Really It is a topic that deserves their own debate (perhaps @CavaliereVerde could help me to move this post to another topic where It has been debates or to another new one )
I would like that someday nobody had to think in asking that question.
Darwinex has made some good actions to minimize these behaviours, as holding acessible the darwins closed. But in my opinion is not enough.
When traders close a darwin to open another, their reliability start to decrease.
It is worse when the provider had investment, and after a drawdown decides to close the Darwin and open another, but the worst is when decides to close with investors inside yet. Here It is not only the reliability of the trader, also suffers the reliability of DARWINEX perjudicing the hole community.
There are several reasons to decide to close and reopen:
Mith of drawdown chart to attract investors: Then they need to close because “there will not be investors to this chart”
Drawdown of dscore: the DD does to go down the performance IA (Pf), consequently the dscore. It makes more difficult to get prizes from DARWINIA
HIGH WATER MARK INVESTORS: If the Darwin got performance fees, and after appears the DD… they will have to work free until new HWM. But not only this, often the DD comes with a fall down of investors that probably they will not come back until new high appears, then really they have to work more time free than the time to new HWM strictly. I see the close and reopen, from this point of view, as a “small fraud” to the investors.
HIGH WATER MARK DARWINIA: Something similar to (3) happens with Darwinia, even because Darwinia also used to invest in highs, and the fees comes the new highs after the highs… Not being inusual that comes DD with maximum investment, falling down hard the HWM if they are not able to recover DD in the investment period. In this case, the “small fraud” would be with Darwinex.
Considering last, I see that the cost of close and reopen is very “cheap”, against the benefits to re-start and wait 12 dperiod, even better in some cases work in parallel both darwins.
I am not thinking in giving back fees, I miss more actions from Darwinex to motívate traders to create longer trackrecords above 12 dperiod.
I see important to take actions to try to finish the period of traders and investors of “searching for the Holy Grail”, and overcome to Next step.
I think that these actions could help all types of investors:
Those who are looking for reliable traders to invest darwins “buy and hold”: more market of long trackrecord helps to forget short Holy Grail, and filter investable darwins in the long term
Those who want to trade darwins: more data is important, even in those darwins that could seem worse but perhaps have more inefficiencies than other to explote.