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Real portfolio results by mrbeast87

When I found Darwinex, about 2 years ago, I was impressed. I really thought I had found a way to passively and easily have greater returns than what is typically achieved in traditional markets.

Browsing Darwinex was an eye candy. Darwins with great score and returns of +30% yearly! My expectations went through the roof.

I decided to skip the demo part and invest with real money. After all, this platform seemed very transparent and legit to me. Although my my opinion regarding transparency and legitimacy still stands, my profitability let me down.

After the end of first year my profit was around 9%, so things were decent enough. But in second year things derailed.

Currently, I have a loss of 20,72% (that what is shown in the percentage chart, but money wise it is a loss closer to 25%).

I tried several strategies over these 2 years. At first I was focused on Darwins returns. By hanging around here in this forum, I found that it would be better to focus on a longer native track record. Surprisingly, I achieved better results when I was focusing on profitable Darwins (I guess I was lucky).

Anyway, I think what made me loose money in the end was a combination of divergence + fees + some bad Darwins.

I decided to retreat and stop using Darwinex as an investment tool for a while. I will be around, as I find this is a very interesting platform with a great community.

Keep up the good work Darwinex Team! I’ll be waiting for the feature of being able to buy entire portfolios from managers :+1:

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@mrbeast87
Do you have a previous experience with investing in traders?

I had tried eToro 8 or 9 years ago, but I had terrible results, so I used it only 3 months or so. Since my experience was so bad with it, I never searched again for this type of investment.

Nowadays I only invest in ETFs and investment funds. I tried stock picking, but dropped it because I don’t really enjoy reading companies’ financial reports. I’m more of a passive investor.

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Yeah i dont think darwinex penalises divergenge enough under attributes. I guess it comes under capacity. Darwinex seems to consider market correlation as more important.

Imo perfromance should be showing actual performance of investors with equal prominence to gross performance. After thats why we are all here.

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Yup, I totally agree with you. I think that the biggest contributor to my losses was indeed the divergence. We have many good Darwins here in Darwinex, but as an investor they are not profitable because of the dreadful divergence.

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I dont’ think so, divergence affects very few darwins and has been a true problem only on THA .

The real point is that neither return neither DScore are good indicators of robustness and true edge.

Traders and brokers continuosly show above average trackrecords to impress investors.
Those trackrecords are not representative of the edge of the traders.

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Can you provide the list of darwins that you sold during the trackrecord?

Why sooooo many darwins? I could barely find 2 or 3 darwins that fitted my criteria: algorithmic trading (preferred - feel confident in quantitative analysis and strategies), long trading story, good profit/dd ratio, very low divergence and know more about the trader/strategy behind.

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I opted to have more darwins so that I would have better diversification and that way minimize risk.

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Regarding the divergence I was talking about… I exported my history from Darwinex in CSV format. I then multiplied the divergence column with the invested value column.

Summing the divergence of all investments I made, it accounted for -481,76€. If there was no divergence, I would have a total profit of 63€ instead of a total loss of -418€.

Am I missing something in these calculations?

Here is the CSV file if you want to do the math: mrbeast87 CSV history

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Thanks for making this history available. I don’t think you need to multiply the divergence with the invested value. Displayed Divergence should be the absolute value already. I am not sure though if divergence is already included in the total P&L or if you have to deduct it :thinking:
You are right that divergence was pretty high in your portfolio though.

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I was asking the list of closed darwins because im my opinion he was doing the same mistakes as me.
Buying shining darwins that were showing a return >30% on L1Y , being sistematically disappointed and selling low.
When you lower the expectations you start to trust the right ones.

Robust darwins return 7-10% annualized, it is not my opinion, we can see it on the Model Portfolio,
https://www.darwinex.com/investors/darwins-performance
everything else is luck/noise.

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11 posts were merged into an existing topic: Realistic Expectations

9 posts were merged into an existing topic: CavaliereVerde’s live portfolio