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

[BLOG] Advantages of Trading $DWC vs. Other Listed Assets

Hello Everyone :slight_smile:

Recent weeks have seen some very important content circulated on the Darwinex Blog and Webinar spaces - we hope you’ve found it all useful.

This latest post can be found here:
http://blog.darwinex.com/advantages-trading-dwc-vs-listed-assets/


In addition to this, you may also wish to visit the following:

  1. [Webinar Recording] $DWC – Real Time Sentiment Index & Security
  2. [Webinar Recording] Effects of Market Volatility on Trader Performance
  3. [Darwinex Blog] Hedging DARWIN Portfolio Risk with $DWC
  4. [Darwinex Blog] Mean Reversion Tests on DARWIN $DWC (updated!)

As always, please share your thoughts, feedback and any questions you may have - we are always here and listening.

Kind Regards,
The Team @ Darwinex Labs

4 Likes

Hi, is it possible to provide us a backtest of how the DWC would had performed before it went live?
With that data we could make better decisions about when the DWC tends to oscillate to the mean.

4 Likes

Hi @TradingMove,

Thank you for raising the question! :slight_smile:

Here’s a backtest of $DWC’s Underlying Strategy, from January 01, 2015 to June 09, 2017.

Data for the live DARWIN is only available since its launch date (26/09/2016), on the DARWIN’s listing (https://www.darwinex.com/darwin/DWC.4.20/)

Notes to assist with interpreting the data:

  1. This backtest is at roughly 2% VaR as opposed to the live DARWIN (10% VaR).
  2. The orange vertical line represents the day (26/09/2016) the DARWIN went live on the platform (at quote 100.00).

Hope this proves useful :thumbsup:

8 Likes

Hello @DarwinexLabs I have a concern here. Juan Colon has told several times that DWC will move in range from about 95% to 110% approximately. But according to the last image you shared with us, DWC darwin began from Oct 2016 on, and i am worried about DWC because it seems, that yes, it is true that DWC has moved in range from 95% to 110% (104 to 107 scale in the picture) but only after Oct2016 , but before that, we had very low values at 100, (do not know what current % darwin value would it be) and very high values at 109(do not know what current % darwinx value would it be), wich would mean that if i am investing right now on DWC at 97% thinking that it will go up to 105% based on Juan´s comments, i would be in risk of lose my money without having a clear idea of how DWC could behave (and i truly understand that in this bussines there will be always risk).

Can you please help me to clarify this (maybe wrong) idea?

Thank you

2 Likes

Hi @Azeothros,

Thanks for your enquiry. Please note that we cannot control DWC’s moves, so you are raising a great point.

The fact that DWC has not gone below 95 in the last year does NOT mean that it won’t do so in the future. Also, it can go above 110, too.

In other words, there’s no guarantee that DWC will always move in the same range.

Best,
Ignacio

6 Likes

@Azeothros

From my own research on the topic (so it is totally subjective :grin:).

When studying $DWC, my first concern was the fact that, since the track record is statistically relevant (10 Ex), its Mc is sliding with Pf.

The problem I have is, The datas collected before reaching 10 Ex are not necessarily significant…

I’m not sure if my conclusions are right at this moment, or if it is a view of my freaky mind :stuck_out_tongue_winking_eye:
3 to 6 D-Periods more should be enough to conclude something. But I’m watching closely.

But it seems that Pf is directly related to the degree of correlation Mc
If so, it is possible that we are actually closing a long term cycle (of bearish trend $DWC)

For the moment, I’m focusing more on intraday cycles, but in any cases…[quote=“Azeothros, post:4, topic:2596”]
i would be in risk of lose my money without having a clear idea of how DWC could behave (and i truly understand that in this bussines there will be always risk).
[/quote]
You can’t forecast accurately / without risk the behavior of any asset, not only the $DWC

I you take into account that La is pretty good, you can always try to earn more than you pretend to lose. Not necessarily on each and every transaction, but on the long run.

My 2 cents :wink:

2 Likes

DWC is built on the behaviour of the community of traders, but everything changes, the community changes.

Investors can just buy so if the range moves higher everyone is happy but what if it reverts to the old range between 102 and 104, corresponding to darwin quote 85-95 ?

This is the reason why I dont’ care too much about DWC and I keep on building a stable portfolio of growing darwins.

The study is very interesting, the mean reverting inefficiency is clear but not so granted to be a Holy Grail.

5 Likes

Hi @Azeothros!

Just to complement what @ignacio, @KonekoChanFX and @CavaliereVerde have stated right above, I highly recommend you to to take a look at our blog for a more detailed explanation on DWC.

I typed DWC in the search box and this is what I got.

Hope you find this 7 articles useful :slight_smile:

6 Likes

Hi ! Could this graphic be updated today?

Thanks !

Do we need ranging assets or investable darwins? :thinking:
I am for the second…
:sunglasses:

2 Likes

Hi, sorry on this… its Friday…
today i decide to take some time and make my opinion ( investigate…) …and conclusion, never see nothing like this…
advantages of Trading $DWC???
it is more then time for Darwinex real start to think in Investors…
if DWEX have been “killed” what can we say about DWC?
enough of experiments … talk with experiment investors and traders… the rest are only “google search” genius…
OldSchool
PS: i hate to be pessimist!, but sincerely…

2 Likes

I respect the work of quantitative research but honestly, DWEX was much more needed than DWC .

2 Likes

I think it’s positive to have different sort of DARWINS for different sorts of traders and investors.

There are traders trading different currencies and assets… why not have different DARWINS that behave differently?

It’s simple: if you don’t like $DWC… don’t trade it, but let those who like it trade if they like :wink:

2 Likes

When DWC was presented I thought that it was the appetizer before a reloaded DWEX or other investable products.
Now we have 3 millions waiting on DWC instead of being invested on many good darwins.
Just a bit less hype on DWC and a bit more priority to tools useful for investors, investing good traders should be the main focus.

2 Likes

hi,
no problem with that and your are correct… in general…
just one note, investors ( at least some of them) do not have time to make analysis, like traders, experienced clients, etc…
and what could be more interesting for Darwinex and traders who are able to be there, of that one index, that simple pick-up the best Darwins ( could be D-Score…) that are profitable and “coherent” ?
nothing in my opinion and that should be implemented, even if investors are not able to trade it, but that they could “see” that invested in 5-10 of those Darwins… can return in average, lets say 10% / year return with minimal risk…
when investors like someone , (by is system, id posts, etc… ) that will be always the best in place… and nothing change it… but for regular investors, give a good perception of quality ( high preferable) of average is very important in terms of trust,…
so in conclusion my opinion Darwinex should keep things for Investors the more KISS as possible( DWEX…), and avoid complex (and unprofitable…) like DWC…
as always, just one opinion… wishing a great success for Darwinex project…
OldSchool

2 Likes