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

[Podcast] [#8] How DARWIN risk is managed

Hi Community,
Here comes the 8th episode of our series “Trader Nation”!

https://blog.darwinex.com/podcast-8-darwin-risk-managed/


##EPISODE SUMMARY


We start explaining why VaR (Value at Risk) is a proper measure of risk. With 10% monthly VaR at 95% confidence, investors can go to a desert island without Internet next month, knowing that with 95% probability they’ll do better than -10% and with 5% probability they’ll do worse than -10%.

So, whilst DARWIN investors are in the desert island:

  • The trader will have no incentive to change his risk
  • He gets no cut in commissions
  • He only earns on success
  • He’ll ruin his score by changing his game
  • Darwinex will control DARWIN leverage so that as DARWIN investors know those are the odds
  • Apples to apples consistent with that DARWIN’s past
  • Apples to apples comparable to past behaviour by every DARWIN…

Otherwise, it’s all a noisy haystack that smart investors won’t approach.

And the way is to build up our stack from:

  • A trade -> trade level risk
  • A position -> unit measure or risk
  • A strategy -> proper measure of risk

##SEND US YOUR QUESTIONS +34 650 21 11 36


We count on you to SHARE massively this podcast and spread the word, Traders!

5 Likes