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Darwinex faq

  • #1
  • First Post: Jan 19, 2020 8:22pm Jan 19, 2020 8:22pm
Hi,
anyone using darwinex to trade?

does everyone that applies for a trading account, becomes part of their darwin / darwin provider programme? ie; D-score starts getting calculated, my stats get crunched by the company and get posted on the board?

or

can i opt out of it, so that i use darwinex solely as my execution broker with no consent given to company to crunch my numbers / ever allow anyone to copy trade


regards
  • #2
  • Jan 25, 2020 4:40am Jan 25, 2020 4:40am
Just a simple analysis of this type of business model reveals that it's a scam.
  • #3
  • Feb 21, 2020 1:29pm Feb 21, 2020 1:29pm
Quoting Bicarus
Hi, anyone using darwinex to trade? does everyone that applies for a trading account, becomes part of their darwin / darwin provider programme? ie; D-score starts getting calculated, my stats get crunched by the company and get posted on the board? or can i opt out of it, so that i use darwinex solely as my execution broker with no consent given to company to crunch my numbers / ever allow anyone to copy trade regards
You need to publish your account as a Darwin if you want it to be one otherwise, it's a private trading account.
May all your fits be loose.
  • #4
  • Feb 21, 2020 1:36pm Feb 21, 2020 1:36pm
Quoting Mingary
Just a simple analysis of this type of business model reveals that it's a scam.
Furthest thing from that in the industry. Extraordinarily transparent company. Recent partnering with Interactive Brokers: https://community.darwinex.com/t/int...-2020-1-2/6912
May all your fits be loose.
  • #5
  • Feb 21, 2020 5:42pm Feb 21, 2020 5:42pm
darwinex swaps are some of the worst.....due to the fact they dont b-book
  • #6
  • Feb 22, 2020 12:56am Feb 22, 2020 12:56am
Quoting endo77
{quote} Furthest thing from that in the industry. Extraordinarily transparent company. Recent partnering with Interactive Brokers: https://community.darwinex.com/t/int...-2020-1-2/6912
Thanks for the info, but that is totally irrelevant.
  • #7
  • Edited 3:10pm Feb 28, 2020 12:12pm | Edited 3:10pm
Quoting Mingary
Just a simple analysis of this type of business model reveals that it's a scam.
https://community.darwinex.com/t/bro...-series/7130/3

Most brokers go after traders likely to lose fast and give incentives for them to do so. Darwinex goes after traders who will hopefully trade long-term and hopefully provide some long-term alpha to their investors and give incentives for them to do so. Which one seems more shady?
May all your fits be loose.
  • #8
  • Edited 1:24am Feb 29, 2020 1:12am | Edited 1:24am
Quoting endo77
{quote} https://community.darwinex.com/t/bro...-series/7130/3 Most brokers go after traders likely to lose fast and give incentives for them to do so. Darwinex goes after traders who will hopefully trade long-term and hopefully provide some long-term alpha to their investors and give incentives for them to do so. Which one seems more shady?
"Darwinex" and others like it. aka social trading
Another scourge. Another piped dream fantasy. Another type of forex broker.
The "Leader Board account" is what is made public, but the real trading account could be a demo or such small amounts traded that it might as well be a demo. I dare you to find anyone who has made any money from investing into a Darwinex account.
The clue is in the name
Darwinex
Darwin: Natural Selection ... I guess the ex stands for ... extinction
Due to the Law of Averages, the naturally selected track records climb to the highest level and are published on the leader board for suckers to invest in or piggy back the trades (usually impossible to match the results) while the winning traders are still hot. After a short while the leader board accounts become extinct and are replaced by new ones and the cycle continues ...
Darwinex simply feeds from this ecosystem.
  • #9
  • Mar 2, 2020 12:20am Mar 2, 2020 12:20am
I don't blame your pessimistic view of social trading for which your warnings fit most all of them in general, however....

