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Capacity Investable Attribute (former Scalability)

At the end of the month and getting close to the 31 days required for the algos I have seen my attributes now have data populated except Capacity.

https://www.darwinex.com/account/D.44892#

Any guess what it might be, maybe its zero :sweat_smile:

Or extrapolate a D-score with 6 months of history :slight_smile:

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Looks good bro…Keep it up

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Any guesses on capacity with average win 7.9 pips, average loss 3.05 pips and average duration 32 mins?

At a guess 0.2?

Don’t forget % of winning trades, since you have only 35% win it means you make less then 1 pip per trade ((0.357.9) - (0.653.05)), don’t excpect to much, your D-ratio is pretty high as well. But i think 1Million maybe in real, calculated CP is not verry accurate. You will have to wait for some more data. It depends also a bit how you enter a trade (stop, limit, market order) i think limit is the best to have a chance for good prices for following investor money :wink:

I reckon about 1 MM but I’m no pro…I was just as anxious to find out what XII Cp was gonna look like…but soon it will be revealed.

I have looked now at the divegence. It’s scary! How is that possible?

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PME: “strategy is based on trading high-impact news events”
volatility/liquidity and latency on trade entry with market orders? I’d be interested to know as well.

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The divergence has been slowly increasing since the very beginning and I don’t think the reason is THA itself

I think the main reason of this divergence is the last weeks rally in the GBPUSD (my account is in GBP and THA is in USD)

I agree with Cavaliere, the key is not getting involved in bad Darwins. I just assumed that divergence happens and don’t pay too much attention to it.

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Divergence erodes your profits it doesn’t threaten you initial investment.
THA has stacked a -16% divergence also in my community portfolio since the end of May 2017.
Despite divergence it has a net profit of 30%.

with all respect - no.
Meanwhile (!) divergence has a much higher meaning as it shows the average divergence on EVERY trade. Right?

So THA with 12,… % divergence hast to make an AVERAGE of more than 13 percent on ALL trades, including the loosing ones, to bring some money to investors. That means … about 20 or 25 % per winning trade? Do you believe this Darwin will do that?

Darwinex NOW goes into a new stage where they have more investors than good enough traders (in the eyes of the investors losing money because of divergence while the trader is shown making money).

If that’s not correct, please explain detailed. Better proove it with screenshots from your real portfolio.

Edit: @Chita: I asked whether this divergence was developed in the last weeks because I could watch it with VTJ in the last weeks.

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you are wrong, the 12% is over the sum of all divergence since the position got opened. (somewhere sep/oct 2017 - so for a period of ~4-5 month)

As far as i know there was 1 very bad day (concerning divergence, nearly 10%) in THA and finbou was explaining it (he traded a not very liquid pair), trying to avoid this in future. Witout this day it would be not that bad.

edit: if you open divergence tab for THA you can see that the last 100 trades, the average size was 3.8M so Darwinex has to get 38 Lots into the market and to make it worse it’s during news events most of the time. In one webinar they showed that in generally up to 10 Lot there is no issue with divergence, but with more it starts to become negative step by step. You can also see that the average divergence is showed with nearly 0.8 pips, so this is what you loose in “average” for every trade (for the last 100 trades). Some trades are very bad (not even on the scale, much worse then -1 pip) if finbou can manage to reduce these kind of trades/events he might be able to improve it a bit since median divergence is only 0.56 pips.

If you now switch to Cp Attribute, set time to “ALL” - you see the red line, this is for 0.5 pips divergence, so if THA would have had same divergence like now since the beginning you would have a result somewhere between the red (0.5) and the green line (-1).

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@Journalist I have THA since october. You can see how divergence has been increasing looking in previous posts screenshots. In october it was -0.9%, the in December around 6% and now is almost 13%

In the meantime GBPUSD was bullish since October, which I thought had a great influence in that divergence… But I have to say that is not the case. I have another portfolio with THA in a demo account in USD, and the divergence there is -14% :cold_sweat:

And looks like VTJ is going down that road as well…

Not good.

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You might be right on the point that divergence is added as shown in the CP attribute graph:


The 2 pip divergence line came down from more than 53 % profit a year ago to 16 % profit now. That means an investor settled always on this 2 pips slippage lost about 25 % of his investment in 12 months, if he bought it directly after migration to Darwinex.
I’m nearly sure that a lot of investors have to take more than 2 pips divergence now. If you compare the scrreshot 25 days ago Chita's Portfolio. Follow up thread to the last one you see that also this investor lost money while divergence was more than doubled.

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yeah just made an edit to my post, the reality of THA is right now between red and green line (0.79 pips) but can be improved a little if they take more care of which symbols they trade/how they enter the market

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Hi @Chita
thanks for your kindly words.

i not pretend any polemic, but with my little experience, and you are my investor, i can tell you, divergence and capacity are key aspects for every trader aspiring to manage investors money! in real world, ( out-side Darwinex).
in this , FOR ME, the only sin of Darwinex is not put capacity with the value it deserves ( and i claim long time ago in benefit of investors). Against Divergence only trader can fight…
for this and other important aspects, Darwinex and investors can do nothing, impossible to transform all bad system/traders ( not invest-able) in a holly grail
all the best,
OldSchool

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Bad trading has nothing to do with low capacity trading.
Investors lost money because of gamblers running concealed martigales, often with a decent capacity.

When small capacity systems (500k) are full ,investors move to systems with higher capacity.
At some point every system will reach full capacity if everything keeps working, even systems with 5-10MM capacity.

The discussion focus moved to capacity and divergence so I moved it to the right place. :slight_smile:

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[quote=“Medialux, post:1, topic:630”]

(October 4, 2016)

So yes, we must not only find good Darwins, but consider that the capitalization of a Darwin is limited.

And it is far from a detail. It’s even potentially a major limitation of Darwinex.[/quote]

I just re-read a this tread. I was surprised to find that it was me who created it on October 4, 2016.

In fact, I realize that I had said the essential a long time ago.

I had a lot of advance on the theme of the next webinar.

Hopefully my prediction that Darwinex will be the next Apple Inc. is also coming true. :joy:

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Hey @Medialux!

Seems you have a great long term vision. Keep posting that we are the next Apple while we (and you all) revolutionize the market.

:+1: :+1: :+1: :+1:

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hi @Journalist
in my opinion, it should not only be show as actively use to manage darwins and have importance o D-Score as all “important” IA, ( long time i request this years,…) and why?
all major asset manager, have this “tools”, even if they don’t tell clients… and for what? protect investors!



so Darwinex (good or bad no matter) calculate Capacity, for protection of investors, if THA have a 1,5M calculated, at that point, to protect those investors, new investors should be close! , now is with 2,7M invested… who lose with this are investors! make no sense…
Darwinex can improve it, with some measures, but in my opinion, to real change divergence only the trader can do it!, but as big part of traders here not even know what it is… and investors pay the bills…
OldSchool
PS: all credit on this for Darwinex, because in similar business other brokers, etc… not even now what capacity, divergence, etc are…

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