BOARD

What can a profitable trader expect from investors?

12 August 2016

A valued Darwinex trader e-mailed asking quite a while ago: what can a profitable trader expect from Darwinex?

I promised to answer on a blog-post – something I’ve failed to do for 5 months running …

Trader AuM (assets under management) now public

This post was so long in the making, in fact, that our functionality pipeline made the question redundant. Capital allocations are now public for prospective traders and investors.

The hope is for traders to quickly know where they stand in the investor pecking order.

Similarly, investors get the most aligned advice possible: what could be better than transparently seeing where everyone actually risks their bucks?

DARWIN AuM

Which means – this post is now redundant.

Or is it?

Investor sales: in whose job description?

And then it dawned on me that something else is going on. Please read on – I’ll make my point further down, but a bit of an intro is required.

Living off independent trader is all about trading consistently – e.g. grow personal capital and beat living costs. Repeat. Trouble is, trading assets in the tens / lower hundreds of thousands (e.g. you belong to 99% of man-kind), you can:

  1. Keep risk “reasonable”. Preserve capital, spending decades before you beat your living costs. Trade pea-nuts, make pea-nuts.
  2. Leverage pea-nuts 500:1 and pray it goes well. Except – this 99.99% guaranteed to fail. A pretty time and capital intensive road to nowhere 🙁
  3. Approach 1, managing investor alongside personal capital

Darwinex was founded by a trader who tried 1 & 2, and concluded that 3 was the only really viable option – but learnt first-hand that a “1-man asset manager” is 4 simultaneous full time jobs:

  1. Front office: Develop, implement & maintain a strategy that consistently beats the market – conditio sine qua none
  2. Sales: Attract investors without credibility (why would they believe that you really, really make money?)…
  3. Back-office: Service  existing investors – have you ever had to explain to an investor that yes, unfortunately drawdowns are part of trading?
  4. Compliance: Meet regulatory requirements – acquiring (and perhaps more importantly!) servicing a regulatory licence is both expensive and time consuming

Steps 3 & 4 are firmly on Darwinex’s plate. The DARWIN Exchange offers DARWIN Providers a regulatory and technological platform to focus solely on the trading.

Step 1 is strictly on the trader’s side. It’s a competitive (darwinian!) selection and there’s no investors if your trading sucks.

What about sales?

Well – sales could be teamwork. Darwinex is certainly investing time and money into technology to more efficiently source investors – and organic investor AuM are growing along. There are now 10+ strategies managing more than USD 200k / head – a modest number, but not bad considering the investor platform only went live early in 2016. In that sense, traders topping the filters that investors most care about (return, D-Score, etc.)  can expect 3rd party investor capital in the hundreds of thousands of USD.

Is that it?

Committed traders do better than “expect”

Yes: AuM numbers are not earth-shattering (yet). And here’s the news: they won’t be until the trader movement kick-starts the following virtuous circle:

  1. Investors win consistently, because…
  2. A steady supply of investable traders wins consistently

Taken as a whole, current investors are doing promisingly well – but the supply of investable traders on the platform remains thin. For this reason, in addition to further developing trader and investor technology, increasing the supply of investable traders will remain the core priority. Yes, there will be efforts done on the investor side (in addition to existing B2C traction, we are regularly approached by family offices and asset managers) – but investors won’t be as prioritised in the coming months in the same way that attracting traders will.

Put it another way: the reason why we’ll continue to grow Darwinia is that, for now, hundreds of thousands (not millions) are what you can expect from 3rd party investors.

But then again, if you have an investable strategy – you can already engage your friends and family circle to manage their monies via a regulatory & technologically sound set-up. If you’re genuinely good, you’ll stand head-and-shoulders among the trader community, who’ll give you the credibility you lacked to date.

Given that opportunity, if you’re really committed to making a living as a trader – is it really so smart to sit back expecting investors to arrive?

Have you told your friends that your evolution is now investable?

 

Last News

Amended Trading Hours due to US Memorial Day & UK Spring Bank Holiday (28 May 2018)

22 May 2018

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time). Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time).

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

 Instrument Trading Hours
 FX  22:00 Sun – 22:00 Mon
  DARWINS  22.05 Sun – 22.00 Mon
 COMMODITIES
Gold* 23:00 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
Natural Gas* 23:00 Sun – 17:45 Mon
 INDICES
Australia 200 22:05 Sun – 22:00 Mon
 Europe 50 22:05 Sun – 22:00 Mon
France 40 22:05 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225*  22:05 Sun – 18:00 Mon 
 UK 100* Closed
 US SPX 500* 22:05 Sun – 18:00 Mon
 US Tech 100* 22:05 Sun – 18:00 Mon
Wall Street 30* 22:05 Sun – 18:00 Mon
*Amended Darwinex trading hours.

