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Darwinex: the good , the bad and the ugly

Darwinia would work better with a really better DScore, that require a real work , not this hasty stuff they did in 2020.
Another way to imporve Darwinia would be to extend the allocation to one year.
Longer timespans to reduce the effect of luck.
 
Gargamel said:
It would be better for sustaining and broadening the base of investable traders to implement a scheme like eToro, where interesting traders are getting each month fixed stipend while they are waiting to be discovered by masses and properly funded. Darwinia is too opaque and unstable support for aspiring traders.Most of 'winners' don't get any measurable financial support out of it.
There are maybe 60 3-year or more native trackrecords (some algotraders have few of them),that are showing some signs of life.The rest is come and go.This can continue for another decade if darwinex doesn't give traders real incentive to persist and continue after initial 12-24 months.
A lot of collective AuM would act as a magnet and motivator,but that is not the case at the moment.
Giving a minimal wage to 50 talented traders who don't have more than 500k AuM would do the trick.Maybe somebody at darwinex will think about it after they notice stagnation continues.They should start thinking about psychology of their customers for a change.Some money would come from abandoned Darwinia and the rest should come from shareholders. 300-500k per year is too much of expense?
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Difficult. I don't know how eToro is working (guess they have plenty of investors/venture capital money in their back - is the company puplic traded? ).

But when I listen to the T2W forum, there is a common sence: Do not invest in Darwins with track record less tha 3 years and at least 2 drawdowns. But you demand that Darwinex should risk their money and invest in 'NewBees' after a few month? Everyone has the chance of importing a track record, if you HAVE ONE to show. Sorry to say, but otherwise they ARE a rookie and have to proof your ability to survive when 'swimming with the sharks' in FX.
But I agree in : They have to attract good traders otherwise frustrated investors will leave the plattform
 
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Gargamel said:
Giving a minimal wage to 50 talented traders who don't have more than 500k AuM would do the trick.Maybe somebody at darwinex will think about it after they notice stagnation continues.They should start thinking about psychology of their customers for a change.
Click to expand...
Why do I always think if I read such statements that the author think he can take profit of this but in reality he will not? ;)
Seriously: DarwinIA is much cheaper than people should think. That's why they will continue it.
And if they would stop DarwinIA Darwins like mine and tons of others, which are currently not very attractive for investors, will be closed or left abandoned.
TrainerTXR said:
But when I listen to the T2W forum, there is a common sence: Do not invest in Darwins with track record less tha 3 years and at least 2 drawdowns.
Click to expand...
In reality the max. DD is the main number institutional investors are looking at. That's always suppressed as most Darwins with a long trackrecord cannot deliver it "since inception".
 
IlIlIlIlI said:
In reality the max. DD is the main number institutional investors are looking at. That's always suppressed as most Darwins with a long trackrecord cannot deliver it "since inception".
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Which really wonders me, since personally for me the ROA (instead of %DD) is the key - the ratio between return and drawdown. Since %DD says nothing, if not seen together with the potential (and historical) profit. By adjusting leverage und invested capital you always can control your personal risk in USD or EUR.
 
IlIlIlIlI said:
Seriously: DarwinIA is much cheaper than people should think. That's why they will continue it.
Click to expand...
That is in other words what i tried to say:it offers almost no financial support to traders when they need it.

TrainerTXR said:
Everyone has the chance of importing a track record, if you HAVE ONE to show.
Click to expand...
The story of Migrated track-records is old and there is not much to add.It didn't bring success to investment platform.On the contrary many investors got burned investing in those traders.
IlIlIlIlI said:
In reality the max. DD is the main number institutional investors are looking at.
Click to expand...
How you know that?I think the length of positive track-record is most important for them.If those investors had portfolio of 100 such track-records they wouldn't freak out because of occasional 20% DD here and there.
IlIlIlIlI said:
And if they would stop DarwinIA Darwins like mine and tons of others, which are currently not very attractive for investors, will be closed or left abandoned.
Click to expand...
Exactly that is happening now with Darwinia in place.Most traders don't bother after first 6-24 months.There are quite a few traders with long track-records and neither solid AuM ,nor solid income from Darwinia.They can quit anytime now.
TrainerTXR said:
But you demand that Darwinex should risk their money and invest in 'NewBees' after a few month?
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Where did I say that? I personally look at trackrecords with native 2 years or more.
 
