing more than Return? :ROFLMAO: :ROFLMAO: :ROFLMAO:
All those rates are just cool recalculations based on Return!
And now also dscore is some kind of profit factor normalized to 1-100
While before it was depending on stuff like RS or LA that are uncorrelated to return.

Your is the point of view of the trader, a trader does not need DScore.
DScore should be a tool for investors to find the best darwins.
Investors are trying to distinguish good traders from lucky monkeys.
Click to expand...
Of course you're right. Profit Factor can't be the ONLY metric. But I'll tell you a secret, even admiting I'm probably death wrong, the only that really cares to me is Profit Factor, Number of trades, Drawdawn and time on the market.

We can discuss if Profit Factor is the best metric or we need a coctail of other dozens of metrics. My point is that D-Score is just one more in the list. And would be my last one to choose because their inventors are nobody in the industry.

Just compare with the infame Sharpe ratio. Mr. Sharpe is a Nobel price. Ok, that deserves credibility to me.
 
CavaliereVerde said:
Your is the point of view of the trader, a trader does not need DScore.
DScore should be a tool for investors to find the best darwins.
Investors are trying to distinguish good traders from lucky monkeys.
Click to expand...

Oh. I forgot, sorry. I disagree with that sentence. It's not a matter of point of view, you can mesure how good or bad is a strategy by one or two metrics. And you can measure if you have something 'antifragile' as Taleb would say if endures on the time. This is the Lynda test. Taleb dixit ;)
 
@FXforfun I am not writing this thread for personal reasons,but for good of the platform as a whole.It is undeniable fact that because of all the problems I mentioned so far,this investment platform is half-dead in terms of AuM. Darwinex with their stupidity caused that unintentionally.Channelling investors into wrong darwins or at the wrong time.And interfering into trader's work not only with Risk Manager but also with the rest of the nonsense they dreamed-up.

When I read your posts I got an impression that you consider them evil and not stupid & reckless.They are not evil.If they were,I would be writing to regulatory body and not in the forum.
CavaliereVerde can confirm to you, as a real veteran,that they have put on the line their own money and lost in all those failures mentioned before.They spent a lot of IT resources for nothing. They also didn't engage in normal marketing like other brokers because they really believed in their success and word of mouth about them going around by content customers(traders and investors).

Couple with that the arrogance of the boss and you have the recipe for failure.They had a lot of experienced and knowledgeable users posting in the old forum,complaining and proposing new ways.Response from boss:first ignoring, then demoting and scolding the most active member of the forum and unpaid moderator and installing thought police in various forms in the forum.Half year later he closed the forum outright.Sheer arrogance and stupidity.He didn't think about real possibility of many disillusioned members of the forum could take a revenge and scatter around various forums and tell about losses,thought police,divergence problems with darwins,arrogant attitude of company,lunacy of Darwinia contest,Migration scams and track-record farming...Google search engine would put an end to his hopes of getting new customers and also Institutionals,that he is dreaming about,are perfectly able to use Google while doing due diligence about their future business partners...
There is a saying: 'Nothing is more dangerous than confident(arrogant) fool'.
Most of bad things in this world can be explained by stupidity.

The only solution is for them to get out of our way and become neutral Exchange,without picking winners and channelling investors into wrong directions.They should concentrate on Risk Manager and accurate data/diagnostics ,that is all.Time and good quality forum ,where people can freely exchange experiences and ideas,would do the rest.
But they squandered a good start and a lot of goodwill of users.
 
Hey @Gargamel. Thanks for taking your time to answer me.
Probably I didn't explain correct on my previous posts. I don't think they are evil, not at all. In fact, I would still recommend this broker, but I would recommend by what they really are: Just a broker with social trading. Not by their marketing messages, though I consider that is not dishonest to provide some fancy marketing messages.

I was just trying to say that they are trying to sell something that has not value at all; D-Score, Atributes and all that stuff is pure bullshit to me.
Full respect if you or whoever are using these tools. In my opinion that's the wrong way to go because there are other metrics much more reliables.

Also, the Darwinex metrics and tools, are proprietary tools. They can do whatever they want with them. It's our choice to use them or not. Personally I don't give a fuck with D-Score. Ups!

And I would like to point out that if an investor is stupid enough to invest in a Darwin for a bad piece of advice coming from Darwinex or from Google or from a storyteller. Deserves to loose his money. Sorry to say that but here everyone, all of us must do our job and take our own decissions. It's our own responsibility when we win and when we loose. Can't blame the market, can't blame COVID, or Darwinex :)

Don't take me wrong, my disagreements are just my point of view. I'm not attacking your opinions. In fact I find very valuable readings on this forum (among some noise)

I agree with you that the owner is pure arrogant. I said it in another post. That's poison for a company, I've lived with that in my professional live
 
@FXforfun Well if this problem of channelling retail investors in wrong directions is not solved,collective AuM will stay miserable and you as a trader will not achieve your goals.There are quite a few good darwins with very little AuM after 3-5 years of solid performance.They are overlooked by normal investors.
I personally never used D-score because I have years of experience with trading and investing into traders,so I can read their track-records and trading journals directly without artificial help.But most investors cannot do that and they believe Darwinex for guidance or,equally bad,they follow the herd.
Herd can find good stuff sometimes,but even there they manage to realize losses because of bad timing and emotions.
 
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