Life is about cycles: organisms are born, grow, (the fit ones!) breed and eventually – die.
Back in 2012, we started a “market where investors buy traders”… which put us in the market for a catchy name. As we attracted our first traders, we learnt that trading strategies are not unlike living organisms. Everyone tries. Some (very few) attract more than 1 investor, and all eventually mutate to adjust to the struggle. The fitter ones thrive, attract capital and copy-cats – until they eventually perish by shaping the very markets they trade.
That’s when the theory of evolution dawned on us – and we chose to evolve into Darwinix!
(No, Darwinix isn’t a typo. But, darwinix.com was taken, so we hit on Darwinex – which lent itself as an EXchange, but that’s for another blog-post).
The DARWIN Life cycle
A core tenet of the evolution by natural selection theory is that “more individuals are produced each generation that can survive more”.
Because this applies 1:1 to DARWINs, you might have asked our Customer Success Team to delete your DARWIN… Please note that :
- We do NOT delete DARWINs. Everyone, especially investors, has access to all listing and de-listed DARWINs by a provider,
- Providers may de-list DARWINs at their request. It’s your IP, and therefore your right to cease marketing it and close investment, however it’s history will still be visible
In this post we explain why transparency is a non-negotiable part of the Exchange ethos, and why we think it’s not only good for the DARWIN asset class, but for you, too.
We hope you’ll understand and look forward to your feedback!
A prerequisite for the Asset Class
We believe that listing trading strategies on Exchange is the best mechanism for them to reach asset class status.
Part of the reason that got the Wall Street system in trouble is lack of transparency. Asset managers silently shove underperforming funds under the carpet. Investment advisers thrive on conflicts of interest. The media selectively reports on what provides advertising revenue. All of which forces Main Street into financial decisions reached on partial (or worse, flawed) information. The pre-Internet financial system is so opaque, it’s vulnerable to disruption as more and more people realise the system is structurally flawed.
If we want investors in trading strategies, we need to clean up our act. Investors will never trust the asset class unless we stick with transparency… and this requires that all trading strategies, particularly the less successful ones remain public. Yes, it will make most of the DARWIN providers look bad… but that’s the prize for the consistent ones!
Markets rise and fall – how about you?
How is this any good for providers “tainted” by a strategy that hasn’t (yet) been able to shine?
Winning consistently is difficult. Like Evolution, it is a process, one that no trader starts out on the winning side.
What’s the closest path from losing to breaking even? Admit that you’re losing. Review your strategy. Identify what’s not working. Fix it. Repeat.
What’s the closest path from breaking-even to winning consistently? Review your strategy. Identify what’s not working. Repeat.
That’s how it works – in trading as in life. Fall, until you Rise. Defeats show you the path to success.
Now, put yourself in the shoes of a mature investor. Whom would you rather pick: a trader that started winning out of the blue? Or a track-record that’s been through a multi-year evolution from losing to breaking even, from breaking even to winning, from winning to smashing it?
For our part, we think the transparent evolution wins the day. We hope you’ll agree!