Gargamel said:
.There are quite a few traders with long track-records and neither solid AuM ,nor solid income from Darwinia.They can quit anytime now.
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Where should they be paid for if they can't show continuity in performance for a minimum of 3 months?
What is attractive for an investor if he should share a DD?
Do you want traders to be paid during their DD periods?
Do you know any platform which pays for losing money?
 
Question to all:
Does anyone ever has tracked, wether Darwinex makes money with Darwinia?
In theory it should not be too difficult (just a lot of paperwork in Excel once a month), to track their historical investment and their return in the following 6 months period they are invested ?
Could be a project ...
If YES - how did they compare in % p.a. to other portfolios listed here ?
 
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TrainerTXR said:
Question to all:
Does anyone ever has tracked, wether Darwinex makes money with Darwinia?
In theory it should not be too difficult (just a lot of paperwork in Excel once a month), to track their historical investment and their return in the following 6 months period they are invested ?
Could be a project ...
If YES - how did they compare in % p.a. to other portfolios listed here ?
Click to expand...
I think yes.
@Gargamel used to calculate it.
Just, I dont remember location of that report
In short, Darwinex losed money when investing of top Darwin in Darwinia.
 
TrainerTXR said:
Does anyone ever has tracked, wether Darwinex makes money with Darwinia?
Click to expand...
They don't.Darwinia investments are made with'monopoly money'.It is a marketing tool to attract new traders and ,darwinex thinks, it is motivational tool for existing customers.But most of customers quickly get disillusioned.
 
3 millions from their venture capitalists is not the 10x AUM promissed by Juan Colon but should be good for the company.
Maybe they will invest in real improvements that were abandoned in 2018.
Or maybe go back to decent commercial conditions for the Darwin.
Or maybe more prizes in Darwinia.
 
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I really wonder why Darwinex included WFJ into their "Essentials" filter when the Darwin shows a bad result in the 1J performance and no profit in any time range offered down to 2 years.
Can't they ait until recovery as the same trader has better stuff in this filter?
 
TLN said:
I think yes.
@Gargamel used to calculate it.
Just, I dont remember location of that report
In short, Darwinex losed money when investing of top Darwin in Darwinia.
Click to expand...
I would never invest in darwin when it is up. I invest only when a darwin is in DD. I look at history and see "ok average DD was 15% and now DD reaches 12%..NOW is the best time to invest"..not when an darwin made recently run-up 20%..

My friends want to invest in my darwins..i say "not now..they perform too good. I see in 10 years backtests history there were 20 times DD on average 20%. Wait that DD."

But darwinia invest in those who recently did gains. This is wrong. Therefore entire portfolio of 150 will perform badly..buy "cheap" when an darwin is in DD. Yes must have solid history min 3 years so we see DD statistics.

Look at my GBN. It is obvious to see that now is not good Time to invest.. look at chart you see historical DD. I have 10 years history.. and all is according. But this month it perform good and darwinex will allocate money to it. I do not recomend it to my friends. Wait ar least 10% DD THEN invest. Because of fluctuations.

But maybe there are another darwinex capital which invested as i described as normal investor would do... And darwinia is just to somehow motivate traders to naturaly trade.. otherwaise manipulations would be done..after win serie do special DD just to get funded..
 
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Did you know that there are different spreads used for currency pairs between Darwinx UK and DarwinexEU for retail and professional clients?

Darwinex UK:
1672667642555.png


Darwinex EU:
1672667584154.png


More details here:
 
Interesting math:
"If you use X4 leverage, your profits and losses will be tripled."
source: https://help.darwinex.com/investor-leverage?lang=en

Looks like they use the same math to calculate the "target VaR":

"Thus, in a portfolio with an equity of 5,000 euros, you could invest up to 20,000 euros. 20,000 invested in DARWINs with a monthly VaR(95%) of 6.5% is equivalent to 5,000 invested with a monthly VaR(95%) of 24%."
...
"Is investing in a 6.5% VaR DARWINs leveraged x4 the same as investing in a 24% VaR DARWINs?"
...
"In order to obtain the same results as investing in a 25% VaR DARWIN, every so often you'd need to close the investment in the leveraged DARWIN and then reinvest it in using the leveraged profits."
...
"The more often you do so, the more similar the 6.5% VaR DARWIN x4 will be to a 24% VaR DARWIN."
...
"By investing all your capital in one DARWIN, the monthly VaR will not go above 24%."
source: https://help.darwinex.com/investor-leverage

Ahh.. what? 24%? 25%? I always thought 6.5% x4 = 26%.
Looks like they need an editor.
 
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