trading capital

How Much Trading Capital Do You Need To Earn $100K A Year?

15 June 2018

In this article, we are going to make use of the professional trader’s calculator to find out how much capital you need to earn a 6-figure salary ($ 100,000). This may vary depending on your trading style, time horizon, leverage, the mathematical expectancy of your strategy but, above all, of an aspect that you may […]

Sharpe Ratio - Reliable Measure of Trading Strategy Performance?

Sharpe Ratio – A Reliable Measure of Performance?

8 March 2018

This post describes some of the shortcomings of the Sharpe Ratio, that render it a non-optimal tool for measuring the performance of a trading strategy. For your convenience, the remainder of this post is organized as follows: What is the Sharpe Ratio and what is it used for? Where and how does the Sharpe Ratio […]

Setting up a DARWIN Data Science Environment

How To Identify Overfit Trading Strategies

15 November 2017

In this post, we describe the main features and behaviours of overfit trading strategies, and the risks they pose to both traders and DARWIN investors. Overfit trading strategies typically perform well in backtesting environments, creating the illusion that they exploit the market inefficiency being targeted, really well. However, when deployed in a live trading environment, […]

MetaTrader 4 Backtesting

MetaTrader Backtesting – Best Practices for Algorithmic Traders

16 October 2017

MetaTrader backtesting can be tricky business for algorithmic traders. Follow these best practices to engineer robust, reliable trading strategies. Watch the full video tutorial here (36 minutes). Simulating a strategy’s historical performance correctly, increases the probability of it generalizing well to unseen market data in future. As such, it’s important that all backtesting be conducted […]

Trading is Intellectual Property: the proof is Coke!

10 February 2014

Ever wondered what the common ingredient to trades, trading algorithms and Coke is? Easy! Intellectual Property! Agree that speculation is an IP industry? To understand the full implications for your trading income, look no further than Coca Cola: a lesson on capturing – or missing out on – the dividends accruing to intellectual property. The […]

Inside Darwinex – your Trading Journal

14 August 2013

Imagine accessing the diary of a person you had never met before: wouldn’t this afford you in-depth insight into the personality traits of its owner? At Darwinex that got us thinking: how about a tool providing in-depth insight into any trading strategy? Thus came about the Trading Journal: it’s a visualisation containing all the trades in a trading strategy, providing insight […]

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71 % 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.