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Darwinia Contest – 15 months on

28 January 2016

The monthly Darwinia contest rewarding DARWIN providers is now just over 1 year old.

1 year is early days in the bigger scheme of things, but long enough to reflect on pros and cons, and respond to feedback – both positive and negative – received from fellow users (and non-users).

So – what’s the verdict thus far? Should Darwinia continue going forward? What changes have been done, and ought to be expected going forward?

Here’s our take – we sincerely hope you’ll also give us an opinion!

Darwinian purpose

Darwinex’s mission is to democratise financial markets. We believe empowering the crowd is a cause worth backing, and a win-win for (most of 🙂 society.

 

(R)evolution at work!

We won’t get there without changing trader mentality. Far too many traders blow their (Darwinex and other brokers’) accounts not because their strategies are bad – but by trading with very high VaR. We’re convinced that there is a better leverage – investor leverage. That’s the thinking behind listing DARWINs at the DARWIN Exchange.

Further,  analysing over 20.000 track records has highlighted that strategies exhibiting high grades for certain attributes (Experience, Risk Management, Consistency, Timing, Performance and Scalability) seem to, over a statistically significant sample of strategies and time, exhibit better returns than those who don’t.

With that information & algorithms available to us, we thought – what better way to prove to traders that Darwinex breathes evolution – than putting our money where our mouth is?

Thus Darwinia was born, serving three core purposes:

  • Helping existing customers: focussing on improving IA grades helps acquire healthy habits. These in turn help them live, and learn, for longer. This is good for them, for us and for future investors
  • Attract talented traders: which other broker backs their customers with capital, paying 20% success fees?
  • Test if/how strategies react upon receiving investor capital. Does investor backing condition their trading? This is something we’re keeping a close eye one as we gear up the DARWIN investor platform with AuM

On the plus side

1 year ago, as a broker (in addition to an asset manager) we wondered how to grow. The most obvious option was to advertise.

IG spends GBP 900 to 1100 for each first trade

IG spends GBP 900 to 1100 for each first trade

Then we thought: rather than advertise to trade against customers (the way most do)… wouldn’t it make more sense to deploy capital with our customers? Wouldn’t this prove to sceptics – even if still at a relatively modest scale – that we mean business when we talk about investors backing them?

From a Public Relations stand-point – Darwinia is a good story. The Darwinia URL is one of the most recurring visits on all of Darwinex 🙂

As a by-product, it has resulted in IPOs of ever more investable DARWINs that we “cherry picked” from other brokers around the world – which is just bonus 🙂

It’s also been great in testing the investor platform and DARWIN scalability by trading medium AuM sizes with some of the more leveraged DARWINs. We’ve learnt valuable lessons when it comes to optimising investor execution which will come in handier as AuM in the platform mount.

Scope for Improvement

Not all PR has been good. Somehow, we gave the impression that Darwinia is Darwinex’s way to implicitly recommend which traders investors ought to back … which was NOT the point.

Firstly, because as a matter of principle, we’re a neutral venue. All we’re trying to do with levels / Darwinia etc. is improve the quality of DARWINs on offer, for everyone’s sake. This does somewhat break our neutrality –  but we think investors appreciate that trying to improve what’s on offer is a win-win for all involved. We just wouldn’t be credible if we didn’t invest ourselves.

Secondly, because as explained above Darwinia is partially a Public Relations exercise.

And thirdly, because investing in Darwinia winners  is NOT necessarily the best way to make the most out of DARWINs. Don’t get this wrong, we stand by the power of the diagnostic algorithms over a statistically significant sample of strategies and time. 

The question is: is a 1 month end-of-month snapshot of the top 20 strategies statistically significant? Is the difference between number 21 and number 12 so big as to justify picking one over the other because it happened to be on top at the cut-off time? Is the difference between 1 and 21 so big that it warrants an all or nothing outcome? Are there enough investable DARWINs at Darwinex to guarantee that the best 20 on any given end-of-month will be good enough over 6 months?

These, and other thoughts were what made us change Darwinia from:

  1. Cash-prize only (remember, initially, we couldn’t do capital allocations as the investor platform wasn’t ready!)
  2. Cash + Invested Capital: this had the downside that some cash winners got paid more up-front cash than DARWINs delivering performance over 6 months
  3. Invested Capital only: which is our preferred long term option, as it’s aligned with the core “trade as a fund manager” educational message & purpose

So overall, we need to communicate better.

More investable traders are welcome, too. There’s still not enough “depth of bench” to guarantee that all Darwinia prize winners will yield 6 month returns – even if this wasn’t an isn’t our goal, as discussed above… which is just as well.

Darwinex has other means to generate ROI from Darwinia (as a broker!) not available to investors. Plus there’s product improvements on their way for investors to make the most of the algorithms… but more on that on this webinar.

Your take?

Anything else you feel belongs in this post? What can we do to communicate Darwinia better? Which changes would make it “fairer”?

Any thoughts highly welcome!!!

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.