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CHM - Aranea

Hi all,

I just want to present myself to this community. I am Miguel (Spaniard). I registered in Darwinex a few months back and I have created my Darwin CHM to represent my trading mainly in Forex for EUR pairs and S&P500. I have been doing personal trading for over 20 years.

Since my background is in Software I am interested in doing EA but for now all I do is manual.

I have a question about Darwins. One of the problems I have right now is that on my trading account my VaR is 50% and that is too risky. I have been thinking about investing mainly in my own Darwin where the VaR should be reduced to 10%. In that case do I loose some the return and only get 80% or I get the other 20% though the performance fees ? What do you think about this ? Also how can I trade to get my VaR closer to 15%.

Good day to everyone.

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Hi and welcome :slight_smile:

As you correctly assumed you will be receiving the performance fee so trading your own Darwin won’t lose you money unless your divergence is negative, in which case you will suffer from “slippage”.

Usually for Darwins without a lot of AuM, you will see a positive divergence though. In that case, investing in your own Darwin might even bring you some small extra profit.

As far as VAR is concerned you might want to take a look here:

https://blog.darwinex.com/value-at-risk-or-var/

https://blog.darwinex.com/the-new-risk-manager-2-0/

https://blog.darwinex.com/the-new-risk-manager-2-0-part-2/

It’s hard to give you concrete numbers without knowing your strategy, as your market exposure and risk are depending on too many factors. If you personally think your VaR is too high, just reducing lot sizes helps usually. Although, trading with a constant high VaR won’t penalize your Darwin. It’s up to you how much risk you want to take on your personal account :slight_smile:

6 Likes

@KlondikeFX : Thanks for the reply. I will check the blog post.

The problem with my strategy is that, I estimate the degree of confidence I have in a movement and the more confident I am then I contract more lots but I reduce time of operations. I guess some of my investments have an awful impact on some ratings like DC.

Also the % return of my personal account is not linearly correlated with the Darwin. My personal accounts some times is 4x more profitable (and risky) while at other times it is 8x. That is intriguing.

Thanks anyway and have a nice weekend.

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Dc R+ and R- are quite useless scores, don’t waste your time with them.
Making pips with a stable VaR is enough for every darwin.

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@CavaliereVerde: Thanks. And what about La ? is lost aversion quite important ?

Best regards

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As investor I look for STABLE La score more than an high value.
For Dscore La isn’t so important, important scores are Ex Mc Pf .

Hi, just for you to know, you can Join a spanish group in Telegram about Darwinex here: https://t.me/darwinizate

We are now more than 500 users and have a lot of discussions about Darwins, and the group is composed by either traders or investors.

Hope see you there.

By the way! Congrats for that beggining!

Hi Miguel @Aranea, welcome here!

There’s not enough data to be worried about any investable attribute, except Rs that you want to keep stable.

Just run your strategy as it is, and investable attributes will “price” your behaviour over the time and aggregation of data :wink:

Wish you a nice Darwinex journey, and a great success to CHM !

1 Like