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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

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.

Darwinex at Forex Day 2017

19 June 2017

In what is becoming a tradition, this year we again were in attendance at The ForexDay on 9th-10th June in Madrid. As in previous years, the event lasted for two days: on the first day (Friday 9th June), the organisers gave a trading course (for a fee) which ended with an international trading contest. On […]

In what is becoming a tradition, this year we again were in attendance at The ForexDay on 9th-10th June in Madrid.

As in previous years, the event lasted for two days: on the first day (Friday 9th June), the organisers gave a trading course (for a fee) which ended with an international trading contest. On the second day (Saturday 10th June), there were presentations about trading on two stages in the Official College of Architexts in Madrid, Spain (you can see the event programme here).

International trading contest (9th June)

This year, the international trading contest participants were Rob Hoffman, Davide Biocchi and Tarek Elmarhri. As well as being a great trader, Tarek is the Darwinex Ambassador for France, so you can imagine who we were rooting for…and as the good trader that he is there are no prizes for guessing who won 😉

And the winner is… Tarek, of course!You can see an interview with Tarek here (apologies for the poor sound quality).

General Public Event (10th June)

On Saturday, at 9 am, the doors opened for the general public event.  As in previous years, we were surprised by the amount of people queuing at the door to attend the event.  From Darwinex we want to congratulate the organisers for how well everything turned out.

The Trading Conferences soon got underway on the stages, including the conference that we had prepared.

Darwinex Conference (Expo Stage)

At 12.30 am the first Darwinex conference took place: ‘Independent trader experiences – their day-to-day trading’, in the which Mallku, Riddick and Mimago shared their experiences as traders (with their proven track records).

Mallku, Riddick and Mimago on stage

 

As can be seen in the photos, the room was filled to capacity… we actually had to leave the stage without answering all the questions so the next speakers did not run out of time! You can see a video of the conference here (NB: the conference starts at 2:19.40).

At Darwinex, we wish to thank all those in attendance because it was a pleasure to have you all there!

Darwinex Conference (International  Stage)

Following on the success of the conference in the Expo Stage, we then held another Darwinex Conference in the Sala Panorámica. As the in previous conference, the theme was ‘Independent trader experiences – their day-to-day trading’. This time the guest speakers were Integracore2, VPSEnry, ChicksFX and Mallku. Once again the Conference was a success and many of those in the audience approached out stand to ask us about Darwinex, DARWINs, DarwinIA, etc.

You can watch a recording of the conference here.

Also, you can watch interview carried out by ForexDay with some of the participants on their Youtube channel.

Event Highlights

Having come this far, it is fair to say that the event was a success: Tarek won the international trading contest, the conferences offered by our traders filled to capacity both halls (the conferences ended up with standing room only due to such a high attendance!)

Nevertheless, this does not explain why the event was such a big success for us: what really put such a big smile on our faces that day was all the traders and investors that visited us at our stand: as well as Mallku, Riddick, Mimago, Integracore2, VPSEnry and ChicksFX, who were in attendance as guest speakers, we had the enormous please of speaking with Yofxtrader, ElQuantitativo, Chema01, MCFD, Pedroml and GlobalMarkets, amongst many others. We offer you all our most sincere thanks. We attended ForexDay in 2013 as guest and we never could have imagined the amount of great traders (and great people) that would end up becoming part of this traders’ movement a few years later… and the best is yet to come!

SEE YOU NEXT TIME!

PS: According to our friends the best part of the day were the post-event drinks! 

Volatility expected due to UK general election

7 June 2017

Please note that high volatility is expected on GBP, EUR, CHF pairs as well as on UK and European indices on Thursday (8 June 2017) due to the UK general election. Also, liquidity providers are expected to significantly limit their liquidity, which can give rise to abnormal widening of spreads, potential increased amounts of slippage on executed orders and, eventually, […]

Please note that high volatility is expected on GBP, EUR, CHF pairs as well as on UK and European indices on Thursday (8 June 2017) due to the UK general election. Also, liquidity providers are expected to significantly limit their liquidity, which can give rise to abnormal widening of spreads, potential increased amounts of slippage on executed orders and, eventually, gaps in the charts due to the low liquidity available. If you plan to keep open trades on Thursday, please make sure you post margin / equity in your account ahead as volatility is expected to increase, especially around market close at 22:00 (UK time) on Thursday.

We reserve the right to change our margin requirements as we move closer to the election / depending on the outcome. Should we decide to introduce any changes to our trading conditions, we’ll endeavour to contact you via email, MT4 or by changes made to our blog / website ASAP.

D-Leverage & Risk Manager

Further, our Risk Manager will be more restrictive when replicating DARWINS’ trades to protect investors from increased volatility owed to the election.

As always, please do not hesitate to contact us at info@darwinex.com for support.

