I will post this here because distinguished members of the forum @CavaliereVerde @Medialux @ignacio @VolcanoFX @GAlbano76 and @OldSchoolPT already discussed this stuff here,although this particular case of Darwin ZVQ https://www.darwinex.com/darwin/ZVQ.4.5# is much more sinister and has more dimensions.To tell you the truth it makes me sick.It all started at different thread which is popular right now and where we stumbled on this problematic Darwin by pure chance,so maybe you should read firstly there and connect it with this thread https://community.darwinex.com/t/increase-in-of-losing-clients/5154/127.
Since trader behind ZVQ is claiming that he and his team are institutional level trading fund in serious country ,member of EU-Spain,thing is particularly serious.
On 2nd of January this professional thought that it is very good idea to trade against Japanese Yen in strong trend downward in EURJPY.It was time of lower liquidity because trading in new year just started and pair was sitting on the edge of a cliff on daily and weekly charts just waiting somebody to push him over to break strategic support level and even more important trendline on weekly chart.In fact when our institutional friend entered,Yen already destroyed both Support and Trendline on H4 and for good measure,performed famous Kiss of Death on both broken strategic points.Nobody serious in forex trading goes into such setup against Yen which is notorious for such movements almost every year,without hedge or hard stop-loss or both.Yet,our institutional trader did just that and even more shockingly Darwinex didn't even bat an eye! No intervention on part of Darwinex risk management algos,none.
That is a 5min. chart of a drop of our institutional trader ZVQ.In pips it was about 500 pips from his entry which is not exceptional for Yen pairs and I witnessed it many times in my 12-13 year career.Darwin suffered 21% drawdown in that single position in a single day!No SL in sight,no Darwinex intervention and that was not a flash crash and no gap,so please spare me from asinine excuses on the part of Darwinex staff.I even watched 1min. chart and Darwin was bouncing for little more than 20 minutes! on the bottom and nobody thought it would be good to close the position to protect the investors from possible total ruin.Yen can go 1000 pips in such cases.Keep in mind that on ZVQ page we can find data that this institutional genious wins 85% of trades and on average gets 15pips in a winner and losses 45 pips in a bad trade.And here he was 500 pips down and no SL in sight.Where was his stop-loss?
You think this is as bad as it gets,right?No!It gets worse than that.
If you look in his history,you can see our institutional fellow had a really hairy week in Feb.2018.But this is just a side note.Here comes the kicker,Darwinex staff had an interview with our professional hero three weeks AFTER this disaster,end of Jan. on their Spanish podcast and provided Marketing boost for this chap,so he now has 55 investors totally oblivious to his achievements in last 12 months.It gets even better believe it or not.
Since average investor is apparently incapable of analyzing anything more than Equity curve(always Line graph!,Godforbid if anybody switched to candlestick graph to actually see what was happening during that beautiful rise) and monthly/yearly returns together with DD and,since we are here at Darwinex,D-Score for good measure.That should protect us from nasty surprises,right.Right?So I went that route to see if I would be able to dodge that turd only by looking such data and listening to good advice of our Darwinex friends.
Equity curve,Line graph remember!,beautiful.
Monthly/yearly profits solid.
D-Score 71,6 excellent.Wait a minute,how he got that high score with such dangerous stunt only one month earlier?He is even listed in prestigious category Good Scores where only best quality 92 out of few thousands Darwins are,WTF???OK,never mind ,it gets better believe it or not.
Drawdown,oh boy.On general page of all Darwins where everybody is scanning for new investments we will pick data for DD for 3,6 and 12 months periods for our institutional hero.I will say nothing ,let the picture speaks for itself:
DD 7,10% for last 6 months.It is similar for 3 and 12 months.I don't know what to say.
For now,I will not report this whole thing to FCA.I am very disappointed,I just came from Alpari.I don't now...false data,misleading quality score,no security measures in place by asset manager,criminally irresponsible marketing at best,intentionally at worst...
I am so disappointed.Guys,what will happen to darwinex when darwins loaded with millions start blowing up and hundreds of deceived investors complain to FCA?Why are you so reckless?Why are you importing crooks and/or impostors in your company instead of patiently building your traders from scratch?What are your security algos preventing if they cannot stop such stupid trading?Why don't you listen to good people who are pointing to huge problems right here in your forum-in last two weeks I have read thousands of posts here.Why the Hell, you don't implement circuit breaker on Darwins,just as there is margin call on individual traders accounts.Trader that losses 5% of your investors money in single day should be stopped mercilessly,no questions asked!Shit!