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.

Why does Darwinex not step in to stop the losses?

I have been using a demo account for around 5 months. This month alone I am showing a loss of -18% mainly due to HFD and SCS. 5 months ago I thought I was on to a winner with Darwinex. Invest 50K use double up margin sit back and watch the profits come rolling in.

Every trading strategy can get a bad run but HFD and SCS are beyond a ‘bad run’ The more I look at the chart the more it looks like a Martingale despite the claims. I am surprised Darwinex have not stepped in to stop the losses.

I am now rethinking the whole Darwinex idea. It really is pushing money into a black hole. There is no transparency as to what trades are being done. Neither the price levels or the amount of contacts. For that reason I won’t be using Darwinex to provide my pension.

I have been an active trader for may years and I have made some big losses in the past. Dawinex appealed because I was handing over the discipline to third party in the belief that they would be more disciplined than me. Hmm seems some are even less so.

I will go back to my own trading but leave the Darwinex demo account running.

Thank god it was only demo.

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I am surprised too about Darwinex because it is gonna make a confidence crisis among investors, for me it was obvious on the last sharp drawdown and sharp recovery of HFD compared to the slow “winning” equity curve that he was lacking proper money management skill and got lucky till now.

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Hello there @fpDarwin

Thank you for your post and welcome to the community.

Darwinex does not step in in any losses. Nor should they.

I guess you are referring to the losses on HFD at the moment, right ?
See Darwinex as a provider which connects the trader with an investor (like yourself)
Darwinex is not responsible for any gains or losses by any trader.
The only thing that prevents an investor from losing is their Risk Manager (and the trader him/herself ofc.) If a trader is trading with a high VaR then the Risk Manager kicks in and prevent investors from loosing that much.

For example: BUX was a Darwin here at Darwinex, but he was trading with a high VaR for a moment. Then he got margin called but the investors did not loose it all, yet they lost a lot.
The Darwinex Risk Manager kicked in and prevented any (more) losses.
That is the only time Darwinex will “step in”.

Hope this answers your question.

Kind regards,

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Another thing: You can always set a stop when you follow a Darwin. To limit your downside

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It is up to investors to decide if a curve is lucky or too good to be true.

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I am confused a little by your reply.
You state:
Darwinex does not step in in any losses. Nor should they.

and then later :
The Darwinex Risk Manager kicked in and prevented any (more) losses.
That is the only time Darwinex will “step in”.

Which is it ?

Excuse my Darwinex inexperience but I inferred from the Risk adjustment metric for which HFD has a score of 10 that this offered protection from a wipeout. Or does HFD set the parameters at which this kicks in.?

The monthly loss is around 17% for Feb but the VaR is 7.46 % - again sorry for novice knowledge but I would have thought these two numbers were at odds with each other

I also note that some investors seem to know which instruments are being traded and when and size. How do they know this and more importantly how/where can I know this ?

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Or am I supposed to be the risk manager by setting stops ?

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Just a friendly advice and do not take it the wrong way. Stay out of Darwinex. At least do not invest real money yet.

From your posts it is kind of obvious you have no experience on analyzing darwins at all. Also, for some reason you think there is a “free lunch” so to speak on this platform. That is a dangerous combination.
If I was you I would start by reading this forum and watching all the youtube videos and playing with the demo accounts for at least 6 months.

Good luck.

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Instead of saying somebody is not smart enough, you can also take the effort to explain it. Or don’t you have the answer? This is not helping anyone and your reply message is bloated by arrogance.

I 100% agree with fpDarwin that the explanation given earlier did not make sense as it was contradictory.

Furthermore. The whole idea of copy / social trading is that somebody else does the work and has the skills and we do not have to spend days ‘analysing’ Darwins (or forex) as you advise. The beautiful thing I thought to see in Darwinex is that they provide sophisticated indicators and they take more control than the wild west-platforms like Zulutrade, to prevent this kind of cr*p from happening.

