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[HOWTOINVEST] Investing Darwins: pitfalls, guidelines and expectations

Hi Gargamel,
i would like to thank you to bring us all these very good informations.
I don't really know why the people in general believe in Quants... At the beginning, the Quants existed only to create algorithms able to fragment the big orders at light speed to make possible the real traders to not be detected when the enter in the market.
Then, few years ago.. around 15 maybe more, they started to think they can trade by themselves directly.
They can not.
They can not because, they learned at school and at the University some things that are encrusted very deep in their brain.
These things prevent them to master the Drawdown and the Time Drawdown. They can even not be sure to be positive at the end of the year... what is the strict minimum to be able to be called a winner.
The Reality is at the Opposite of this.
A Quals can.
A Quants can't.
And it's not me who say that.
It's Nassim Nicholas Taleb.
So, the day we could have a "Quals Conference", i will go for sure... héhé
Since there is not "Quals Conference", i would always prefer to go to the beach.
Thanks again for your work.
I tried to do the same since several years to prove that Darwinex is the good concept but with some wrong ideas that kill the initial concept.
It's like if they saw off the branch they are sitting on.

Have a nice day.
I'm done with the performance.
Will sit and watch for the rest of the month... 😎
 
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We all agree that trading and investing is very difficult, too often past return is due to luck.

They dont' make money trading neither investing, at least not officilly as a company.
Javier Colon makes money with his ULI .

I don't blame them because they lose.
I blame them because the mission has changed.
Until 2018 the mission was to improve, now the mission is to raise money.
If you raise money you are a friend, even if you are not alpha.
 
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iry1.png
 
  • Haha
Reactions: TLN
Now we come to Migrated track-records onto Darwinex platform.
Darwinex was and still is very eager to migrate other traders onto his place from other brokers with MT4.
The more beautiful Equity curve looked,the better.It is good for business.Dumb money absolutely loves such stuff.When they see those straight lines,they cannot resist even when wiser,more experienced people are posting well reasoned questions in the forum.The greed blinds people.Darwinex is happy to serve such food to the masses periodically and in spite of vocal protests from more conscious users of platform(investors and traders alike). At the end,it came so far that Darwinex locked main thread with such protests in the forum and let it sink into oblivion.
I will post only few most stupid examples here.
 
Examples of threads in official forum,where smarter users were protesting such policy,trying to protect ignorant investors and honest traders from such unfair competition for AUM.

Migrations.png
Migrations1.png
 
Another example of egregious Conflict of interest on the part of Darwinex:
Their famous show-case darwin ERQ

In April this year I accidentally stumbled upon bad trading in ERQ,while preparing myself to take position in AUD/USD.This scalper went in selling AUD in such position that I couldn't understand at all.Literally on no time-frame was there a sell opportunity.He naturally started losing immediately and it went for days.If my memory is right,he went 230 pips in red in AUD.Quite an achievement for a scalper of his calibre.
What a company does? Closes the thread in forum belonging to this darwin.There were absolutely no reasons on the part of Moderators to do that-no fighting in that thread.
In June there was even worse incident-thread closed,no questions allowed.

ERQ2.png


ERQ3.png


ERQ1.png


ERQ thread.png
 
Sadly 2020 has been a tough year for many different strategies, hopefully you will revisit those spotlight traders after some more time has passed to find at least some of them turning positive again.
 
As for the argument about showcasing the recent lucky traders in order to bring in more AUM.... Would more AUM actually get to other Darwins long term if those ones were not showcased as hard? Will investors tend to buy the hotshot of the month and bounce from Darwinex when it didn't work out or will some investors stick around and try investing in other Darwins? I think it is in Darwinex's interest to gain new AUM by whatever means possible but also to retain that AUM for as long as possible. Would Darwinex react to a low retention rate of AUM and how might they react?

As for the new fee structure.... Is 1.2 percent management fee too high? Is 5% of profits not at least some incentive for them to try and get the investor money going in to "good" Darwins? Is a management fee + share of profits really that much of a different interest than just taking profits only? Is it not at least a step in the right direction from charging investors commissions?

Name another similar exchange where the interests are more aligned than Darwinex.

Don't get me wrong I am against their current migration policy and against the removal of ALL the IA from the D-Score but I also think that I will either be proven wrong over time or they will figure it out and make the necessary changes to maximize retention of AUM and good traders.
 
endo77 said:
As for the new fee structure.... Is 1.2 percent management fee too high? Is 5% of profits not at least some incentive for them to try and get the investor money going in to "good" Darwins? Is a management fee + share of profits really that much of a different interest than just taking profits only? Is it not at least a step in the right direction from charging investors commissions?
Click to expand...
I dont' know if it is fair or too high but I dont' like to be teased by them when they say that it is good for customers or tha it would bring 10x aum.
I prefer peopole to tell me the truth they needed money, not this bullshit of "expanding investor base".
I can accept worse conditions, I can't accept to be fucked around... :mad:
 
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Do you want to defend and justify them? Fine it is your right.
I defended them for 3 years, and this is the result...
Now there is nothing to defend, pure greed and pure bullshit marketing.
 
No free lunch. Jack Schwagger analysed cyclical investing to figure that about alpha generating strategies, it’s optimal to invest at times of under value over time, that there is a force of mean reversion happening. Maybe they should bookmark competency for later and start to interview during hollows.

On a side note, glad to verify some new found freedom in talks. Thanks for the compilation of info
 
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