And the DarwinIA winners are…

5 June 2017

The May 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 May’s notional allocation 1st XIN € 300,000.00 2nd GTD € 250,000.00 3rd DZT € 210,000.00 4th WEF € 170,000.00 5th KVL € 150,000.00 6th PUZ € […]

The May 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 May’s notional allocation
1st XIN € 300,000.00
2nd GTD € 250,000.00
3rd DZT € 210,000.00
4th WEF € 170,000.00
5th KVL € 150,000.00
6th PUZ € 140,000.00
7th SVI € 130,000.00
8th ERQ € 120,000.00
9th NTI € 110,000.00
10th TOP € 110,000.00
11th OLT € 110,000.00
12th LVS € 100,000.00
13th RWL € 100,000.00
14th VTJ € 100,000.00
15th CLA € 90,000.00
16th VQG € 90,000.00
17th STM € 90,000.00
18th YMK € 80,000.00
19th THA € 80,000.00
20th MLS € 80,000.00
21st YHN € 70,000.00
22nd FTA € 70,000.00
23rd WZG € 70,000.00
24th FCQ € 70,000.00
25th SSS € 60,000.00
26th MDI € 60,000.00
27th VLR € 60,000.00
28th NND € 60,000.00
29th QNR € 60,000.00
30th OPK € 60,000.00
31st UEI € 50,000.00
32nd JMW € 50,000.00
33rd KDU € 50,000.00
34th FTT € 50,000.00
35th DLF € 50,000.00
36th VHI € 50,000.00
37th RSR € 50,000.00
38th XGU € 40,000.00
39th VFL € 40,000.00
40th WPQ € 40,000.00
41st VQB € 40,000.00
42nd FGC € 40,000.00
43rd XXW € 40,000.00
44th CSP € 40,000.00
45th MRV € 30,000.00
46th XYP € 30,000.00
47th PFH € 30,000.00
48th RQH € 30,000.00

Darwinex Trading Hours for ucomping Bank Holiday in Australia (12 June 2017)

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 12 June 2017 (all times are in UK time).  Instrument Trading Hours  FX 22:05 Sun – 22:00 Mon   DARWINS 22:05 Sun – 22:00 Mon  COMMODITIES   Gold 23:00 Sun – 22:00 Mon Silver 23:00 Sun – 22:00 Mon Platinum 23:00 Sun – 22:00 Mon Palladium 23:00 Sun – 22:00 Mon US Crude 23:00 […]

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 12 June 2017 (all times are in UK time).

 Instrument Trading Hours
 FX 22:05 Sun – 22:00 Mon
  DARWINS 22:05 Sun – 22:00 Mon
 COMMODITIES  
Gold 23:00 Sun – 22:00 Mon
Silver 23:00 Sun – 22:00 Mon
Platinum 23:00 Sun – 22:00 Mon
Palladium 23:00 Sun – 22:00 Mon
US Crude 23:00 Sun – 22:00 Mon
Natural Gas 23:00 Sun – 22:00 Mon
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 08:00 – 19:00
Japan 225 23:00 Sun – 22:00 Mon
 UK 100 23:00 Sun – 22:00 Mon
 US SPX 500 23:00 Sun – 22:00 Mon
 US Tech 100 23:00 Sun – 22:00 Mon
Wall Street 30 23:00 Sun – 22:00 Mon
*Amended Darwinex trading hours.

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

And the DarwinIA winners are…

3 May 2017

The April 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 April notional allocation 1st XXW € 300,000.00 2nd DOF € 250,000.00 3rd DLF € 210,000.00 4th XFL € 170,000.00 5th JMW € 150,000.00 6th VNE € […]

The April 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 April notional allocation
1st XXW € 300,000.00
2nd DOF € 250,000.00
3rd DLF € 210,000.00
4th XFL € 170,000.00
5th JMW € 150,000.00
6th VNE € 140,000.00
7th CJN € 130,000.00
8th GPZ € 120,000.00
9th WIZ € 110,000.00
10th CLA € 110,000.00
11th SVI € 110,000.00
12th BFT € 100,000.00
13th BUE € 100,000.00
14th KVL € 100,000.00
15th QTN € 90,000.00
16th UEI € 90,000.00
17th SPI € 90,000.00
18th WFJ € 80,000.00
19th DNA € 80,000.00
20th YMK € 80,000.00
21st VTJ € 70,000.00
22nd PMZ € 70,000.00
23rd FSX € 70,000.00
24th XIN € 70,000.00
25th PGH € 60,000.00
26th OLT € 60,000.00
27th PIJ € 60,000.00
28th NTI € 60,000.00
29th DZL € 60,000.00
30th SSS € 60,000.00
31st ERQ € 50,000.00
32nd JKT € 50,000.00
33rd YYZ € 50,000.00
34th XGU € 50,000.00
35th GYL € 50,000.00
36th YVG € 50,000.00
37th CSP € 50,000.00
38th DZT € 40,000.00
39th LCA € 40,000.00
40th ADX € 40,000.00
41st CKV € 40,000.00
42nd THA € 40,000.00
43rd LSC € 40,000.00
44th RDD € 40,000.00
45th YZF € 30,000.00
46th VFL € 30,000.00
47th WPQ € 30,000.00
48th GPF € 30,000.00

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