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IDT - BenHardy

Hi wilko,

Thanks for your message.
Darwinex risk engine “normalizes” the risk of any DARWIN, that’s true. If the underlying strategy is very consistent and reasonable regarding the type of trading, sad engine’s “distortion” of the original system will only be very small. So if the respective trader varies the lot sizes e.g. depending on probabilities of specific trades to become profitable, this shouldn’t be a problem. The same applies to a portfolio of startegies e.g. including day- and swing trading. The intervention of the risk engine however will become stronger if the trader in rare cases utilizes unusal big lot sizes. Even if this may be profitable in the long run, the engine will consider this as exessive risk, no matter how big said position’s sizes are in absolut terms.
Darwinex’ risk engine however has issues if the underlying strategy abruptly changes or the trader makes a big withdrawal / deposit without adjusting the lot sizes he normally uses. Practically speaking the automated risk manager system improves the reward to risk of most DARWINs, some of them however are losing edge (more or less).
The more consistent the trading is, the better the risk engine can work…

Hope this helps!

Best,
Ben

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Hi @BenHardy
What about IDT current VAR : 0.5%
Is this your target or it is due to some kind of transition?

Hi CavaliereVerde,

After many daytrading strategies got into trouble in 2018 I decided to stop my personal respective trading and developed a system that considers higher timeframes. So after my past daytrading followed by a longer pause, Darwinex’ risk engine is facing now a totally different strategy on IDT. Furthermore said new strategy averagly is much more volatile than in the last weeks (since “live inception” after the pause). This leads to different types of distortion regarding the risk engine’s impact on IDT. It’s hard to predict when the VaR measured by Darwinex will reach a halfway consistent and reasonable level. I’d say the VaR of the underlying strategy should be about 1.5 % in the long run if I don’t change the risk profile anymore.

Best,
Ben

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IMPORTANT UPDATE on 25th of April 2019:

Due to technical problems I unfortunately must stop IDT (again) and solve the issue. Until further notice I recommend to withdraw your investment from this DARWIN. Trading will resume as soon as the respective EA has been fixed (1 - 3 months). Please keep IDT on your watchlist!

P.S. Please note that the original strategy made a small profit since inception in mid of February 2019:

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