On July 19th, 2018 we held the second Ask Me Anything (AMA) session at Darwinex. Founders Juan and Javier Colón answered to questions from Darwinex users.
Here’s the list of questions and when they appear in the recording so you can jump directly to the ones that interest you.
Below the questions you’ll find the recording in both video and audio formats.
1. Ola Juan. Firstly let me express how happy I am that Darwinex exists, giving independent traders a chance to realize their dreams of trading OPM for a living. My concern however is that like most good things, it may not last and for me the biggest risk of this is if you decide to sell the company. Of course, its your company and you can do with it what you like. It would just be good to know that if you were to sell that you would be ensuring a like-minded party to sell to and not someone who wants to rip the concept up! – 1:21
2. How will leverage change under ESMA? – 7:05
3. Do we need share profit with introducers to investors. One or two level. and 1:30+? – 8:13
4. Are you going to add e-minis trading in the near future? – 10:05
5. How to keep account a long term? – 10:46
6. From an investor perspective (I run a fund fyi) do you intend to improve the functionality of the platform to accommodate professional portfolio managers? Currently the platform is inadequate for serious money. It is certainly suitable for a private investor though. Also should you go down that road will you then allow professionally run portfolios to be traded? Have their own ranking and open them up to capital? Doing this will open up a whole new world of capital that will aggregate the successful traders. – 11:02
7. How does the potential loss of the EU financial services passport affect Darwinex? – 13:40
8. Hi, could you please let me know whether you are planning to expand to Futures market one day? Thank you. – 14:21
9. Regarding ESMA regulation, can’t Darwinex take a clue from other brokers by allowing trades opened before 1st August to maintain the old leverage. A lot of traders will lose significant amount of money by abruptly closing trades just to be within the new margin if this is not allowed. Please a very important note is that traders have already mapped out the money they can trade in Forex and asking traders to deposit more money in order to maintain the margin is never the right thing to do. Before this is being doubted, I submitted an evidence to your customer team on this and can do so again. – 16:03
10. What happened to DWEX? – 20:18
11. I’ve seen several migrated DARWINs die after a few months in Darwinex. Why not penalize D-score of migrated DARWINs during the first few months until sure they get well adapted to Darwinex? – 24:19
12. Do you happen to know whether it’s migrated or native DARWINs that work better? – 27:56
13. Also, when migrating a trading strategy to Darwinex, what should the trader take care of so that there are no ugly surprises with the DARWIN that gets created out of that migrated strategy? – 32:30
14. I’ve heard that when a DARWIN is good and the trader does a good job managing risk, no stop-loss should be used with it. Do you agree with this statement? Does Darwinex use stop-losses when prop investing? – 33:10
15. How many DARWINs should investors include into their portfolio as a minimum? – 37:52
16. Finally, there are moments when supposedly uncorrelated DARWINs (according to correlation table) seem like having a 0.99 correlation. What can I do, apart from checking the correlation table, in order to diversify my portfolio? – 39:00
17. I don’t know whether ESMA’s intention is to wipe out brokers from the market (so that only the biggest prevail) or help traders. I saw data that 80% os traders lose with current leverages. With the new ones, do they pretend to help traders? – 43:36
18. Are you looking into providing insurance for investors and traders who invest or have trading accounts above GBP 50 000. I see this as a major hurdle that needs to be resolved so that larger investors are attracted to the platform. I for one will invest a couple of hundred thousand GBP if this deposit insurance was in place. If you are looking into providing such depositor insurance, how much will you cover and when do you expect to offer it to customers. Kind regards. Iefan Blake – 44:33
19. Are you planing new withdrawal-deposit methods in near future? – 45:08
From minute 46:00, Juan and Javi comments on the open letter from pro users published on the community forum.