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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 into its main attributes – particularly its Risk Management – at a glance.

This is what it looks like (just click the image to enlarge it!) and these are its elements.

tradingjournal

Return:

Measures the strategy’s performance from inception, tracking the value of balance every time a trade is opened or closed (i.e. when a new position starts). The performance calculation takes into account (i) the performance of a trade when it has been closed AND (ii) the performance for the trades that remain open when a trade has been closed.

Range Return:

Shows a strategy’s performance over any user-selected period – offering any potential investor a way to track performance for any period of interest… which comes in handy since recent performance mostly differs from performance from inception!

For instance, a strategy initially losing 50%, the recovering to 100% of the initial deposit could yield 100% performance to investors entering at the lowest point! Range Return is designed specifically to get a more accurate impression of a trader’s performance.

D Leverage:

D Leverage is a measure of risk. It tracks the risk incurred by each position in a strategy in terms of average EURUSD volatility. What does this mean?

  • A EURUSD trade with 1:1 utilised leverage has a D Leverage of around 1
  • A EURJPY trade with 1:1  utilised leverage has usually a D Leverage higher than 1 – this is because the EURJPY is more volatile than the EURUSD in average – and thus riskier
  • What is TS Leverage for simultaneous trades in multiple assets? This is where it shines: D Leverage of 6 means “6 times as risky as the EURUSD over the period”, etc. It captures hedging effects, i.e. two highly leveraged trades in negatively correlated assets can result in a low risk trade

What does a constant evolution of D Leverage say about a strategy? The closer a trader sticks to a D Leverage, the better – this evidences that any positive returns are not engineered by leverage illusions (martingales), where winning trades randomly deploy higher leverage than losing ones.

The D Leverage chart on the Trading Journal uncovers strategies deceiving inexpert investors through such illusions: beware of strategies where D Leverage increases on losing positions.

Trading Journal - Martingale

Open trades:

Tracks the number of simultaneous open trades in a strategy. Combined with D Leverage, it is proof of a trader’s skill at keeping risk constant: good traders open new trades without affecting their D Leverage. In short, this is a powerful tool that evidences a trader’s ability to cover risk by opening new trades (hedging). Beware of strategies in which D Leverage increases with new trades: this is conclusive evidence of the presence of leverage  illusions (martingales).

D Score:

Tracks the evolution of a trader’s D Score. Our goal is to maximise the correlation between a strategy’s current D Score and future returns: our success will empower traders with a high D Score to investor capital!

For now, we offer users a predictive tool of immense potential: the evolution of D Score. Please remember that the D Score is driven by performance and skill: expert traders must prove both to be worthy of investors’ capital.

Distribution of trades:

This chart is useful to know at a glance what kind of strategy a trader uses: frequency of trades, assets traded, duration of trades and simultaneous trades.

It evidences whenever a trader has changed his strategy and is also helpful to find out whether a trader is disciplined when following a strategy.

The trading strategy below shows a good discipline. Note how this trader started trading short trades and kept the number of open trades at a time consistent. Note also how his strategy changed: he increased the number of trades open at a time, being the duration of the trades longer.

Disciplined change of strategy

In contrast to the disciplined strategy above, the strategy below shows no discipline at all. The number of open trades at a time varies constantly and the duration of the trades varies as well…you can tell at a glance there is no defined pattern.

Trading journal - Lack of discipline or strategy

Do you have any question about the Trading Journal? Feel free to e-mail info@darwinex.com, we’d love to improve on the above intro.

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UK Parliament Vote on EU Withdrawal Bill (11 December 2018)

9 December 2018

We would like to remind you that the UK Parliament will vote on the EU Withdrawal Bill on 11th December 2018. There is a high degree of uncertainty as to the outcome of the vote and all GBP currency crosses are likely to experience significant volatility with increased risk of market gaps. It is important that you […]

We would like to remind you that the UK Parliament will vote on the EU Withdrawal Bill on 11th December 2018.

There is a high degree of uncertainty as to the outcome of the vote and all GBP currency crosses are likely to experience significant volatility with increased risk of market gaps.

It is important that you have sufficient margin coverage and are comfortable with the exposure on your account as our margin requirements may change going into the vote or depending on the outcome of the vote.

Please feel free to contact us at info@darwinex.com should you need assistance in this regard.

Amended Trading Hours US National Day of Mourning on December 5th 2018

4 December 2018

Please note the amended Darwinex trading hours for the upcoming US National Day of Mourning on December 5th 2018. All times are in UK (GMT+0) time.    Instrument December 5th 2018  INDICES    US SPX 500 23:00 Tue – 14:45 Wed  US Tech 100 23:00 Tue – 14:45 Wed Wall Street 30 23:00 Tue – 14:45 Wed […]

Please note the amended Darwinex trading hours for the upcoming US National Day of Mourning on December 5th 2018. All times are in UK (GMT+0) time.


 

 Instrument December 5th 2018
 INDICES  
 US SPX 500 23:00 Tue – 14:45 Wed
 US Tech 100 23:00 Tue – 14:45 Wed
Wall Street 30 23:00 Tue – 14:45 Wed
 STOCKS  
US Stocks CLOSED

 


The rest of the assets will trade according to their usual trading time. As always, at info@darwinex.com we’ll be happy to assist you!

Amended Trading Hours for the 2018 US Thanksgiving Holidays (Nov. 22nd and 23rd)

20 November 2018

Please note the amended Darwinex trading hours for the upcoming US Thanksgiving holiday period on 22nd and 23rd of November 2018. All times are in UK (GMT+0) time.    Instrument November 22nd 2018 November 23rd 2018  COMMODITIES     Gold 23:01 Wed – 17:59 Thu 23:01 Thu – 18:40 Fri Silver 23:00 Wed – 17:59 Thu 23:00 Thu – […]

Please note the amended Darwinex trading hours for the upcoming US Thanksgiving holiday period on 22nd and 23rd of November 2018. All times are in UK (GMT+0) time.

