BOARD

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.

Last News

DAX Trading Hours Soon to be Extended

9 July 2019

The CFD of the DAX (GDAXI) start trading with an extended schedule as of Monday July 22nd, 2019.

The CFD of the DAX (GDAXI) will soon – probably as of Monday July 22nd – start trading with an extended schedule.

The current schedule is as follows:

  • 07:00 – 21:00 (London) Mon-Thu
  • 07:00 – 20:55 (London) Fri

The extended schedule will be as follows:

  • 01:30 – 21:00 (London) Mon-Thu
  • 01:30 – 20:55 (London) Fri

We’ll update this post with the final implementation date of the extended schedule as soon as possible.

Update on July 18th: the DAX will start trading according to the new schedule on Monday July 22nd.

Note that during the night, GDAXI usually has a wider spread and a lower liquidity than during the day.

Please get in touch at info@darwinex.com for any questions you may have.

apalancamiento esma

The FCA Makes ESMA’s CFD Restrictions Permanent

4 July 2019

The new measure doesn’t affect us more than the ESMA intervention already did. And it affected us in a positive way, contributing to the improvement of our clients’ performance.

The UK’s Financial Conduct Authority (FCA) made the European Authority’s (ESMA) CFD restrictions permanent this week.

Some reactions to this we saw in user forums implied this was a “ban” of Contracts for Differentes (CFDs). Some even said it was “the end of Darwinex”.

We’d like to clarify that the FCA’s measure makes the restrictions we already applied last year permanent. But nothing else changes. It’s only that this time it’s the national regulator that said this while last year it was the ESMA.

The new measure doesn’t affect us more than the ESMA intervention already did. And it affected us in a positive way, contributing to the improvement of our clients’ performance.

Trading Schedule for the US Independence Day on 3rd and 4th July 2019

27 June 2019

Please note the amended Darwinex trading hours (in red) for the upcoming US Independence Day on 3 & 4 July 2019. All times are in UK (BST) time.

Please note the amended Darwinex trading hours (in red) for the upcoming US Independence Day on 3 & 4 July 2019. All times are in UK (BST) time.

 

FX Wednesday 3rd July Thursday 4th July
All FX Instruments 22:05 Tue – 22:00 Wed 22:05 Wed – 22:00 Thu
DARWINs 22:05 Tue – 21:59 Wed 22:05 Tue – 21:59 Wed
Commodities
Gold 23:01 Tue – 21:59 Wed *23:01 Wed – 18:00 Thu 
Silver 23:00 Tue – 22:00 Wed *23:00 Wed – 18:00 Thu 
Platinum 23:00 Tue – 22:00 Wed *23:00 Wed – 18:00 Thu 
Palladium 23:00 Tue – 22:00 Wed *23:00 Wed – 18:00 Thu 
US Crude 23:00 Tue – 22:00 Wed *23:00 Wed – 17:45 Thu 
US Natural Gas 23:00 Tue – 22:00 Wed *23:00 Wed – 17:45 Thu 
Indices
AUS200 23:00 Tue – 22:00 Wed 23:00 Wed – 22:00 Thu
STOXX50E 23:00 Tue – 22:00 Wed 23:00 Wed – 22:00 Thu
FCHI40 23:00 Tue – 22:00 Wed 23:00 Wed – 22:00 Thu
GDAXI 07:00 – 21:00 07:00 – 21:00
J225 *23:00 Tue – 18:15 Wed *23:00 Wed – 18:00 Thu 
SPA35 07:00 – 19:00 07:00 – 19:00
UK100 23:00 Tue – 22:00 Wed 23:00 Wed – 22:00 Thu
SPX500 *23:00 Tue – 18:15 Wed *23:00 Wed – 18:00 Thu
NDX *23:00 Tue – 18:15 Wed *23:00 Wed – 18:00 Thu 
WS30 *23:00 Tue – 18:15 Wed *23:00 Wed – 18:00 Thu
US stocks 14:31 – 20:59 CLOSED
 
Crypto
All Crypto Instruments 22:05 Tue – 22:00 Wed 22:05 Wed – 22:00 Thu

 

 

The DARWIN Exchange will remain open even if the underlying assets’ market is closed. Should you want to know the standard procedure when you buy/sell a DARWIN whose underlying asset market is closed, we recommend you to read the following Help Center article: What happens if you want to buy/sell a DARWIN which has underlying trades open with different opening/closing times?

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

Australia Public Holiday on 10th June 2019

5 June 2019

Please note the amended Darwinex trading hours for the upcoming Bank Holiday in Australia on 10th June 2019 (all times are in UK time).

Please note the amended Darwinex trading hours for the upcoming bank holiday in Australia on 10th June 2019. All times are in UK (BST) time.

Indices  Monday 10th June 2019
AUS200 08:10 – 22:00

 

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!

apalancamiento esma

Upcoming holiday in New Zealand resulting in the possibility of wider spreads and thinner liquidity

30 May 2019

Please be aware that there is a bank holiday in New Zealand on Monday June 3rd. Therefore, during this time, spreads may be wider and liquidity may be thinner for all NZD-related assets. For any questions, we’re one email away, at info@darwinex.com.

Please be aware that there is a bank holiday in New Zealand on Monday June 3rd.

Therefore, during this time, spreads may be wider and liquidity may be thinner for all NZD-related assets.

For any questions, we’re one email away, at info@darwinex.com.

US Memorial Day & UK Spring Bank Holiday on 27th May 2019

14 May 2019

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on Monday 27th May 2019. All times are in UK (BST) time. Important: if you open / close an investment in a DARWIN that has an open trade in an asset with the market closed (see amended trading […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on Monday 27th May 2019. All times are in UK (BST) time.

Important: if you open / close an investment in a DARWIN that has an open trade in an asset with the market closed (see amended trading hours in red below), the transaction will not be carried out immediately. The operation will show up in your investor portfolio once it has been executed by our system when the index/commodity resumes trading on Monday night.

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

Commodities   Monday 27th May 2019
Gold 23:01 Sun – 18:00 Mon
Silver 23:00 Sun – 18:00 Mon
Platinum 23:00 Sun – 18:00 Mon
Palladium 23:00 Sun – 18:00 Mon
US Crude 23:00 Sun – 17:45 Mon
US Natural Gas 23:00 Sun – 17:45 Mon
Indices
UK100 CLOSED
J225 23:00 Sun – 18:15 Mon
SPX500 23:00 Sun – 18:15 Mon
NDX 23:00 Sun – 18:15 Mon
WS30 23:00 Sun – 18:15 Mon
US Stocks
All US stocks CLOSED

The rest of the assets will trade according to their usual trading time.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % 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.