CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % 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.

{DARWIN API} Portfolio Optimization Service

We’ve released a Darwinex API based portfolio optimization webpage. To give it a try please:

  1. Go to https://www.i4cfinancial.com
  2. Click on the Solutions… Portfolio Optimization – English menu item
  3. Log in as darwinex@i4cfinancial.com with password: special
  4. Enter a string of comma-delimited Darwin symbols. Such as:
    ZXW,MMQ,FMX,NNI,NTR,OVL,ATL,DWC
    4a) You can also enter allocation weights like this: ZXW:30,NTR:60,ATL:10 Must add up to 100
  5. Choose DWNX as the Country
  6. Click “Optimize”
  7. See the Education via the green [?] link

Enjoy!

23 Likes

Wow ! Congrat !

Cool, the portfolio is already diversified enough with equal Weighted.

May be within a next version :

  • Sharpe for individual stock
  • Sharpe for initial equaly weighted
  • Using constraints (minimum alocation in % per stock).

If the user dont want to get rid of GTD in this sample (hi VolcanoFx, how are you ?) :wink:

5 Likes

And mine kept GTD but lowered the risk way down. It did remove NTR & LVS.

This is a very interesting tool.Thanks very much for making it available! :slight_smile:

4 Likes

The first Optimization was done using ‘Max Sharpe Ratio’. I just ran a second one using ‘Min Variance’ and the results were IMHO inferior to both the Original and the one Optomized using Max Sharpe Ratio. It did not remove any Darwins…

3 Likes

What’s improvment ? Wouahhh

+18% and a 5.6 Sharpe ratio !

3 Likes

I am loving this, good stuff!!

4 Likes

Hi CondorcetInvestment,

Thanks for the feedback. Yes, in this list of Darwins, equal allocations is quite impressive.

  • Individual Darwin: You can do this now, just type in a single Darwin symbol.
  • Presently, if you enter a list of Darwins, it assumes equal weighting. I do have parameters that I support for variable weightings, but the demo web page does not support these parameters at present.
  • In my version for equities, I impose a minimum 5% allocation, but I removed that for Darwin’s since commissions are not an issue. I could add it back in if there was a consensus.
4 Likes

Hi seastar3,

Thanks for the feedback.

Min Variance optimizations usually will lead to lower returns performance. And although it is counter-intuitive, a Max Sharpe Ratio portfolio can actually have lower returns than another portfolio - which is therefore better optimized for returns - but may carry more risk. BTW, I’m not imposing a minimum allocation weight, so I don’t remove Darwins - but the optimization just allocates them very small weightings.

Still a work in progress, so happy for feedback.

ManFromGlad

3 Likes

:open_mouth: sorry I was stupid.

Yes but when I try, there is no improuvment… :joy:

Ok… was kidding.

1 Like

I imagine the Optimization uses equal weights per year to the historical returns, but I would appreciate being corrected if that is an incorrect assumption.

I am considering adding KVL to my portfolio. I added it to my portfolio in the Optimization and it was only allocated a tiny percentage. My guess is because the average annual return may be low compared to others. The issue for me is his returns and scores have been considerably increasing each year but that doesn’t seem to be considered.

If my assumptions are valid I don’t think I would want to configure a portfolio only on the allocations presented by this service. Nonetheless I really appreciate having this available and being able to see the affects reallocation can have.

2 Likes

That is the reason why these kind of tools need the possibility to have a custom start.

2 Likes

Yes the Custom Start Date would certainly be helpful in many ways. But that still would not allow consideration for a Darwin with annual improvements over its full history. And conversely one that is getting worse!

Loving the creation of this great tool and thanks for sharing! However I have a question regarding the explanetion of things. Perhaps I misunderstood things in translation. Does ‘’ optimized ‘’ relate to a lower volatility and/or better sharpe ratio where improvement relates to the change in net ROI?

Thanks in advance and have a wonderful day.

1 Like

It is the Goal button : Max Sharpe or Min Variance (volat). Improvement relate on Sharpe.

1 Like

If you select Goal of Min Variance then it optimizes for lower statistical variance. If you select Goal of Max Sharpe Ratio, that returns the portfolio with the highest ratio of Reward/Risk. By the way, I am evaluated these metrics on daily returns. Net ROI is not one of the Goal selections offered.

4 Likes

Congrats and thank you very much for your app.

2 Likes

Is this tool still active?

@Karayel yeah it seems to be working just fine, I just checked. Look at the instructions, you gotta login with username: darwinex@i4cfinancial.com, password: special, then select DWNX as your country, then enter darwin names, etc.

2 Likes

Thank you very much!

1 Like

Thanks @yhlasx for replying. Yes, @Karayel, it’s still available. Enjoy.

1 Like