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WLC - Scientist

Hello everyone,
I am the person behind DARWIN WLC.

The strategy I am using is based on my own algorithm. I also pay attention to classical price action.

My trading results have been imported in November 2019 and it takes some time for me to adjust to Darwins and how they work.
In my imported strategy I used aggressive position sizing (earned >200% in 2019).
Here in my Darwinex underlying strategy I am trading more conservatively and plan to keep it that way. It looks however that the risk management component significantly cuts my DARWIN`s position size. WLC profit in December is 2.69% so far meanwhile my account profit is 16.46%. I will adjust my trading style to ensure more profit for investors.

Little bit more about me. I am a female with graduate degree in economics which to some extent helps me in my research projects. I have been trading since 2013. Apart from my personal trading and WLC management, I am working on a platform development where investors would be able to copy my trading choosing their own risk settings.

Sometimes I publish trading ideas at tradingview.

In the next post I will talk about my Darwin’s attributes.
My telegram is here.
Welcome to invest in my DARWIN!

6 Likes

Hi @Scientist, welcome to the Darwinex Community, and congratulations for the profitable 2019.

Yup, your strategy trades at a Value at Risk of 36.87% (at the time of this writing). Darwins are normalized to 10% VaR, so the profits for your Darwin is divided by 3.687. If you can get your strategy to trade at 10% VaR, you should see similar returns on your own account and the Darwin :slight_smile:

Is this strategy trading fully automated? Or are there any discretionary decisions taken as well?
And if it’s a mix, what would you estimate the proportions would be? Like for example: 80% full auto and 20% descretionary decisions.

Hi @Renko,

thank you!

My Darwin profits are divided more than by 3.687, so there is something else here. Probably Darwin just closes some positions earlier than I do.

My strategy is not automated yet. The algorithm calculates dynamic support/resistance lines. These lines identify zones with good trading opportunities. Then I look at the situation and decide whether to open a deal or not.

I guess automated version of my strategy would produce more signals than I actually trade. Still it is potentially quantifiable and I am working on it also.

Well, your VaR isn’t constant at 36.87 either :wink:
On 11-Nov, your profits would’ve been divided by 5.379 for example.

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If you look at the Rs attribute, you see the development of the VaR which shows your replication factor related to the Darwin‘s fix 10%

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In the end of November my DARWIN had D-score 49. During these three weeks of December D-score has nicely grown over 61.

I trade more accurately for Darwin than in my original account thus most of the attributes improved relative to migration date. The only mistery for me is my low Os score. My openings are not particularly precise but I think they deserve at least 3-4 points. For comparison, here are entry estimates from myfxbook monitoring:
image

Couple of them are really bad, but the rest are average or good with two of them even over 90% accuracy. It is quite representative for my account. Why so low Os for DARWIN? No idea…

Nevertheless my other attributes are good and my Darwin already earned two labels from Darwinex: ‘Good Scores’ and ‘On Fire’ (the best 3 months return with moderate drawdown).
Great.

Have you read already how it works?

1 Like

Yes, I have.:slightly_smiling_face:

December 2019, summary:

WLC’s result for the month is +4.06%.

The underlying strategy obtained +21.82%

Now I am waiting for Darwinia results to be announced.

Happy New Year!

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December, DARWINIA:

WLC finished at 55th place and got its first money allocation.
Last month also I submitted the 2nd deposit so my account doubled. If (when) I win Darwinia again the allocation will be more substantial.

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When my darwin migrated, its D-score was 48.
Now it is already 65!

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January has been very hard for me so far. I earned 15.4% in my account and it produced only 2.7% in my Darwin. I have no clue how Darwinex is doing it. Their methodology is so twisted that it is really difficult to work with it.
My VaR is falling (though I keep position size constant), it spoiled my score. But lower VAR did not help yet to adjust Darwin’s profit with underlying strategy as I expected.

I came to the following conclusion. For now I should somewhat modify my approach to trading to make it more beneficial for investors. Particularly, I will try:

  1. to open only one deal at the time. It seems that Darwinex distort simultaneous trades in unpredictable manner such that they provide minimum profit.
  2. to focus only on majors. Yesterday I closed GBPAUD trade with 0.25% profit on my account. Darwin got 0.01% profit (25 times less!! Why??)

In addition, I opened a new trading account at Darwinex. I will create another darwin after some time and then I will compare performance of the native darwin vs imported strategy. probably it will give me some additional insights.

