In this post, we present the Darwinex Laboratory’s (DarwinexLabs) latest accomplishment: DARWIN $DWF
One of the aims of this engineering effort, is to generate additional Darwinian Dividends to award via DarwinIA to the month’s best traders.
In keeping with its motto, Darwinex Labs continues its search for community-driven alpha, harvesting value from the Darwinex Trader Collective to create investable trading strategies FOR the collective.
So without further ado, let’s put the petri dishes, microtiter plates, microscopes, centrifuges, and test tubes to one side, and dive straight in 🙂
Presenting The New Community DARWIN: $DWF
Note: This DARWIN has a limited live track record – please exercise caution.
Before we elaborate more on $DWF, we encourage the DARWIN Investor community to please exercise caution.
This is because in engineering the concept of DARWIN $DWF, only data since the beginning of 2015 has been utilized.
The listed DARWIN itself has a live track record since January, 2018.
Despite its short time in live existence and the caution we’ve encouraged you to exercise, we’ve decided to list $DWF on the DARWIN Exchange because of the fundamental strength of the logic behind it.
$DWF vs $DWC: Long-term Returns vs Hedging
Just like its active predecessor – $DWC – DARWIN $DWF takes trading decisions based on the exposure of the Darwinex Trader Collective in Forex.
Important Note: To be clear, Darwinex NEVER acts as a counterparty with the DARWINs from DarwinexLabs. They are investable assets listed on the Exchange, like any other DARWIN.
Instead of being a hedging asset like $DWC, DARWIN $DWF aims to achieve long-term positive returns.
The algorithm has been designed such that $DWF adapts to temporal increases in data available to Darwinex.
Any and all improvements to the algorithm will be implemented gradually over time, as more data becomes available.
DWF vs. DWC: + CLOSE STRATEGY (Cs) + PERFORMANCE (PF) – CAPACITY (Cp) – LOSS AVERSION (La)
The DARWIN DWF owes its existence to DWC because they share the same DNA or genetic code.
However, in the laboratory, we have gone ahead to make some changes to improve the Close Strategy (Cs) of DWC, which currently has a score lower than 5.
Both the Close Strategy (Cs), as well as the Performance (Pf), prove to yield promising results in the backtest, at the cost of reducing the scores for Capacity (Cp) and Loss Aversion (La).
DWF vs DWC CORRELATION
Since the logic of both DARWINs is similar, the correlation between them is likely to be high.
We hope that $DWF has an upwards bias, unlike $DWC which behaves like a hedging asset.
Where can you find it?
All the Community DARWINs reside in the ‘’Community DARWINs’’ filter.
What are your thoughts regarding $DWF?