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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.

Snip20160118_16

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!

 

Last News

Amended Trading Hours due to US Memorial Day & UK Spring Bank Holiday (28 May 2018)

22 May 2018

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time). Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time).

Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market is closed (see amended trading hours in red below), the transaction will not be carried out immediately,  the investment will show up in your investor platform once it has been executed by our system when the index/commodity resumes trading on Monday night.

 Instrument Trading Hours
 FX  22:00 Sun – 22:00 Mon
  DARWINS  22.05 Sun – 22.00 Mon
 COMMODITIES
Gold* 23:00 Sun – 18:00 Mon
Silver* 23:00 Sun – 18:00 Mon
Platinum* 23:00 Sun – 18:00 Mon
Palladium* 23:00 Sun – 18:00 Mon
US Crude* 23:00 Sun – 17:45 Mon
Natural Gas* 23:00 Sun – 17:45 Mon
 INDICES
Australia 200 22:05 Sun – 22:00 Mon
 Europe 50 22:05 Sun – 22:00 Mon
France 40 22:05 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225*  22:05 Sun – 18:00 Mon 
 UK 100* Closed
 US SPX 500* 22:05 Sun – 18:00 Mon
 US Tech 100* 22:05 Sun – 18:00 Mon
Wall Street 30* 22:05 Sun – 18:00 Mon
*Amended Darwinex trading hours.

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

Amended trading hours during German Public Holiday (21 May 2018)

16 May 2018

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).  Instrument Trading Hours  FX  22.05 Sun – 22.00 Mon   DARWINs  22.05 Sun – 22.00 Mon  COMMODITIES 23.00 Sun – 22.00 Mon  INDICES Australia 200 22.05 Sun – 22.00 Mon  Europe 50 22.05 Sun […]

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX  22.05 Sun – 22.00 Mon
  DARWINs  22.05 Sun – 22.00 Mon
 COMMODITIES 23.00 Sun – 22.00 Mon
 INDICES
Australia 200 22.05 Sun – 22.00 Mon
 Europe 50 22.05 Sun – 22.00 Mon
France 40 22.05 Sun – 22.00 Mon
Germany 30* Closed
Spain 35 07:00 – 19:00
Japan 225  22.05 Sun – 22.00 Mon 
 UK 100 22.05 Sun – 22.00 Mon
 US SPX 500 22.05 Sun – 22.00 Mon
 US Tech 100 22.05 Sun – 22.00 Mon
Wall Street 30 22.05 Sun – 22.00 Mon
*Amended Darwinex trading hours.

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

Darwinex Trading Hours for UK Public Holiday (7 May 2018)

3 May 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (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 23:01 Sun – 21:59 Mon Silver 23:00 Sun – 22:00 Mon Platinum […]

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (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 23:01 Sun – 21:59 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  23:00 Sun – 22:00 Mon
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 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!

Darwinex amended trading hours (1 May 2018)

24 April 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Mon – 22:00 Tue   DARWINS 22:01 Mon – 22:00 Tue  COMMODITIES   Gold 23:01 Mon – 21:59 Tue Silver 23:00 Mon – 22:00 Tue Platinum 23:00 Mon – 22:00 Tue […]

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Mon – 22:00 Tue
  DARWINS 22:01 Mon – 22:00 Tue
 COMMODITIES  
Gold 23:01 Mon – 21:59 Tue
Silver 23:00 Mon – 22:00 Tue
Platinum 23:00 Mon – 22:00 Tue
Palladium 23:00 Mon – 22:00 Tue
US Crude 23:00 Mon – 22:00 Tue
Natural Gas 23:00 Mon – 22:00 Tue
 INDICES  
Australia 200 23:00 Mon – 22:00 Tue
 Europe 50* Closed
France 40* Closed
Germany 30* Closed
Spain 35* Closed
Japan 225 23:00 Mon – 22:00 Tue
UK 100 23:00 Mon – 22:00 Tue
 US SPX 500 23:00 Mon – 22:00 Tue
 US Tech 100 23:00 Mon – 22:00 Tue
Wall Street 30 23:00 Mon – 22:00 Tue
*Amended Darwinex trading hours.

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

Darwinex Trading Hours for ANZAC Day

19 April 2018

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Wed – 22:00 Thu   DARWINS 22:01 Wed – 22:00 Thu  COMMODITIES   Gold 23:01 Wed – 21:59 Thu Silver 23:00 Wed – 22:00 Thu Platinum 23:00 Wed – 22:00 Thu Palladium […]

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Wed – 22:00 Thu
  DARWINS 22:01 Wed – 22:00 Thu
 COMMODITIES  
Gold 23:01 Wed – 21:59 Thu
Silver 23:00 Wed – 22:00 Thu
Platinum 23:00 Wed – 22:00 Thu
Palladium 23:00 Wed – 22:00 Thu
US Crude 23:00 Wed – 22:00 Thu
Natural Gas 23:00 Wed – 22:00 Thu
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Wed – 22:00 Thu
France 40 23:00 Wed – 22:00 Thu
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225 23:00 Wed – 22:00 Thu
 UK 100 23:00 Wed – 22:00 Thu
 US SPX 500 23:00 Wed – 22:00 Thu
 US Tech 100 23:00 Wed – 22:00 Thu
Wall Street 30 23:00 Wed – 22:00 Thu
*Amended Darwinex trading hours.

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

Change in bank account details for GBP deposits

6 April 2018

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part. Nevertheless, due to the fact that […]

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part.

Nevertheless, due to the fact that the bank account details used up until now for GBP deposits have been changed, if you wish to make a deposit via bank transfer, make sure to initiate the deposit from your Wallet in order to receive the new bank account details per email. This should be the way you always initiate a deposit as opposed to copying a previous deposit’s data.

We remain at your disposal at info@darwinex.com