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My approach to Darwin portfolio

I’ll write down my path to creating a successful Darwin portfolio or to implementing exit strategy.
I am little bit skeptical if this is possible but maybe worth a shot.

Beside trading I have few years experience in picking successful sport tipsters. But my final results/thoughts aren’t that satisfying.

I’m hoping for buy and hold strategy. Trading Darwins have no real logical reason - I’d be glad to be proven wrong.

For now I’ve briefly selected 25 Darwins based on d score, earnings, yield curve.
The second step is to filter out those who are really worth to invest.
And implement some exit strategies for both successful and a stop loss scenario.

I’ll make few rounds of analysis to filter out the best Darwins. So far in my second round are:
CBY, KVL, ZVQ, ACE, NTI, YZF, ATL, THA, GAF, FEG, STV, SYO, JMC

Still need to learn alot more about the system, like do some research on DWF/ DWC and rebates.

I didn’t perform any backtests so far. I only did some research of other people here from the community to filter out the Darwins who survived

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Don’t forget to consider divergence when considering Darwins to invest. JMC, for example, has a current monthly divergence of -2.85% so it would need to make ~34% yearly profit just to compensate for divergence :astonished:

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Thanks for the heads up!
I am fresh to analyzing divergence as well. Probably this will vary during 12 months. Maybe rebates will compensate that or investors will flee.
No final investments yet, just on my watchlist.

One thing I am considering that is 100%opposite to my initial plan:
If I should look for some fresh Darwins with huge returns and try to trade them before they collapse. To catch a part of a strong trend. On other PAMM sites there are astronomical monthly returns so this is tempting. Do you guys have any experience with that?
Maybe sth like 10% of my total portfolio would be good for such speculation. Yet it’s hard to implement.

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little offtopic:
I wonder if you could also get investors results and data on darwinex.
A whole new feature.
You search most successfull investors and copy their moves or analyze their enter/exit moments etc
you could auto copy an investor etc :slight_smile:

This has already been discussed in the past…:


I guess that sooner or later something like this this would be released.

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I’ll check this out, thanks!

Meanwhile I am trying to filter out some of my demo darwins to proceed to live portolio and I noticed something interesting.
I am looking into ACE
The underlying strategy had peak return at 21/07/2017 and didn’t recover from the dd. And the darwin is much higher now than it was on that date.
Also in 2018 only 5,15% profit so far - while the darwin has 21,33%.
Can you help me out with this?

Darwin re-adjusts VaR (value at risk) to 10% a month at 5% chance. Risk handling of Darwin can be vastly different from underlying strategy.

Say, underlying strategy trades 1M, loses 1% (-10,000), Trades 100k, earns 2% (2000) -> Net -8000

Darwin trades 100,000 loses 1%, trades 100,000 earns 2% (2000) -> Net 1000

Very crude example, and not very realistic, but enough to convey how such a thing can be

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Thanks, that helps alot.
But this is also problematic:)
Do you analyze this in your investments every time?

Not really. I don’t trade darwins, just buy and hold. When looking for darwins to buy, I look at darwin performance, not underlying strategy.

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I am tempted to buy SCN (sochin8). Although his divergence is 1% I have him on my demo account with +4% divergence currently. So I am not sure how to approach this. Should I deduct ~12% of his yearly results because of divergence or not.
There are some other cons:
-low LA but other attributes are great.
-not many investors capital (21k$ at the moment) - bigger capital should make divergence even worse

SochinS1 made 132% this year but because of darwinex VaR adjustments “only” 23%. Maybe if he adjusts some numbers whe results will be better here on Darwinex.
Will observe him closely for the next month or so

Interested in knowing more about what happened with the results as well. 132% to 23% is huge. His underlying VAR is 15% so not sure it is VAR related?

Edit: Never mind. Average profit is 2.5 pips. Guess divergence etc hits the Darwin pretty bad.

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@halbu0

From reading your posts I get the impression that you are very new to this platform and/or dont know some basics. If thats the case - I have been wrong before - I suggest that at this time you dont invest a lot of money here. Instead buy the investor’s course (178E) and plan to spend some time in this forum and in darwinex youtube channel. I hope you dont take this the wrong way - its just some friendly advice.

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Yes I’m new. No offence taken of course. Thanks for advice!
I am not planing to buy the course though. At lest not yet.
I will study some blogs/portfolios from the community. Yet I didn’t see great results so far but didn’t dig deep as well.
TBH I am still skeptical if there is a clear possibility to be successful in a longrun as an investor here.

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Exact!

It is diffcult to win but I am a social investor since 6 years and I can tell you that on Darwinex you lose much less than with other sites and in the meantime you learn a lot. :wink:

A course can save you some time but doesn’t replace live experience.

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Losing less is still not good enough though :grin:
Maybe social trading will be profitable in few years so no need to rush.
We can stay on the sidelines. At least some of us

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Today I made some investments. Exactly the opposite to my previous post about not rushing it.
It’s a pity that I cannot invest less (or more ) - I’d like to invest a tiny bit in a darwin just to test it in real live. I am also thinking about an incubation time for my new darwins on demo.
But creating new account for a demo portfolio is not that convenient.

One of my investments is [CBY] (https://www.darwinex.com/darwin/CBY.4.14) Also found on Alpari https://alpari.com/en/investor/pamm/363961/
Need to do more research on this trader because his thread is on fire currently(https://forum.alpari.com/index.php?/topic/113302-cyborg01-маргарита77). Again poor due dilligence before final decision.

I also have small issue with my bank - my USD transfers to Darwinex are very costly (intermediary banks do eurusd exchange or something like that - total nonsense since we are in EU) So I am thinking into switching to EUR account somehow

Other thing is that I am considering to use Darwinex as a trader to get those cool stats as well :slight_smile: Do you guys know any other similar analytics tools to work on your game?

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