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Why results of my new Darwin are not the same of my account?

Hello,
I have my darwin that was created two days ago and the performances displayed are totally different from those of the underlying account.
On my underlying account, I have a return since the beginning of +1.93% and the darwin that has just been created shows a loss of -3.22%.
Why is Darwin’s performance not the performance of the linked underlying account?
Can someone explain to me please because I am lost …
Thank you

https://community.darwinex.com/tags/var

enjoy the reading…

I’m sorry but I just saw the topics and I do not see any explanation: - /
Help to better understand please?

Darwinex takes traders/trading strategies, and converts them to investable assets -> How? Via their own proprietary risk manager. They “equalize” risk of all Darwins to 10% per month, something called VaR - Value at risk, 10% -> meaning 5% or less chance or losing 10% or more.

It is really a long topic, I suggest watching educational videos and past webinars.

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Thank you, I’m going to see these educational videos, I naively thought that the darwin was simply the copy of the account, I’m wrong.
So, if the algorithm is confidential, it makes it very difficult to know why Darwin returns a negative return and how we can improve the score especially if the underlying account products are constant.

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Keep in mind that I don’t manage a Darwin of my own, that said, if you keep your risk stable and make profits, you shouldn’t worry about the rest, i think

Dear @YesWeCan,

Thanks a lot for reaching out and congrats on your recent DARWIN’s creation.

Looking at your system (I reckon we are talking about MHZ, I can see that you tend to increase your risk / exposure when your trades go South.

These martingal-ish practices are replicated with caution by the RM, which is one of the main reasons behind your strategy’s and your DARWIN’s differences.

I hope the following article proves helpful: http://help.darwinex.com/darwinex-for-investors/darwin-vs-strategy

If interested, we’ll be happy to arrange a 1:1 Skype session to explain this in detail.

Kindest regards,
Ignacio

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Thank you very much for your explanations, I understand better now :slight_smile:

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