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Capacity Limits for Global Macro Strategy

Hi guys,

I’m aware of the capacity limits when it comes to using lower timeframe strategies on Darwinex, however I was wondering where you’d stand with using a longer term macro strategy that’s aiming to capture volatility over 1-3 months rather than a few hours?

Theoretically speaking, as long as you could find enough investors, could a DARWIN handle $50-$100million AuM right now as long as the time horizon of your positions is long enough?

Also, are the current capacity limits on lower timeframe strategies always going to be capped at the levels they are, or are there things Darwinex can do over time to allow traders to scale their intraday strategies to 8-figure AuM and beyond?

Thanks!

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At the moment when a trade is placed there’s no difference in divergence. The results of investors trades depend on divergence, the success on a low negative or positive divergence. Trade frequency is just a multiplyer.

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I don’t mean to be rude, but if you don’t have currently 10M, I wouldn’t be worried about 50-100 M Aum for now…

You should ask Darwinex, but I don’t think there is a accurate answer right now.

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I’m extremely fascinated and impressed by what Darwinex have put together so far and I’m just curious as to how far it could grow; no shame in that brother. Thanks for the reply.

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If you are interested in theoretical ceilings, just click on the capacity IA and scroll down. For example FFV who just posted his introduction recently, had an estimated capacity of 150+ mil in february and now it dropped to 80+ mil. So here you go … estimated theoretical.

In reality though what I noticed and have not seen discussed here… most people crumble under weight of AuM. Well bellow those estimated values.

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Capacity estimated by Darwinex is almost always optimistic, HFD has an estimated capacity of 10 millions and begun to show problems after 6 millions.

For people tha want to invest without the hassle of divergence is better to focus on darwins that are below 50% of the estimated capacity.

Experienced traders are aware of this, for exaple ERQ has a theoretical capacity of 1.5 millions but the trader set a max capacity of 700k .

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I wish this is tested some day on my darwin SKI. 600m estimated AUM capacity. It’s a macro strategy.

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Thanks for discussing on my darwin FFV. My Cp has been improved as well as overall performance.

Max. Estimated Investment
200.79 MM

IMO capacity is irrelevant for real investments, divergence is important and the divergence on FFV is very moderate.

@monira
Your D-Score „dropped“ from 85.77 to 85.1, do you know the reasons and the attributes? You had only profitable days.

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@IlIlIlIlI
I see my Os score is dropped. So this is the reason of dropping score.

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