Although I certainly endorse the “skin in the game” concept, you have incorrectly assessed what the most influential motivation is for money managers with good DARWINs. You’re not going to invest in a poor strategy with under $500, so I won’t comment about that situation.
But with money managers who are really growing and improving, if they want to make a living out of trading and asset management, then they must continue to keep making New High Water Mark so that they can continue earning Performance Fees.
This is the biggest pressure on us. And this is what we lose (much much more than capital) if we experience a drawdown of over 10%. It will no doubt take double the time to recover from those drawdowns and to be paid performance fees again.
The capital I lose in my trading account is a much smaller concern to me and other money managers.
That’s exactly why I maintain trading accounts at 5 different brokers.
They are always the ones who win. So I choose to keep them honest and to beat them at their own game.
I lost money for too many years, and now I’ve learned how they profit and I want everyone else to know.
A Robin Hood of sorts. That’s just life for me. It’s who I am.
I am comfortable Outside the Box. Where the world can be more equal. Where all can participate in the good things of this world. Where all have opportunity to improve at equitable velocities / trajectories.
Where values such as compassion, fairness, the common good, sustainability, and using more of our time on parenting, being a good partner, taking care of my health, and being a better friend.
Thanks for your messages, @OutsideTheBoxHK!
I would definitely recommend to see the new prize scheme next week. Given your current equity and score, you’ll be able to manage +100k in Darwinia in a few months.
The time you have put to get into our stats will be worth, I am 100% sure!!
But with money managers who are really growing and improving, if they want to make a living out of trading and asset management, then they must continue to keep making New High Water Mark so that they can continue earning Performance Fees. This is the biggest pressure on us. And this is what we lose (much much more than capital) if we experience a drawdown of over 10%. It will no doubt take double the time to recover from those drawdowns and to be paid performance fees again. The capital I lose in my trading account is a much smaller concern to me and other money managers.
I understand where you are coming from, but still the risk to yourself that you are describing is the money you only have “in potentia”, whereas my risk is the very real money I already earned.
When you risk large amounts of capital of your own, trust in you increases. Your motivations might be different, but I don’t trust your word for it, I trust your money!
A post was merged into an existing topic: A proposal for Darwinia
Simple, a trader with 5000 will be encouraged to concentrate money and quality in one darwin instead of ten.
We have ~30 new darwins every week, investors need quality not quantity.
Well this is all a gamble.
They want professional investors right? Like with millions to invest.
The average investment is $3000, which is severely lacking.
I’ve seen how much you’ve made so far in performance fees, and honestly I make that much in Trade Copying in 1.5 or 2 months.
It’s a long journey, but I don’t know if this model is going to really break out to the next level.
2 years ago the averge investment was 500 , now it is higher because the quality of darwins is higher.
So, this is what we need, higher quality.
7 posts were merged into an existing topic: Mql5,zulutrade,myfxbook etc,
I hope you had a nice weekend. Just a quick FYI, if you click the “i” button in the DarwinIA section you will see the new prize structure and the relevant multipliers.
Also, when you are logged in and check your status on the leaderboard, you’ll be able to see your potential prize in terms of equity, the relevant multiplying factor and the min. equity needed to aspire to the max. prize given your current position.
May I thank everyone for the feedback provided, we will study the implementation of some of the measures suggested as we agree there is always room for improvement!
I can’t find the right picture.
That’s nice to see! 500.000€/month more in allocation and twelve more darwin that will win at least 30.000€ (with as low as 2000€ of equity).
Need to see a change also in this direction: good job!
Hello. Could you tell me, will the fixed minimum equity remain at the beginning of each month? In other words, I wanted to increase my deposit by November 5, but I did not have time, I was fixed at 2000$, but if I increase my deposit during the month, this will not be considered in the current month? It may be worthwhile to think about this issue, although they will probably use this and withdraw funds after receiving the grants. Hmm…
You are perfectly right, this is the reason I was asking more time to comply.
Try Update Web Page with your browser.
The minimum during the month…
Hello Darwinex Community,
Just my 2 cents. Trading is a pure mental game. If trader is managing 1000 $, have to behave the completely same way to manage 10M. Is this what happen ? well not at all. In my humble opinion the major difficulty is “traders” look at $ instead of %. The other very important aspect is the two ambiguous sentiments that trader fight all the time - greed and fear. So is the trader´s equity an important factor ? yes and no. Is more important to ask - Trader have the ability to manage large amounts with same behavior ? Here in my opinion is the key.
The prerequisite of being able to manage other people’s money is to be able and willing to manage yours.
completely agree @CavaliereVerde and here is a good human example that reflects what we are saying :
People hate losing money, more than they enjoy making money - This is called loss aversion or Prospect Theory (psychologist Dr. Daniel Kahneman won a Nobel Memorial Prize in Economics for his work on this subject). The theory boils down to a single basic concept:
The perceived pain derived from a loss, hurts significantly more than the perceived pleasure derived from an equivalent gain.
So putting it in relevant context, earning € 1000 doesn’t create nearly as much joy as the pain created by losing € 1000. For most, this emotion is just natural human nature and interestingly enough is even evident in other species.
It’s ironic but because of this emotional imbalance, investors are more inclined to avoid risk in a “gain scenario”, while in a “loss scenario” we are more inclined to seek it out. This amplified pain as a result of losing money significantly influences investors and INHIBITS the ability to make reasonable investment decisions or commit to investment plans. This is perhaps one of the most important factors to understand when designing an investment strategy for investors.
I agree. On my side I feel less pleasure when I win 10 000 bucks that the pain I feel when I win only 1000 (as I expected 10 000).