how good traders use leverage

How do good traders use leverage? – Part I

25 May 2018

Good traders know that no more than between 5:1 and 10:1 D leverage is required to achieve 20% to 60% returns per annum, at 10% VaR. Background In a recent Spanish podcast episode, Darwinex CEO Juan Colón shed light on behaviours of successful DARWIN providers (traders) at Darwinex. Insights shared were as a result of […]

Hidden Markov Models & Regime Change: S&P500

24 April 2017

In this post, we will employ a statistical time series approach using Hidden Markov Models (HMM), to firstly obtain visual evidence of regime change in the S&P500. Detecting significant, unforeseen changes in underlying market conditions (termed “market regimes“) is one of the greatest challenges faced by algorithmic traders today. It is therefore critical that traders […]

Quantitative Trader

Why Quantitative? – Serious Algorithmic Trading Series (Part 2)

20 March 2017

In case you haven’t already, you may wish to read the first two posts of the Serious Algorithmic Trading Series, here and here. Many individual traders will often hear the term “Quant” and may visualize either: A sharply dressed City trader working in a hedge fund, sat in front of his Bloomberg or Thomson Reuters […]

Advantages of Trading $DWC vs. Other Listed Assets

Serious Algorithmic Trading Series – Part 1

16 March 2017

Can individual traders really compete with large institutions?   This post is the first of a four-part “Serious Algorithmic Trading” series, introduced here. A trader will at one point or another, question how practical it is to compete with large institutions in the same markets. After all, it is “big money” at the end of […]

Risk Management – The Single Most Important Investable Attribute

11 December 2014

Risk management is the single most important investable attribute. Your grade reflects the trouble our algorithms have in transforming your strategy into an investable DARWIN. If you hold your Value at Risk constant, ideally by placing all your positions in a tight leverage range, we don’t intervene and grant you a 10/10. The moment your […]

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.