In this blog post: https://blog.darwinex.com/new-darwinia/ Juan Colòn argued that: "...virtually anyone gets a shot at managing investor monies, with virtually no risk."
That's a really good point and for sure if Darwinex want to grow more, it must be addresses because where the real money stands, those are questions that arise:
• How credible is a manager / strategy with infinite investor leverage with e.g. EUR 100 of equity in their trading account?
• What prevents a data scientist from listing e.g. 20 seemingly plausible algorithms, listed with e.g. EUR 100 equity a piece and getting “free” investor leverage!?
• What sort of manager/investor alignment do you get with such asymmetric risk taking?
So I do really understand that this had to be done, ask the traders to put their money where their mouth is.
That said, we can’t notice that it is a small step and not a big one: still if one manage to win a few darwinia in a row, can easily manage more than a million with only 10.000€ on his account…. And that’s not counting the investors money!
But there are the “drawdowns” (yep, not the DD we usually talk about ) and in the community we can find a lot of comments pointing out what’s wrong but the main point is that doing so Darwinex is excluding some traders who can’t afford to invest now what it is required. I don’t want to enter in the specifics, but everyone can have reason not to invest that kind of money even if they are truly committed and confident (here I’m thinking even at young talented trader…. ).
So what’s the proposal? It’s a simple one: have two Darwinia Competition each month, one for those who have more than 2000€ (the minimum requirement for taking 30.000€ in the last standing place) and one for those have less than 2000€: the first competition (let’s call it “Darwinia Pro”) will have the new rules, the new one will have the old rules but a total allocation amount of 200.000€ (from 30.000€ to the first to 500€ to the last one). In this way who is really a good trader will have the chance to grow and to reach the amount needed to be in the “pro” competition and Darwinex will continue to attract traders from around the world who might became professional traders.