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Correlation, divergence & DarwinIA

12 September 2016

Remember the Darwinex Correlation test? This feature tracks the correlation between different DARWINS & so you diversify your portfolio’s risk.

Also, as you may recall, the correlation measure determines a DARWIN’s eligibility for DarwinIA’s prizes (out of two highly correlated DARWINS, only the highest level & D-Score DARWIN is DarwinIA eligible).

Many providers have complained that the correlation threshold was too restrictive. Further, the count of active listed DARWINS keeps growing, which compounds the risk of the excess-correlation trigger kicking in!

With this in mind, we’re relaxing the DarwinIA eligibility criteria when it comes to correlation:

1. New (less restrictive) Correlation Thresholds

Starting today, the new, less restrictive DarwinIA correlation criteria are.

  • If a Provider lists 2 DARWINS with a correlation higher than 0.5, only the one with the highest level & highest D-Score is eligible for DarwinIA.
  • If 2 independent Providers list DARWINS with positive correlation higher than 0.8, only the one with the highest level & highest D-Score is DarwinIA eligible.

This significantly reduces the number of DARWINS being left out due to correlation!

2. New Divergence Threshold

With the growing DarwinIA capital allocation and with several DARWINs gaining Assets under Management at speed, the time has come to activate a max. allowable divergence threshold to enter DarwinIA.

We’re activating the lock-out as we’re experiencing a (much) higher than theoretically reasonable divergence with our DarwinIA investments. High divergence  usually owes to low liquidity when some DARWINS trade during illiquid market conditions –  or when providers market strategies / signals to venues other than Darwinex. In some (rare) instances, divergence has spiralled out of control to both Darwinex & investors detriment.

This is why, going forward: DARWINS with negative divergence ≤ – 1% won’t be DarwinIA eligible.

The DarwinIA lock-out mirrors the DARWIN lock-out methodology announced a couple of months ago. As you may recall, DARWINS with a negative divergence below – 1% were supposed to get closed to new investments.

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You may be asking yourself… how come some DARWINS already reached the lock-out divergence level but have not been closed to new investment yet? The reason is simple: we decided against closing them because this would hinder a major improvement for investors that we are working on (sorry, we can’t tell just yet!).

For the time being, instead of closing DARWINS with high divergences, we’ll stop allocating DarwinIA prizes to them.  Also, if you are planning to invest in a given DARWIN, review its divergence as part of our due diligence!

If your DARWIN is not eligible for DarwinIA due to negative divergence, feel free to reach out to info@darwinex.com: nothing pleases us more than helping you profitably grow your assets under management – divergence hurts us much as it hurts you!

 

 

 

 

 

 

 

 

Last News

Vote Darwinex

1 August 2017

Darwinex has been shortlisted as a candidate for the European Fintech Awards 2017. In order to make it to the final round, we’d need to get as many votes as possible. It’d mean everything to us if you could please click here to vote for Darwinex . It won’t take you more than 20 seconds, you’d just […]

Darwinex has been shortlisted as a candidate for the European Fintech Awards 2017.

In order to make it to the final round, we’d need to get as many votes as possible. It’d mean everything to us if you could please click here to vote for Darwinex .

It won’t take you more than 20 seconds, you’d just need to click the link above and click the blue “Vote Darwinex” button.

Big thank you as always, please spread the word!

 

 

 

 

 

And the DarwinIA winners are…

The July edition of our DarwinIA trading challenge came to its end. Below you can find the 48 winners of our € 4,000,000 notional allocation for a 6 month period. Place DARWIN July’s notional allocation 1st $ATL € 300,000.00 2nd $LVS € 250,000.00 3rd $FGC € 210,000.00 4th $KVL € 170,000.00 5th $CLA € 150,000.00 6th […]

The July edition of our DarwinIA trading challenge came to its end. Below you can find the 48 winners of our € 4,000,000 notional allocation for a 6 month period.

