As a side note,I hope my previous post will encourage some people to ditch Google search engine (I use DuckDuckGo) and Youtube(owned by Google),because Google is corrupt company.
I am glad that I noticed how Darwinex is pushing Darwinia contest for their demo money onto unsuspecting public.It is time to draw conclusions and give recommendations after all material provided up to now( I didn't report all problematic stuff I prepared,I hope what was posted is enough ).
For traders: you have to forget about Darwinia and concentrate on building the best possible track-record for serious investors.Darwinia pushes,as monthly contest,traders into taking too much risk and trading too often(Regularity criteria) and is heavily dependent on D-score which proved to be nonsense so far and bad influence on traders.
If you want to attract and retain serious investors(retail and maybe later also institutionals,if Darwinex brings them on) you must concentrate on your Risk and DD,not on max. Return.
Even if you attract dumb money with high Return,they will enter on highs and abandon your darwin during first normal DD and realise losses.In that scenario you earn no fees.Such investors are useless.
If you go the conservative route,you will get nothing for years(2-3 first years),but you will build strong foundations and you will last, and provide valuable service to investors.
If you chase max.Return and compete with others you will most probably burn out or you will have unstable investors base,which will drive you crazy and add additional pressure on you during each DD.
For investors:Firstly,ignore all Darwinex suggestions ,D-score,interviews,Migrated track-records...
Get the grip on reality of this new asset class-darwins.At present Risk Manager conditions,reality is if you can find darwins that produce 10% annualized with around 5-12%DD you have found very good stuff.Those producing 15% annualized are rare,very rare.
10% annualized profit can look like:1.year 15%,2. year 5%,third year 10% or 1.year 5%,2.year20% and third year 5%...Darwins are not bank deposits.The good ones are rising on yearly basis but there are DDs in between.
Be patient and enter your chosen darwins only during their occasional DDs.You will minimise possible loss if darwin goes of the rails for whatever reason(going into 15-20%DD from high).You will be relatively quickly in the money when your darwin starts rising from DD and after a while you will be able to move your initial Stop-loss order to break-even and enjoy the ride for years.Even if good darwin later goes into unacceptable DD,you will by then rise your SL so high that you will get out with profit.
Initial SL can be 10%(remember you are already entering during DD) and if you divide your portfolio into five good darwins equally weighted,your initial monetary risk for such individual entry is only 2% of your capital.
When you enter during DD,you are psychologically ready for loss and that loss is limited and only half of what you would risk if entered on highs.People entering on highs are going in optimistic and break-down psychologically when suddenly there is deep or protracted DD.They exit when smart money is getting ready to go in.It is also support for trader if he see money coming in during DD and not an stampede out.In Hedge-funds people are locked in for certain periods,but darwins are liquid (investors can exit whenever they wish) and temptation to exit during normal DD is too big for normal people, when they are already in 5-10% loss because of entering on highs and they are staring into another 10% additional loss.Some people in such situations completely freeze and endure complete break-down(30% loss or more) because they get surprised by DD and losses.
Pay attention to Divergence.It can eat the same amount of profits as fees in some darwins,so you end up with only half of yearly nominal profits.
Needless to say,you cannot invest in darwins with less then 2-3 years of actual trading on Darwinex platform.That much time is needed to establish roughly annualized Return and to see how trader behaves during DD and how his normal DDs look like.Also you avoid potentially doctored or track-record farming Migrated accounts in the same way.
Don't worry about missing profits by waiting on DD,every darwin enters DD eventually.Use Pending Buy orders for your entry if you are afraid you will miss it.Also don't worry about missing some nice darwin,new darwins are rising every year and more and more of them mature when they cross 3 year line.This is still very young investment platform.
-score into D-Score , I would have left that way...