Of cause, I keep trading WLC. I still hope that in 2-3-4 months more situation will stabilize and DARWIN will be more similar to the underlying strategy.

5 Likes

Congratulations on your great numbers, @Scientist!

No worries, there is nothing wrong with the methodology.

As can be seen on your trading journal (see screenshot below), even if you keep your trade size constant, you have reduced the amount of simultaneously open trades from 10 to 1!

In just a few months, you have reduced your D-Leverage from up to 70 to as low as 4. This article on our blog should help to understand how to interpret your trading journal (design has changed but the rationale remains the same).

Also, if I may, I would HIGHLY recommend watching the videos on Risk Management available on our Youtube Channel (the ones numbered 1 through 8 below)

.

If interested, we’ll be more than happy to jump on a call / Skype session to explain the above.

Keep up the great trading and the prizes will follow sooner or later!

Best,
Ignacio

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Amazing results so far, very well done!
Adding to Ignacio’s comment, I suggest this video in particular: https://www.youtube.com/watch?v=hKsE652NDwA

By the way, you should get a fairer replication now that your VaR is leaving the 40-50% area :slight_smile:

Following your Darwin, good luck!

4 Likes

Hi @Scientist :wave:

In addition to what my colleague @ignacio and @FedericoSellitti just mentioned above:

As we speak, we’re working on a series of video tutorials dedicated to how the Risk Manager works.

This new series will help shed detailed light on how the Risk Manager modulates risk in order to achieve a maximum target VaR (95%) of 10% for investors in DARWIN assets.

In the meantime, I encourage you to watch the following tutorials to develop an understanding as to how Darwinex measures:

  1. The risk of any of your positions - this is what is referred to as D-Leverage.
  1. The Value-at-Risk (VaR) of your underlying trading strategy using the D-Leverage of your positions as calculated above, and their Duration - please watch the videos below for more precise detail as to how this is done, over what reference periods data is considered, how it’s then used, etc.)

Important Notes:

As a trader (and especially if one is also a DARWIN Provider), we believe it is essential that everyone understand these concepts in order to make sense of how and why DARWIN evolution may differ from Underlying Strategy evolution, what is going on behind the scenes, and most importantly why it’s going on that way :slightly_smiling_face:

I recommend you spend some time studying the above, as it will make the next series of tutorials on The Risk Manager even more meaningful and clarify in great detail how the Risk Manager functions.

We’re putting in a tonne of effort to help all Darwinex users understand the machinery behind Darwinex, in structured, easy-to-digest tutorials :muscle: All we ask is for your time in studying them.

Doing so will assist your understanding as regards your initial concern in the Quote from your post above, that risk isn’t a by-product of simply keeping a constant position size :bulb:

On that particular note in fact (risk vs position size debate), I encourage you to watch the following tutorial too where we distinguish between “risk” and “money management”:

All the best!

8 Likes

hi,
in addition to what they have already explained to you, i tell you that your max var in the last 6 months, is 54%. In this moment your underlying strategy have a var of 17.8%. So, how is the var of your darwin?
you have to do this:
17.8 / 54 = 0.329
0.329 * 10% = 0.0329 = 3.29%. Your darwin would work at vat of 3.29%, but the min Var is 5% (the darwin’s var it can be min 5% max 10% with new rules), so, the var of your darwin is 5%.
for now you have 2 parameters:
underlying strategy var = 17.8%
darwin var = 5%
the ratio is 3.56, so if you gain 0.25% in your underlying, the darwin gain about 0.07%.
I hope that it is all clear

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@FedericoSellitti,

thanks, I will definitely watch this video.

you should get a fairer replication now that your VaR is leaving the 40-50% area

Yes, it is what I expect. So far I do not see any movements in this direction. The methodology reacts slower than I expected…

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@ignacio,

thanks, I will definitely watch all these videos. If I have any questions after watching it I would be happy to talk through Skype.Thanks for offering!

I imported the strategy from an account with high leverage (1:500) and larger deposit, so I had multiple trades there. I see the methodology still takes this history into account. I just hoped that those effects evaporate faster…

@integracore2,

thanks, I read multiple articles here but did not pay attention to any videos yet. I will do it now!

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Sounds good, @Scientist

Just give me a shout here or at ignacio@darwinex.com anytime you need assistance.

Keep up the great trading, your numbers look very promising!!

Best,
Ignacio

1 Like

January 2020, summary:

WLC: + 3.21%
Underlying strategy: +18.70% (max drawdown -3.88%)

A good beginning of the year.

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