Place DARWIN July’s notional allocation
1st $ATL € 300,000.00
2nd $LVS € 250,000.00
3rd $FGC € 210,000.00
4th $KVL € 170,000.00
5th $CLA € 150,000.00
6th $WPB € 140,000.00
7th $JKC € 130,000.00
8th $SPI € 120,000.00
9th $MOW € 110,000.00
10th $WPQ € 110,000.00
11th $STM € 110,000.00
12th $DZT € 100,000.00
13th $THA € 100,000.00
14th $TUL € 100,000.00
15th $DOF € 90,000.00
16th $MBC € 90,000.00
17th $DDY € 90,000.00
18th $PGH € 80,000.00
19th $BUE € 80,000.00
20th $HFS € 80,000.00
21st $NGS € 70,000.00
22nd $GTD € 70,000.00
23rd $ICX € 70,000.00
24th $WFJ € 70,000.00
25th $AOF € 60,000.00
26th $TKT € 60,000.00
27th $AXF € 60,000.00
28th $XGU € 60,000.00
29th $OOA € 60,000.00
30th $VTJ € 60,000.00
31st $QTB € 50,000.00
32nd $XTT € 50,000.00
33rd $DLF € 50,000.00
34th $CEM € 50,000.00
35th $ENI € 50,000.00
36th $RVU € 50,000.00
37th $ICA € 50,000.00
38th $EII € 40,000.00
39th $RAO € 40,000.00
40th $DNA € 40,000.00
41st $AQA € 40,000.00
42nd $EEE € 40,000.00
43rd $XXR € 40,000.00
44th $YMK € 40,000.00
45th $CSP € 30,000.00
46th $UYZ € 30,000.00
47th $TUB € 30,000.00
48th $KYQ € 30,000.00

Updates to the MetaTrader 4 Platform

20 July 2017

We have been notified by MetaQuotes Software Corp. that as of 1 October 2017 (Sunday), support for Windows XP, Windows 2003 and Windows Vista will be discontinued for the MetaTrader 4 platform. As potential hardware capabilities can no longer be recognised, these operating systems are considered to be outdated. MetaQuotes has stated that Windows 7 […]

We have been notified by MetaQuotes Software Corp. that as of 1 October 2017 (Sunday), support for Windows XP, Windows 2003 and Windows Vista will be discontinued for the MetaTrader 4 platform. As potential hardware capabilities can no longer be recognised, these operating systems are considered to be outdated.

MetaQuotes has stated that Windows 7 is the minimum required operating system version for running MetaTrader 4. However, using the 64-bit versions of Windows 10 is strongly recommended.

Older versions of MetaTrader 4 will continue to work on Windows XP, Windows 2003 and Windows Vista. After 1 October 2017 (Sunday), updates will no longer be received and installers will not run on these operating systems. Without having your MetaTrader 4 up to date, you may not be able to execute trades or have guaranteed stability.

As always, feel free to contact info@darwinex.com if you have any questions or need a solution for this change!

And the DarwinIA winners are…

3 July 2017

The June edition of our DarwinIA trading challenge came to its end. Below you can find the 48 winners of our € 4,000,000 notional allocation for a 6 month period. Place DARWIN June’s notional allocation 1st UEI € 300,000.00 2nd VQB € 250,000.00 3rd JKC € 210,000.00 4th XIN € 170,000.00 5th DZL € 150,000.00 6th […]

The June edition of our DarwinIA trading challenge came to its end. Below you can find the 48 winners of our € 4,000,000 notional allocation for a 6 month period.

