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 …
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.
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.
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
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.
Thank you very much for your explanations, I understand better now