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Changes to Experience & Performance attributes

18 January 2016

The DARWIN Exchange (Darwinex) lists DARWINs that investors purchase from independent traders. To assist investors, we grade DARWINs for investable attributes (IAs).

But: DARWINs are (different leverage) transformations of their underlying strategies. So… what are the IA grades for, the DARWIN, or its underlying strategy?

The logical answer would be – the DARWIN! Then again, remember Tradeslide and the TS Score? Way back when, we were a site that diagnosed trading strategies, and DARWINs didn’t exist. Because of that legacy, up to last week, IA grades – somewhat inconsistently – were for the underlying strategy, not its DARWIN.

For the Consistency & Timing IA grades this is irrelevant: a strategy’s and its DARWIN TP / SL levels and trade timing are identical. For other IAs DARWIN & underlying strategy differ.

To side with logic, going forward IAs will grade the DARWIN – not the underlying strategy. The rest of this post outlines the implications for the Experience and Performance IA.

1. Changes to Experience Attribute

As you may recall, the Experience IA measures statistical representativeness. One core input into it is, amongst others, D-Leverage.

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To rate the DARWIN’s statistical representativeness (instead of the underlying strategy’s), the Experience IA now feeds off DARWIN adjusted D-Leverage, as opposed to  underlying strategy’s D-Leverage. After this change, which track record is more statistically representative, a strategy’s, or its DARWIN’s?

To reach the answer, think this through. All other things being equal, which strategy has more statistical significance?:

  1. Strategy 1: Take 100 trades, one where you leverage 200:1 for 5 days, and 99 where you leverage 1:1 for 1 hour
  2. DARWIN 1: Strategy’s 1 DARWIN, as offered to investors

Strategy 1 is (probably) very driven by the outcome of the 5-day 200:1 trade. To protect investors in DARWIN 1,  risk management algos would not fully replicate the 200:1 leverage trade to begin with. Moreover, as the 5 days progressed, they would gradually close out the trade to control leverage over time. This “smoothing out” would increase DARWIN 1’s statistical significance above Strategy 1, by “allocating” performance (more) evenly across the remaining 99 trades.

DARWINs accrue Experience at least as fast as their underlying Strategy, and generally faster. Going forward, therefore, users should rejoice that DARWIN Experience grades will grow faster – precisely because it rates DARWINs, not underlying strategies. Note that investability doesn’t change one bit – it’s just that the grade refers now to something else.

2. Changes to the Performance Attribute

Similarly, the Performance Investable Attribute grades the output DARWIN’s performance (i.e. the performance on 20% VaR after algos manage D-Leverage independently from the underlying strategy).

As you may recall, the Performance IA used to include a Leverage Illusion grade in addition to the Monkey Test. Their average grade was the strategy’s 0-10 Performance score.

Because only adjusted D-Leverage drives DARWIN performance , the “with and without leverage” Leverage Illusion grade is now redundant.

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All DARWIN providers need to do now is beat trading monkeys that use their same D-leverage!

Think this makes beating the monkeys any easier? Think again 🙂

3. Changes to other Attributes

Evolution is a process,  so it doesn’t stop here! We’ll keep working hard on algorithms and ratings.

Questions on the changes or anything else Darwinex?

E-mail info@darwinex.com, we’ll be glad to help out!

 

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NextEra Energy Stock Split 4:1

19 October 2020

The NextEra Energy stock split is approaching. At Darwinex we will apply the stock split on October 27th.

The NextEra Energy stock split is approaching. $NEE shares will be split 4-for-1. The number of shares will be multiplied by 4 and share prices divided by this same value.

At Darwinex we will apply the stock split on Tuesday October 27th at market open.

In live accounts we will adjust open position to the split without the need to close and reopen trades. Pending orders will be cancelled. In MT5, the hedged positions will be closed and the split will be applied to the resulting net position.

In demo accounts we will close all open positions in $NEE on Monday afternoon. Pending orders will be cancelled.

$NEE stocks will be available for trading from Tuesday, October 27th, at the post-split price.

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

End of Daylight Saving Time in Europe (October 25th 2020)

Please note that Daylight Saving Time (DST) ends in Europe on Sunday October 25th 2020 but our MT4 nd MT5 servers’ time is not changing until Sunday November 1st 2020 when DST ends in the US.

