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.

Creating a conduit to between Traders and Investors

After a couple of bad days for my KPO darwin I was wondering what the current investor/s are thinking and was thinking that it would be good to have some sort of conduit between a trader and the investor. I think this has been discussed elsewhere and think Ignacio had a view on this while in a Darwinex webinar one day. Now I know the community is potentially a way of doing this but I was thinking more of a direct channel.

Anyone any thoughts / idea’s ??

Obviously it would have to thought out very carefully as there is always a level of separation required, after-all no trader would like to be stalked by angry investors should performance dive or not be to an expected level etc.

I check in every night to look at investor activity and one thing I notice is that investors dive in and out very quickly and also get out with a loss due to a dip in the value of the darwin. (p.s. its very easy to keep tabs on all of the 1 or 2 investors currently in KPO :smile: ).

It gives me the impression that investors may be very jumpy and do not view a darwin as a medium term investment vehicle i.e. they are day trading Darwins. Personally if I was trading my own darwin I would buy the dips :joy:

1 Like

Every trader and every investor is registered by default to this forum.
IMO is a really great mean of communication betwen traders and investors.
The “#darwin” topics are the ideal place for pertinent questions between mature businessmen.
I think that private messaging should be enabled (now it is disabled) but with a friendship prerequisite, like on facebook.


It would be great if we could have an open conference room facility like skype for business, or google hangouts as these always help the day go by quicker in slow markets and can be used by trader and investor groupings alike to share and discuss trading and investing. I like the sound of “trader hangout lounge” and “investor hangout lounge” :smile:

1 Like

I can see the merits of having a direct way to communicate. But I think its fine the way it is now. This forum software is one of the best I have come across so far. :thumbsup:
Every trader can create his own thread in the Darwins section and address investors’ questions directly. As the answers are open to all, there is no need to answer the same questions over and over again. It also supports transparency.

Other than that using direct communication between traders and investors puts you in danger of accidentally giving investment advice which you are probably not regulated for.
I am also torn on the private messaging thing. It would be sometimes useful for very off-topic stuff, on the other hand, it would be a shame if some valuable information could be lost for the majority …

edit: oh, and in regards to investors jumping in and out. That’s common human behaviour. This makes it so very tough for investors to book a profit. Patience is one of the bigger assets you need to be successful in trading and investing. Winnetou was below high watermark for around 8 months. Almost nobody has the guts to keep in during that time. So what most investors do is: They see a good performing darwin and buy it near the highs. It goes into the inevitable drawdown and they sell near the lows fearing it might never recover. They see it recovers, buy again near the highs … rinse and repeat :wink:


Interesting idea, though a definite problem with it is the issue of Regulatory Compliance.

At present, investors purchase Darwins, an asset, from Darwinex.

That is legal, since Darwinex has the appropriate regulatory permissions.

It’s almost irrelevant from a regulatory standpoint that these Darwins being purchased are “individual trader strategies encapsulated into an asset” - because the asset at the end of the day is being bought and sold to/from Darwinex, a regulated Asset Manager.

The moment investors start reaching out directly to traders, it establishes a direct line of advice/management, and that I’m certain will pose regulatory issues for sure, unless of course the trader in question is regulated to do so, which is not the case 9.9/10 times.

I agree with @CavaliereVerde that a moderated, “connections between members on this forum” model may be more appropriate, but I don’t think it would add value to the community as it starts becoming more exclusive between traders and investors that way.

At the end of the day, we must remember that investors are making their own decisions aided by Darwinex IA’s and Darwin data of the underlying strategy, and it is this way to promote a neutral “exchange” and not direct money management - at least that’s my understanding of it all :slight_smile:

Just my 2 cents :thumbsup:


100% agree with @KlondikeFX - I too have seen this behaviour manifest itself recently with my Darwins.

One thing investors are able to see (if they have spent some time investing), is the mean-reverting behaviour of any strategy that has been around profitably for years.

Winnetou and IntegraCoreLiveX are examples of such strategies - where it is clear if you study the performance charts that it is relatively simple to “estimate” a return to mean, at which point making a purchase of the corresponding Darwin may pose lower risk.

At present, like @KlondikeFX, I too have observed 5-10 investors jumping in at climactic highs and jumping out at the first sign of completely normal Drawdown… :grimacing:

But there is also a contingent of investors in my Darwins who I have been so impressed by, who have really gone very far in assessing excellent entry points, very frequently I might add, and without closing previous investments either - I would say 3 or 4 of the 51 investors in my Darwins have done this so far, a low number that I hope rises in time :slight_smile:


Interesting. I guess you will be able to tell if this makes more for them over time, as they will pay you more performance fees.
Out of interest, without revealing any details of course ;), are you able to see who the individual investors in your Darwin are by Darwinex username, and their individual performance, or is it all bundled into one big pot?

1 Like

Hi @SATFX :slight_smile:

Yes, individual usernames of investors and their performances are visible to providers under Income -> Performance Fees -> {selected DARWIN}


I’m hanging on to my investment in the DWEX index fund for dear life.
A bit more of a bumpy ride than I was expecting. I see a lot have jumped ship!

1 Like

That’s what it looks like.

I remember that my first investor on NEW, although a really good guy, let me go as soon as I recovered the DD of the day he had invested :disappointed_relieved:



Oh really, ah, that’s a pretty lightweight investor then.
Maybe he got scared by the frightening way the VaR of the strategy is dropping rapidly because he has been burned badly by this before as he understands that this situation could make the Darwin very volatile and lead to a large loss or drawdown.

I’m sure it is no reflection on the trader behind the strategy, who believes in strict risk control.
The problem may be with the Darwin replication factor. Hmm, haven’t I heard that before somewhere…

1 Like

Indeed a smart and careful investor :wink:

It is a pleasure to see that I am not the only one who does not accept the argument “whatever happens, the Darwin is subject to a 20% VaR”.

I remove myself most of my investment on NEW.