Darwinex was about providing a quality investment platform that would help investors make quality decisions. I am certain statements similar to that have been shared in the past several times. Not exactly with the words I chose, but that aside.
After this discussion I wondered how the stats were with another broker I am very fond of. 69% of traders were losing money with them. I looked up another broker and it was 70%. How come 77% of traders/investors lose money with Darwinex despite all the statistics/tools etc. that other brokers don't have? That is the frame of the discussion I'd like to have. Something about all the tools offered by Darwinex seem to indicate that they don't add value at the end of the day.
Sure, I'd be making some assumptions here (Darwinex attracting bad traders/investors, but weren't all those fancy detailed statistical tools supposed to improve the quality of decision making?).
To me it is not about being right, but rather about why Darwinex traders/investors do not perform significantly better than traders that prefer some other brokers, despite all the tools offered by Darwinex? And again, that is with emphasis on the "despite all the tools offered by Darwinex" part.
One plausible explanation I come up with is that most quants think that quantifying everything is the key to success, while they do not see they are looking at correlation between variables and conduct fancy statistical tests to support that their evidence that the statistics are reliable enough for inferences about the results, while they merely have used complex statistical models that did nothing more that allow the data to survive the fancy/complex formulas. In very brief terms what this boils down to is that quants in reality are terrible traders most of the time and they try to justify everything with quantitative models that only vary in complexity but in the end result in wrong inferences about the data and the models. Practically I say that Darwinex is emphasizing statistics/data like most quants do, obfuscating their poor understanding of the markets. And it is not just me, .... you'll be able to find posts online of hedge fund managers complaining about smart quants and their lack of understanding of the financial markets. I'm sure some quants over here can be placed in that category as well. (NO pun intended)
Personally at the last moment I stayed away from investing in Darwins. It is very hard to automate entries and exits in Darwins. You'll have to keep an eye on many Darwins very closely to get great results, as that is the only way to time your entries properly.
The API is a solution, but what % of Darwinex clients are capable of using/implementing an API? Not me, for sure. Sure, I could hire someone or ask a colleague. But if that is the case one would prefer to have an API implementation with some other broker that offers a fast amount of instruments. Hence, the API idea Darwinex came with will only make a good toy for a few quants over here, is my guess (NO pun intended); i.o.w. it is not practical for the fast majority of clients.
What would be a more practical solution that might be useful to a much wider audience at Darwinex?
Put all Darwins in MT4 as tradeable instruments, such that anyone can backtest their MT4 EA on them and run them live. Sure, that would be quite a few instruments, and I don't know whether that is possible for Darwinex, but it would allow less tech savvy (retail traders) to run their MA/MACD/RSI or whatever EA on Darwins and automate entries and exits. I think Darwinex could have a small pilot with 30 Darwins and see how that goes. Would it improve the % of traders/investors losing money with Darwinex. I am quite certain it will improve.
Just my thoughts..... hope it helps the discussion...