Please note that Daylight Saving Time (DST) ends in Europe on Sunday October 25th 2020 but our MT4 nd MT5 servers’ time is not changing until Sunday November 1st 2020 when DST ends in the US.

This means that there will be 1 week (October 25th through November 1st) where, for European users, most markets will open 1 hour earlier than during European DST, e.g. FX market will open at 21:04:01 GMT.

Instrument Trading Hours (GMT)
FX 21:05 Sun – 20:55 Fri (except 20:59:50 – 21:04:01 daily) 
DARWINS 21:05 Sun – 20:55 Fri (except 20:59 – 21:05 daily)
COMM.  
XAUUSD 22:01 Sun – 20:55 Fri (except 20:59 – 22:01 daily)
XAGUSD 22:00:01 Sun – 20:55 Fri (except 20:59:50 – 22:00:01 daily)
XTIUSD 22:00 Sun – 20:55 Fri (except 21:00:01 – 22:00 daily)
XNGUSD 22:00 Sun – 20:55 Fri (except 21:00:01 – 22:00 daily)
INDICES  
AUS200 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
STOXX50 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
FCHI40 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
GDAXI 01:30 – 21:00 (Mon – Fri)
SPA35 07:00 – 19:00 (Mon – Fri)
J225 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
UK100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
SPX500 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
NDX 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
WS30 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US STOCKS 13:31 -19:59 (Mon – Fri)

As always, at info@darwinex.com we’ll be glad to assist you with any question you may have!

apalancamiento esma

Margin increase for EURGBP and EURJPY this Friday (Professional Clients)

14 October 2020

Our margin requirement for the EURGBP and EURJPY pairs for Professional Clients is changing this Friday, October 16th 2020, around 17:00 BST.

Our margin requirement for the EURGBP and EURJPY pairs for Professional Clients is changing this Friday, October 16th 2020, around 17:00 BST.

The measure is due to the recent increase in market volatility.

The new margin requirement will be 1% for both EURGBP and EURJPY, replacing the previous 0.5%.

It will remain in place until further notice and will affect both existing and new positions.

Kindly make sure you have enough available margin and equity in your account for the new margin level.

Need help? Please don’t hesitate to contact us at info@darwinex.com.

apalancamiento esma

Discontinuation of cryptocurrencies from 2021

15 September 2020

From 2021 Darwinex will no longer offer cryptocurrencies. As a first step, on Monday 21 September we will deactivate the creation of new accounts.

From 2021 Darwinex will no longer offer cryptocurrencies. Their low demand from our customer base does not justify the regulatory risk involved.

As a first step towards the discontinuation of cryptocurrencies, on Monday 21 September we will deactivate the creation of new accounts.

The cryptocurrency accounts already opened will be able to continue operating until the end of the year.

Amended Trading Hours U.S. Labor Day 2020

27 August 2020

Please note the amended Darwinex trading hours for the upcoming U.S. Labor Day on September 7th, 2020. All times are UTC.

Please note the amended Darwinex trading hours for the upcoming U.S. Labor Day on September 7th, 2020. All times are UTC.

Labor Day 2020

For your convenience:

– Normal DARWIN trading hours

– Normal FX/CFD trading hours

– Annual Calendar of Amended Darwinex Trading Hours

Apple And Tesla Stock Splits

25 August 2020

Tesla’s and Apple’s stock splits are approaching. As of August 31st, Tesla shares will be split 5-for-1, and Apple’s 4-for-1. Existing shares of each company will be multiplied by 5 and 4, respectively, and their share prices divided by those same values. At Darwinex we will apply the stock split on the weekend of August […]

Tesla’s and Apple’s stock splits are approaching. As of August 31st, Tesla shares will be split 5-for-1, and Apple’s 4-for-1. Existing shares of each company will be multiplied by 5 and 4, respectively, and their share prices divided by those same values.

At Darwinex we will apply the stock split on the weekend of August 29th.

In live accounts we will adjust open positions in $AAPL and $TSLA to the split without the need to close and reopen trades. Pending orders will be cancelled.

In demo accounts, however, we will close all open positions in $AAPL and $TSLA on Friday afternoon. Pending orders will be cancelled.

Both $AAPL and $TSLA will be available for trading from Monday, August 31st, at post-split prices.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.