 


 Instrument November 22nd 2018 November 23rd 2018
 COMMODITIES    
Gold 23:01 Wed – 17:59 Thu 23:01 Thu – 18:40 Fri
Silver 23:00 Wed – 17:59 Thu 23:00 Thu – 18:40 Fri
Platinum 23:00 Wed – 17:59 Thu 23:00 Thu – 18:40 Fri
Palladium 23:00 Wed – 17:59 Thu 23:00 Thu – 18:40 Fri
US Crude 23:00 Wed – 17:44 Thu 23:00 Thu – 17:25 Fri
Natural Gas 23:00 Wed – 17:44 Thu 23:00 Thu – 17:25 Fri
 INDICES    
Japan 225 23:00 Wed – 17:59 Thu  23:00 Thu – 18:10 Fri 
 US SPX 500 23:00 Wed – 17:59 Thu 23:00 Thu – 18:10 Fri 
 US Tech 100 23:00 Wed – 17:59 Thu 23:00 Thu – 18:10 Fri 
Wall Street 30 23:00 Wed – 17:59 Thu 23:00 Thu – 18:10 Fri 
 STOCKS    
US Stocks CLOSED 14:31 Fri – 17:59 Fri 

 

The rest of the assets will trade according to their usual trading time. As always, at info@darwinex.com we’ll be happy to assist you!

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Bitcoin Cash (XBNUSD) trading suspended until further notice

7 November 2018

The BCH fork on November 15th may create a split in the BCH instrument resulting in two currencies, BCH and BSV. Due to the uncertainly around this event, at Darwinex we’ve decided to suspend opening of any new XBNUSD trades with immediate effect.

As traders trading cryptocurrency CFDs sure know, the BCH fork on November 15th may create a split in the BCH instrument (XBNUSD as provided by our liquidity provider LMAX) resulting in two currencies, BCH and BSV.

Due to the uncertainly around this event, at Darwinex we’ve decided to suspend opening of any new XBNUSD trades with immediate effect.

We’ll contact Darwinex traders with open positions in XBNUSD and recommend them to close their positions because as of November 15th our liquidity provider will stop offering liquidity for XBNUSD for an unknown period of time.

For any questions, please contact us at info@darwinex.com.

End of Daylight Saving Time in Europe (October 28th 2018)

22 October 2018

Please note that Daylight Saving Time ends in Europe on Sunday October 28th 2018 but our MT4 nd MT5 servers’ time is NOT changing until Sunday November 4th 2018 (when Daylight Saving Time ends in the US). This means that there will be 1 week (October 28th through November 2nd) where some markets will open 1 hour earlier than […]

Please note that Daylight Saving Time ends in Europe on Sunday October 28th 2018 but our MT4 nd MT5 servers’ time is NOT changing until Sunday November 4th 2018 (when Daylight Saving Time ends in the US).

This means that there will be 1 week (October 28th through November 2nd) where some markets will open 1 hour earlier than during European Daylight Saving Time (i.e. FX market will open at 21:01 GMT; commodities will open at 22:01 GMT, etc.).

 

Instrument Trading Hours in GMT
FX 21:05 Sun – 20:55 Fri (except 21:00 – 21:01 daily) 
DARWINS 21:05 Sun – 21:00 Fri (except 21:00 – 21:01 daily)
COMMODITIES  
Gold 22:01 Sun – 20:55 Fri (except 20:59 – 22:01 daily)
Silver 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Platinum 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Palladium 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US Crude 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Natural Gas 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
INDICES  
Australia 200 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Europe 50 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
France 40 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Germany 30 07:00 – 21:00 (Mon – Fri)
Spain 35 07:00 – 19:00 (Mon – Fri)
Japan 225 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
UK 100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US SPX 500 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US Tech 100 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
Wall Street 30 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)
US STOCKS 13:31 -19:59 (Mon – Fri)
CRYPTOCURRENCIES 22:00 Sun – 20:55 Fri (except 21:00 – 22:00 daily)

 

Trading hours will return to normal on Sunday November 4th 2018, allowing for the daily candle to close at the end of trading in New York each day which is widely considered the end of the trading day.

As always, at info@darwinex.com we’ll be glad to assist you with any question you may have!

 

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Starting October 24th, Fx and XAUUSD swaps will be charged in triple size on Wednesdays

16 October 2018

Please be informed that starting on Wednesday, October 24th 2018, Fx and XAUUSD swaps will be charged in triple size on Wednesdays (instead of Thursdays). Below you can find a brief summary of the different swaps charges for the assets we offer.    Instrument Swaps  FX Daily at 17:00 NY City time (in triple size on […]

Please be informed that starting on Wednesday, October 24th 2018, Fx and XAUUSD swaps will be charged in triple size on Wednesdays (instead of Thursdays).

Below you can find a brief summary of the different swaps charges for the assets we offer.

 


 Instrument Swaps 
FX Daily at 17:00 NY City time (in triple size on Wednesdays*)

Exceptions: USD/CAD and USD/TRY, charged triple size on Thursdays.

Commodities
Gold (XAUUSD) Daily at 17:00 NY City time (in triple size on Wednesdays*)
Rest of Commodities Daily at 17:00 NY City time (in triple size on Wednesdays)
Indices Daily on market close (in triple size on Fridays)
Stocks Daily on market close (in triple size on Fridays)
Cryptocurrencies Daily 17:00 NY City time (in triple size on Thursdays)

*Starting on Wednesday, October 24th 2018.

 

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

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73 % 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.