Why Darwinex is not growing?

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Why Darwinex is not growing?


  • Total voters
    24

LongVision

Active member
177 324
After 9 months we are close to a x0.8.
If this trend continue then there is also question of survival for darwinex.

Increasing fees and hoping for a growth is a pretty odd logic...
Actual management fee impact is >1.2% if we consider compounding effect due to daily deduction of m. fee.
I also agree that M.fee of 1.2% is very high if we consider annual return of darwin assets class(<10%).
10% var target seems to be optimal for darwins to neutralize m. fee impact.
 
Last edited:

FXforfun

Member
54 76
If this trend continue then there is also question of survival for darwinex.
That was pretty clear to me after they stopped their Marketing activity that was very centered on Youtube content sharing their (Juan Colon mostly) vision and new ideas.

My guess is that it's connected with their selling/Partnership with IB. But who knows, after all never had more news on that and as far as I know IB didn't publish any agreement with Darwinex. Maybe the operation fucked up and Darwinex is just drifting
 

Madhobbit

Newbie
1 2
I have followed Darwinex for years now - I like them because they are different in many ways and they sort of go against the grain. No doubt its tough - lets face it the CTA environment has been tough the last 4 years or so - finding quality managers is tough.....but the fact they offer something slightly different means it would be a loss if they were to disappear.
 

FXforfun

Member
54 76
I have followed Darwinex for years now - I like them because they are different in many ways and they sort of go against the grain. No doubt its tough - lets face it the CTA environment has been tough the last 4 years or so - finding quality managers is tough.....but the fact they offer something slightly different means it would be a loss if they were to disappear.
I agree. But the fact is the same, they are vanishing
 

QAVinversion

Newbie
8 12
I love this company, and it would hurt me a lot if it closed, I sincerely do not think it is fading away, they have simply stopped announcing what they will do, I imagine not to give advantage to the competition (which they do not inform).
 
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IlIlIlIlI

Well-known member
309 282
@QAVinversion
I don't even think about a closure of Darwinex.
In March they filed some new legal publications for the owner of Darwinex, TRADESLIDE VENTURES LIMITED.
I didn't really read it yet, but if I got it right just by viewing some pages, they are now allowed to allocated (and sell) more than 1.3 million new shares of this company to get fresh money in the company.
I don't know or read anything about the background of these filings.
 

Naragot

Junior member
11 30
1) High fees. Really. One of my family accounts has already wasted about 2k$ on management fees. Previous fee model was much better.
2) No marketing at all. Even a very good product can not be sold without marketing. Where is activity in social media, own community? Why Darwinex PR managers don't visit any forums like this one?
3) Very weak IB system. 15% from new ultralow trading commissions is not attractive at all.
4) Retail investors love risk. Darwinex shows only 6.5% VAR graphs. And it is not even evident that you may leverage your investments. A retail trader comes, sees 10% (in good situation) and then immediately closes the browser tab. It is not interesting for them even with low DD. Show them the graph with 30%-50%-100% performance with higher DD and they will give you their money.
5) Darwinex needs an off-shore company for gamblers where it would be able to provide risky investments. Now all gamblers go to IC Markets because they provide high leverage. And moreover IC Markets has a very big IB community.
 

Gargamel

Active member
244 465
4) Retail investors love risk. Darwinex shows only 6.5% VAR graphs. And it is not even evident that you may leverage your investments. A retail trader comes, sees 10% (in good situation) and then immediately closes the browser tab. It is not interesting for them even with low DD. Show them the graph with 30%-50%-100% performance with higher DD and they will give you their money.
This point doesn't hold against reality of Darwinex. Problem is Loss Aversion of investors in face of significant DD.In this case traders don't get their Performance fees when investors persistently 'buy high and sell/exit low'.
Darwinex is only suitable in the long run for Institutional investors and as substitute for saving in the bank for Retail investors.
Gamblers and greedy investors think they can withstand psychological pressure of significant DD,but practice here at Darwinex has shown that is not the case.
 

CavaliereVerde

Experienced member
1,306 1,689
@Gargamel
I agree but the price to pay for this low volatility is too high.
Max var is 6.5% but REAL average var of the darwin asset class is ~5%
Paying 1.2% management fee for this volatility is too much.
I manage a profitable leveraged portfolio and I expect 15% annualized but this means that I am paying 3.6% on my equity.
 

CavaliereVerde

Experienced member
1,306 1,689
Let' s speak in € .
Management fees are calculated YTD.
For my veterans portfolio I paid 6€ management fees for 2021
Performance fees are 6€ too on last 3M
Net profit is 22€ on last 3M
 
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IlIlIlIlI

Well-known member
309 282
Let' s speak in € .
Management fees are calculated YTD.
For my veterans portfolio I paid 6€ management fees for 2021
Performance fees are 6€ too on last 3M
Net profit is 22€ on last 3M
It's not a real big difference based on the fees if you calculate the old fees: just 4 € more net profit.
IMO a significantly higher difference against your investment comes from the real reduction of the VaR b< the last change:
with a simple calculation a 10% VaR would double your profit against the estimated 5% real VaR (I agree with your calculation above where raised by the target VaR reducing the replication factor) which would at least double your net profit.
 

IlIlIlIlI

Well-known member
309 282
Gamblers and greedy investors think they can withstand psychological pressure of significant DD,but practice here at Darwinex has shown that is not the case.
They are more successful on other platforms.
What I'm missing at Darwinex is a definition of traders and investors they want.
 
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davidautentico

Junior member
17 38
Almost all investors are dumb money in Darwinex.

I've seen how my investors close their losing positions when some DD appears or if the darwin doesn't make 5% in two weeks..

IMO, not solution here. Darwinex needs institutional investors, otherwise they have to return to 10% VAR to allow lucky Darwins get some 100% and therefore, attract dumb money again (etoro model).
 
 
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