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VaR and Risk Manager

Well, I think we can start about something which has been bothering most of the traders.

First of all, I am grateful for Darwinex, their execution is always on spot. I myself do not trade for accuiring investors and all (however that is a possibility which is beautiful in design).

So, now some points which has been bothering.
First, I believe the recent changes (performance fee, VaR, New D-Score and finally but not least the migration of the forum) are very ad-hoc. Saying that these huge changes should be and could be released earlier to adjust to these changes.

I myself for example see that I am really struggeling to get my VaR to the new (preferred) value of 6.5.
I can imagine more traders feel like this.

Our friend Federico (@itstradingtime) did adjust this amazingly good but also he has shared his concerns.
 
SkyField said:
I myself for example see that I am really struggeling to get my VaR to the new (preferred) value of 6.5.
I can imagine more traders feel like this.
Click to expand...

@SkyField do you trade one or multi asset? I talked to some traders and they struggle to get to 6.5 when they trade more than 1 asset.
 
In my opinion, VaR can never be considered as an advantage if you are a good trader and know what you are doing.
There's not much you can do about it, except study a risk management for your strategy that complies with the requirements of the VaR, so you won't have the multiplier that changes every single day.
If you want, I can try to help with that :)
 
@hefoba

Thank you for your answer!
I trade currencies, gold, silver and oil. So yeah, it is kinda multi asset.

For now I trade the same way like I did before. Hoping that the VaR will balance out at some point. And from there I'll try to make the adjusments needed
 
SkyField said:
@hefoba

Thank you for your answer!
I trade currencies, gold, silver and oil. So yeah, it is kinda multi asset.

For now I trade the same way like I did before. Hoping that the VaR will balance out at some point. And from there I'll try to make the adjusments needed
Click to expand...

As I can see from my different accounts at DarwinEx ( Import some from other brokers ) Then trade one asset will give you a more "clean" VAR curve. I'm also trade multi asset and the VAR can be less constant. As @itstradingtime wrote most important not have multiplier jumping around.
 
Hi,

The good:
-You can create a Darwin
-You have a third party reviewing your trading so not just your opinion telling how your trading is.

The Bad:
- My Mt4 account on other brokers goes better than on DarwinEx. So without Darwin solution I wouldn't I trade at DarwinEx ( I trade 6 brokers and DarwinEx not in top 3)

CavaliereVerde said:
We can use this topic to discuss our opinions about the recent policies on Darwinex and their decision to evict the passionates fo the Community.
No insults but let' try to analyze the events in a clever way. ;)

View attachment 288184
Click to expand...
 
I see..
Since I trade for a living and the commodities can look very clean I find it nonsense to pass on these trades if they occur.
However my VaR is jumping a lot less then it did 1 month ago. But it is a problem nevertheless
 
Hi, guys, happy we've a new place to discuss.

Emanita and i, we've a 0.67% VaR target, to have the maximum of the replication factor on the Darwin PDC (x 9.75).

We're 2 persons to manage this devilry.


- What can i say from my side is that i've to trade in constant lot, in constant risk and always on the same asset. I have trained (very) hard during 5 years to be able to generate performance trading that way...

- What can i say from her side (Emanita) is that she must verify the daily risk, the drawdown and manage the amount on the trading account. For the moment, She doesn't had to intervene on the daily risk, neither the drawdown but she did it on the trading account.



From my point of view, we are blind about an important information. Before we enter on the market, we don't know the D-Leverage. It could help traders a lot, if we have an estimation about the D-Leverage, before we enter in the market... Even, an estimation about what could be the VaR the day after if we enter with "x" lot... Like a Monté-Carlo Simulation...

Does such a tool exist? I would love to... I pretty sure Darwinex could do it, instead of make "Python" and bla bla algorithmic videos, losing time and energy for nothing...

Anyway, without having this information BEFORE, we are still blind and we can only undergo the VaR without being able to really master it.

To trade the market is already very hard.

To do it while managing the VaR is the greatest challenge that i had to do.

I think now, we are able to do it... but we need to be two people.

Good luck to all, for this challenge!
 
Last edited:
Pure Pip Producer said:
Emanita and i, we've a 0.67% VaR target, to have the maximum of the replication factor on the Darwin PDC (x 9.75).
Click to expand...

Hi,

Do you seek investors? If you do so why do you hide which asset you trade?
Would be good to know which type of asset when building one portfolio

//H
 
My motto is that I am not looking for investors, it is investors who are looking for me... That's the way i have built my mentality, my mental structure, my mind, my progression as a trader, my strategy, my global strategy, all my life actually...

But Emanita is looking for investors, they must speak with her, not with me ;)




We don't keep that so secret, we trade the GBP/USD only.

But, as it's possible that, one given day, the volatility (so the D-Leverage") could be estimated too high, we would trade the EUR/USD.

It's not hided on fxblue : https://www.fxblue.com/users/darwinpdc

To be honest, i don't think an investor really need to know that.

We will probably show it in the next days, we will see.

Emanita will decide for that.

Me, i don't mind.

Girl Power ;)


EDIT : For me, a woman is more reliable to be a Risk Manager, that's why i work with her.
 
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Hello @Emanita ,

From your introduction thread:

Emanita said:
As we stop on a high water mark, we will not be trading for the rest of the month.

For us, overtrading is a mistake. So this is the second phase: resting and analysing the market for the two-thirds of the time.
Click to expand...

Interesting view.

I think this may have influence on Var / Rs?

I mean: if 1 month, you reach your high water mark in within just say 3 days and you don't trade for the rest of that month. And next month, you need every single trading day to reach it.

I would think Var rises in that second month, with Rs getting lower?

Just a thought.
 
Pure Pip Producer said:
To be honest, i don't think an investor really need to know that.

We will probably show it in the next days, we will see.

Emanita will decide for that.
Click to expand...

Investors like me want to know if your Darwin and my trading have some correlation or not. That's why I want to see asset traded by Darwins.

That just me :D

Good luck with your trading !
 
SteadyWins said:
Hello @Emanita ,

From your introduction thread:



Interesting view.

I think this may have influence on Var / Rs?

I mean: if 1 month, you reach your high water mark in within just say 3 days and you don't trade for the rest of that month. And next month, you need every single trading day to reach it.

I would think Var rises in that second month, with Rs getting lower?

Just a thought.
Click to expand...

Hi @SteadyWins ,

The VaR is calculated according to 2 things: lot size and trades duration.

Your thought is right... If we need more time to reach the goal, the Var could increase.
That's why it will be my role to adjust the amount of dollars on the trading account to lower the VaR.

About the risk stability, we won't have any problem because we are always trading with constant risk.
We only pyramid when the first position is secure.

PS: just to let you know, when we reach the goal, we keep trading for us.
Yesterday, @Pure Pip Producer caught " a positive black swan" : 300 pure pips in one single trade on GBPUSD.
Hope this little bird will be back soon 🦢

Emanita
 
Last edited by a moderator:
Emanita said:
Your thought is right... If we need more time to reach the goal, Var could increase.
That's why it will be my role to adjust the amount of dollars on the trading account to lower the VaR.
Click to expand...
Great solution. This proves me that there can always be solutions (we heaven't thought about earlier) to the get our Var constant. And maybe to get other IA's better. By continuing to think, try, test and so on. Depending on the characteristics of the traded system, we have to search for tailor-made solutions.

Very good!


.
 
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