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

Amended trading hours during German Public Holiday (21 May 2018)

16 May 2018

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).  Instrument Trading Hours  FX  22.05 Sun – 22.00 Mon   DARWINs  22.05 Sun – 22.00 Mon  COMMODITIES 23.00 Sun – 22.00 Mon  INDICES Australia 200 22.05 Sun – 22.00 Mon  Europe 50 22.05 Sun […]

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX  22.05 Sun – 22.00 Mon
  DARWINs  22.05 Sun – 22.00 Mon
 COMMODITIES 23.00 Sun – 22.00 Mon
 INDICES
Australia 200 22.05 Sun – 22.00 Mon
 Europe 50 22.05 Sun – 22.00 Mon
France 40 22.05 Sun – 22.00 Mon
Germany 30* Closed
Spain 35 07:00 – 19:00
Japan 225  22.05 Sun – 22.00 Mon 
 UK 100 22.05 Sun – 22.00 Mon
 US SPX 500 22.05 Sun – 22.00 Mon
 US Tech 100 22.05 Sun – 22.00 Mon
Wall Street 30 22.05 Sun – 22.00 Mon
*Amended Darwinex trading hours.

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

Darwinex Trading Hours for UK Public Holiday (7 May 2018)

3 May 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:05 Sun – 22:00 Mon   DARWINS 22:05 Sun – 22:00 Mon  COMMODITIES   Gold 23:01 Sun – 21:59 Mon Silver 23:00 Sun – 22:00 Mon Platinum […]

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:05 Sun – 22:00 Mon
  DARWINS 22:05 Sun – 22:00 Mon
 COMMODITIES  
Gold 23:01 Sun – 21:59 Mon
Silver 23:00 Sun – 22:00 Mon
Platinum 23:00 Sun – 22:00 Mon
Palladium 23:00 Sun – 22:00 Mon
US Crude 23:00 Sun – 22:00 Mon
Natural Gas 23:00 Sun – 22:00 Mon
 INDICES  
 Australia 200  23:00 Sun – 22:00 Mon
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225 23:00 Sun – 22:00 Mon
 UK 100* 23:00 Sun – 22:00 Mon
 US SPX 500 23:00 Sun – 22:00 Mon
 US Tech 100 23:00 Sun – 22:00 Mon
Wall Street 30 23:00 Sun – 22:00 Mon
*Amended Darwinex trading hours.

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

Darwinex amended trading hours (1 May 2018)

24 April 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Mon – 22:00 Tue   DARWINS 22:01 Mon – 22:00 Tue  COMMODITIES   Gold 23:01 Mon – 21:59 Tue Silver 23:00 Mon – 22:00 Tue Platinum 23:00 Mon – 22:00 Tue […]

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Mon – 22:00 Tue
  DARWINS 22:01 Mon – 22:00 Tue
 COMMODITIES  
Gold 23:01 Mon – 21:59 Tue
Silver 23:00 Mon – 22:00 Tue
Platinum 23:00 Mon – 22:00 Tue
Palladium 23:00 Mon – 22:00 Tue
US Crude 23:00 Mon – 22:00 Tue
Natural Gas 23:00 Mon – 22:00 Tue
 INDICES  
Australia 200 23:00 Mon – 22:00 Tue
 Europe 50* Closed
France 40* Closed
Germany 30* Closed
Spain 35* Closed
Japan 225 23:00 Mon – 22:00 Tue
UK 100 23:00 Mon – 22:00 Tue
 US SPX 500 23:00 Mon – 22:00 Tue
 US Tech 100 23:00 Mon – 22:00 Tue
Wall Street 30 23:00 Mon – 22:00 Tue
*Amended Darwinex trading hours.

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

Darwinex Trading Hours for ANZAC Day

19 April 2018

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Wed – 22:00 Thu   DARWINS 22:01 Wed – 22:00 Thu  COMMODITIES   Gold 23:01 Wed – 21:59 Thu Silver 23:00 Wed – 22:00 Thu Platinum 23:00 Wed – 22:00 Thu Palladium […]

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Wed – 22:00 Thu
  DARWINS 22:01 Wed – 22:00 Thu
 COMMODITIES  
Gold 23:01 Wed – 21:59 Thu
Silver 23:00 Wed – 22:00 Thu
Platinum 23:00 Wed – 22:00 Thu
Palladium 23:00 Wed – 22:00 Thu
US Crude 23:00 Wed – 22:00 Thu
Natural Gas 23:00 Wed – 22:00 Thu
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Wed – 22:00 Thu
France 40 23:00 Wed – 22:00 Thu
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225 23:00 Wed – 22:00 Thu
 UK 100 23:00 Wed – 22:00 Thu
 US SPX 500 23:00 Wed – 22:00 Thu
 US Tech 100 23:00 Wed – 22:00 Thu
Wall Street 30 23:00 Wed – 22:00 Thu
*Amended Darwinex trading hours.

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

Change in bank account details for GBP deposits

6 April 2018

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part. Nevertheless, due to the fact that […]

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part.

Nevertheless, due to the fact that the bank account details used up until now for GBP deposits have been changed, if you wish to make a deposit via bank transfer, make sure to initiate the deposit from your Wallet in order to receive the new bank account details per email. This should be the way you always initiate a deposit as opposed to copying a previous deposit’s data.

We remain at your disposal at info@darwinex.com