Place DARWIN June’s notional allocation
1st UEI € 300,000.00
2nd VQB € 250,000.00
3rd JKC € 210,000.00
4th XIN € 170,000.00
5th DZL € 150,000.00
6th QTN € 140,000.00
7th JJP € 130,000.00
8th UYZ € 120,000.00
9th LOM € 110,000.00
10th AXF € 110,000.00
11th VQG € 110,000.00
12th MBC € 100,000.00
13th PMZ € 100,000.00
14th GPZ € 100,000.00
15th KDU € 90,000.00
16th FSB € 90,000.00
17th SRK € 90,000.00
18th NEW € 80,000.00
19th ZUV € 80,000.00
20th CLA € 80,000.00
21st ATL € 70,000.00
22nd FMT € 70,000.00
23rd DZT € 70,000.00
24th SPI € 70,000.00
25th HIB € 60,000.00
26th ICA € 60,000.00
27th MOW € 60,000.00
28th ECC € 60,000.00
29th AOF € 60,000.00
30th RSR € 60,000.00
31st LVS € 50,000.00
32nd YHN € 50,000.00
33rd LDD € 50,000.00
34th SQG € 50,000.00
35th XXR € 50,000.00
36th JZH € 50,000.00
37th RWL € 50,000.00
38th OPK € 40,000.00
39th EZX € 40,000.00
40th GDM € 40,000.00
41st KYQ € 40,000.00
42nd VCT € 40,000.00
43rd STT € 40,000.00
44th QTB € 40,000.00
45th VTJ € 30,000.00
46th CJN € 30,000.00
47th LSC € 30,000.00
48th IZT € 30,000.00

Darwinex amended trading hours (US Independence Day)

29 June 2017

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2017 (all times are in UK time).  Instrument 3 July 2017 (Mon) 4 July 2017 (Tue)  FX 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue   DARWINS 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue   COMMODITIES […]

Please note the amended Darwinex trading hours for the upcoming US Independence Day holiday on 3 & 4 July 2017 (all times are in UK time).

 Instrument 3 July 2017 (Mon) 4 July 2017 (Tue)
 FX 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue
  DARWINS 22:05 Sun – 22:00 Mon 22:05 Mon – 22:00 Tue
 

COMMODITIES

   
Gold* 23:01 Sun – 21:59 Mon 23:01 Mon – 18:00 Tue
Silver* 23:00 Sun – 22:00 Mon 23:00 Mon – 18:00 Tue
Platinum* 23:00 Sun – 22:00 Mon 23:00 Mon – 18:00 Tue
Palladium* 23:00 Sun – 22:00 Mon 23:00 Mon – 18:00 Tue
US Crude* 23:00 Sun – 22:00 Mon 23:00 Mon – 17:45 Tue
Natural Gas* 23:00 Sun – 22:00 Mon 23:00 Mon – 17:45 Tue
 

 INDICES

 
Australia 200 23:00 Sun – 22:00 Mon 23:00 Mon – 22:00 Tue
 Europe 50 23:00 Sun – 22:00 Mon 23:00 Mon – 22:00 Tue
France 40 23:00 Sun – 22:00 Mon 23:00 Mon – 22:00 Tue
Germany 30 07:00m – 21:00 07:00m – 21:00
Spain 35 07:00m – 19:00 07:00m – 19:00
Japan 225* 23:00 Sun – 18:15 Mon 23:00 Mon – 18:00 Tue
 UK 100 23:00 Sun – 22:00 Mon 23:00 Mon – 22:00 Tue
 US SPX 500* 23:00 Sun – 18:15 Mon  23:00 Mon – 18:00 Tue
 US Tech 100* 23:00 Sun – 18:15 Mon  23:00 Mon – 18:00 Tue
Wall Street 30* 23:00 Sun – 18:15 Mon  23:00 Mon – 18:00 Tue
*Amended Darwinex trading hours.

 

As always, at info@darwinex.com we’ll be happy to assist you!

High volatility expected due to RBNZ Interest Rate decision today

21 June 2017

The Reserve Bank of New Zealand is releasing its Interest Rate Decision today (21 June 2017) at 21:00 GMT. As you may recall, trading is disabled from 20:59:59 to 21:01:00 GMT due to the low liquidity available on rollover, so please bear in mind that you won’t be able to open / close trades from […]

The Reserve Bank of New Zealand is releasing its Interest Rate Decision today (21 June 2017) at 21:00 GMT.

As you may recall, trading is disabled from 20:59:59 to 21:01:00 GMT due to the low liquidity available on rollover, so please bear in mind that you won’t be able to open / close trades from 20:59:59 to 21:01:00 GMT during this volatile news release.

When setting your SL / TP, kindly note that large gaps are expected when trading resumes at 21:01:00 GMT.

Please do not hesitate to contact us at info@darwinex.com should you need assistance.