The implosion of HFD has nothing to do with ‘being able to take some losses’, it has passed that. If this what just happened seems to be a possible scenario, Darwinex will not work for me; having to keep this kind of major crash scenarios in mind. I still do think Darwinex is the best platform I have encountered up to now, but I will stay out.

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That was my idea 7 years ago when i started investing traders on eToro.
Unfortunatelly it does not work.
Darwinex has better technology but is not enough to find true traders.
Thousands of hours analyzing darwins are not enough to make money.

I am not investing HFD but -15% is not an “implosion” , the average DD of darwins is 25%, and you know it after years studying the asset class.

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Are you talking to me?

edit: I guess you must be because I do not see anyone else that you might be talking about. So let me answer to you Darwities. I see you have trouble reading and understanding. That is OK - it is time to search for the “mute” function on this forum.

edit #2: I think I have found a “bug”. The “ignore” function returns the message “select a timeframe” that I am sure I select right, The “mute” function seems to work though.

eidt#3: It seems neither mute not ignore works. Oh well

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Hi CV,

The fact that the 2.5y DD was only 9.5% and it goes in only a couple of days to -15% is worrying as it comes so quick and out of the blue. In that sense I classified it as such.

So it seems also you as a veteran are not so positive about social trading, unfortunately…

Can you find me a profitable veteran? :smiley:

The density of trackrecords produced by lucky or “not so honest” guys is so high that investing true traders is more diffcult than being a true trader.

Many call it quality, after 7 years I call it luck. :wink:

Ok guys , keep it civil.
I appreciate very much asder34 response. Because he is right. I just chucked a load of pretend money at what looked like good steady return Darwins over a long period.

I wish he had gone in to some detail , but as in most things in life you have put the homework hours in.
Just to add I have been doing conventional self trading for over 40 years so I do know a bit. I concentrate on options at the moment for a few reasons. I make consistent small profits and I don’t have to spend my life glued to a monitor watching every tick. You may say an EA would solve that problem. Well I have developed EAs (I am a C++ coder by trade) and that has proved to be very very difficult - not the coding thats easy but making consistent profits is the hard bit.

Darwities - I also agree that the idea of copy trading is that I am paying someone for their expertise in trading. 20% is not a small fee.But it is really no good at all if they have a system like this case where a drop of 18% in one month occurs. In fact it was over a couple of says. Specifically taking a position on a Friday and waking up on Monday to a big loss and compounding it by adding to a losing position is naiive beyond belief. This Darwin is controlling 6 million - even bigger than my own :slight_smile:

So to copy/social trading. Yes I probably was seeking a Utopian way to make a good return. And as another poster says if I have to spend hundreds of hours trying to analyse Darwins then its pointless. I may as well spend that time developing my own system. At least in my system I know what I’m trading , size time and instrument. If there’s one question I would like an answer to is why someone would hand money over where you do not know these things.

I thought that the metrics and point scores were a way to determine that a Darwin is behaving correctly and responsibly and I totally misunderstood the Ra metric. To be honest I still don’t.

Is it actually possible to analyse a Darwin at all ? As far as I can see the only visible thing is the performance curve over a long period.

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  1. Investable attributes and their chart
  2. Assets and timeframes
  3. Trading Journal

There is a lot to analyze beyond Return and DD, and if Darwinex provides this stuff it is beacause it is necessary to invest.

Thanks CV - Have I missed something. How do I access the trading journal ?

Or indeed Assets/timeframes/Investible attributes

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Of course. Start by reading about every darwin metric and the way it is calculated. If you are looking for a “shortcut” then maybe the darwinex training course that was on sale some time ago (150E or something like that) is a decent start - it has helped me. It goes without saying that if you put the time in this forum/vids you might not need to buy this.

Average guy arrives and on the first page finds a couple of trackrecords with high return and low drawdown, let’s invest sit and make money!
Why to waste time and watch 100 hours of videos on the youtube channel?
Why waste tme with the help section?
Why waste time on this community learning from other losers with years of experience? :wink:

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