[HOWTOINVEST] Your approach as a Darwinex Investor

[CavaliereVerde]

How is your Darwinex portfolio doing so far this year?

2025 is still young but I have a nice +13% on L1Y.
2024 was closed with +8.8%.

 

[DeLorenzoFund]

2025 is still young but I have a nice +13% on L1Y.
2024 was closed with +8.8%.

Great start of the year! I'm in the negative so far but hopefully we get some nice setups soon 🙂

All we can do at the end is diversify and stick to our strategies.

 

[DeLorenzoFund]

I did some updates to my overall portfolio asset allocation. Combining long-term investing with my trading strategies to increase diversification and possibly improve performance over the long run.

Below is a chart showing the current distribution and the Darwins associated with the specific strategies.

This year has been hard on all of those strategies and the correlation has been close, most assets have struggled for the past few months but that's the market and periods like this do occur.

 

[DeLorenzoFund]

I wanted to update this post since I've been adding a few new strategies to the portfolio this year and currently testing another one. This is the updated composition of my overall portfolio this year, there will be some minor allocations changes next year but the strategies remain the same. Below is the updated pie chart along with a detailed description of each approach. Those are all strategies part of my main portfolio, I run a few of the same strategies on Darwinex but some of them cannot be replicated due to assets not being available.

This is the list of the strategies that I currently run on my portfolio as well as on Darwinex.

Index Trend: BVK
Index Mean-Reversion: 50% of FZH
FX Carry: 50% of FZH
Sector Trend: CQL
Long-Short Equity: DXH

This is all part of my Long-Term '' Retirement'' Portfolio, I do not withdraw out of it but only deposit, rebalancing it every year, Those allocations are not static for the life of the portfolio, they will gradually shift towards more of a conservative stance as I near retirement, following a Life-Cycle Investing approach similar to target-date funds, meant to grow capital aggressively in the early stages and gradually shift towards a more conservative allocation to preserve capital at later stages.

I track the performance of the overall portfolio as well as each individual strategy, updating the performance on a weekly basis on a portfolio tracking spreadsheet.

 

[orevacam]

Guys, if the open P&L is positive and the equity is above the starting €10,000, why does the investment graph show a slightly negative percentage?

 

[IlIlIlIlI]

Guys, if the open P&L is positive and the equity is above the starting €10,000, why does the investment graph show a slightly negative percentage?
View attachment 345605

The management fee is calculated daily and deducted daily from the account balance.
It is defined as nominal 1.2 % per year which is 0.1 % per month as there is no interest to pay on a negative balance.
On your screenshot you see that -$ 2.68 is available - that is the result of the daily management fee deduction of the account balance.

 

[orevacam]

The management fee is calculated daily and deducted daily from the account balance.
It is defined as nominal 1.2 % per year which is 0.1 % per month as there is no interest to pay on a negative balance.
On your screenshot you see that -$ 2.68 is available - that is the result of the daily management fee deduction of the account balance.

Yes, but if the open profit and loss is +$58, shouldn't that percentage be positive? The management fees are only $2 ath the moment
If I closed all my positions now, I would have more money in my account than the €10,000 I invested a few days ago.

thank you

 

[DeLorenzoFund]

Yes, but if the open profit and loss is +$58, shouldn't that percentage be positive? The management fees are only $2 ath the moment
If I closed all my positions now, I would have more money in my account than the €10,000 I invested a few days ago.

thank you

I've noticed a similar issue when I first started the demo account. It might have to do with initial slippage at the time your orders were executed in the darwins. What Darwinex shows as divergence. I was quite confused by it at first but that was the only explaination I could come up with. It only happened after I placed the initial orders. Let me know if you guys figure out an actual cause of the issue 😄

 

[IlIlIlIlI]

Yes, but if the open profit and loss is +$58, shouldn't that percentage be positive? The management fees are only $2 ath the moment
If I closed all my positions now, I would have more money in my account than the €10,000 I invested a few days ago.

thank you

That's like the difference between equity and balance.
The balance shows the cash account with -$ 2.68, the equity shows the value of your positions added to the balance.

I've noticed a similar issue when I first started the demo account. It might have to do with initial slippage at the time your orders were executed in the darwins. What Darwinex shows as divergence. I was quite confused by it at first but that was the only explaination I could come up with. It only happened after I placed the initial orders. Let me know if you guys figure out an actual cause of the issue 😄

The divergence shows the diffence between the Darwin's positions and the investor's positions. It only happens when orders are executed (opening or closing a position).
There are several reasons for divergence: time delay between trade executions, volume of best price offers of the market exceeded, difference between a held position and entering a position (spread), difference to the traders currency and maybe more (market maker plays) in certain situations.