Quoting Mingary
{quote} "Darwinex" and others like it. aka social trading Another scourge.
Darwinex is arguably not even in that category. Here's the original vision:
https://blog.darwinex.com/social-tra...-free-for-all/
"Unlike copy trading platforms in the Forex and CFD industry (which replicate trades in a near one-to-one fashion) Darwinex performs the roles of asset and active risk management, protecting investors from unexpected risk outcomes through managing the risk of the trades to mitigate over leveraged trading." taken from:
https://en.wikipedia.org/wiki/Darwinex

Quoting Mingary
{quote} The "Leader Board account" is what is made public, but the real trading account could be a demo or such small amounts traded that it might as well be a demo
Noooooo... first of all term "Leader board" is typically referring to the DarwinIA challenge which is where Darwinex puts up 5 million EU of their own in to AuM to the top traders of every month which they (traders) can trade and earn 20% performance fees. Nope, Darwins can not ever be derived from a demo trading account. Underlying account size amounts under 10k are public (and over 10k account sizes just shows 10k+) and "small" trader accounts can be filtered out for investors plus there is a limit of how much prize AuM you can win in the Darwinia contest based on underlying account size.

Quoting Mingary
{quote} I dare you to find anyone who has made any money from investing into a Darwinex account.
You can easily find this warning on their site: "59 % of retail investor accounts lose money when trading CFDs with this provider. " Surely regulators would not allow this to be on the website if it wasn't true. Investing in anything requires some skill and research, you can check the forum for hints of how to be in the 41% of presumed break-even and profitable investors. I believe this percent will rise as more real alpha providers join Darwinex and as Darwinex continues to improve on ways to expose and penalize risky trading styles.

Quoting Mingary
{quote} I guess the ex stands for ... extinction
Pessimistic guess, nope, stands for exchange. Darwinex has been around since 2012 and with a recent partnership forged with IB, is probably not going anywhere any time soon.

Quoting Mingary
{quote} Naturally selected track records climb to the highest level and are published on the leader board
Darwinex uses a unique rating system and other tools to help identify and penalize risky trading behaviors:
https://blog.darwinex.com/new-formula-d-score/
https://help.darwinex.com/d-leverage

Quoting Mingary
{quote} extinct and are replaced by new ones and the cycle continues ...
Wrong again, the ones that do suddenly **** the bed are NOT deleted so investors can also study those and be more alert to the risks.

Quoting Mingary
{quote} usually impossible to match the results
The backtesting tool actually includes average investor divergence (lag) and performance fees:
https://blog.darwinex.com/darwin-backtesting-tool/
Also there is average investor divergence data for each Darwin and if investors are getting "slipped" by more then 1.5% (or less if set manually by the trader) The Darwin will become closed to investors: https://help.darwinex.com/divergence

Quoting Mingary
{quote} Darwinex simply feeds from this ecosystem.
May I please suggest a slightly more thorough analysis ?
May all your fits be loose.
  • #10
  • Mar 2, 2020 3:07pm Mar 2, 2020 3:07pm
Quoting Mingary
{quote} "Darwinex" and others like it. aka social trading Another scourge. Another piped dream fantasy. Another type of forex broker. The "Leader Board account" is what is made public, but the real trading account could be a demo or such small amounts traded that it might as well be a demo. I dare you to find anyone who has made any money from investing into a Darwinex account. The clue is in the name Darwinex Darwin: Natural Selection ... I guess the ex stands for ... extinction Due to the Law of Averages, the naturally selected track records climb...
I would say that Mingary was correct until now but with years passing more and more quality,verified 3-year track-records or older are accumulating there and it is becoming possible to compose a Portfolio of 5-10 generally profitable and reliable traders.I think it will take another 3 years for sufficient number of reliable traders to accumulate there.That is because some reliable traders already are at full capacity and can't take new investments.
Although Darwinex owners are by no means angels,they allow MT4 trackrecords that are totally unreliable,doctored,...imported on their site from other brokers and suckers invest in them ...Guys are running trackrecord farms at other brokers on cent accounts and then import the best looking to Darwinex and you know how it ends...Some even repeat that more than once and darwinex is OK with that.But at least they mark migrated accounts as such,so that only really dumb people invest in those.
On the other hand,their Competition Darwinia really looks like a scam for marketing purposes to attract traders from other brokers and incentivize them into overtrading and depositing large sums into their trading accounts.
I would say Darwinex is a mixed bag of some good things and some bad things.Time will tell.
  • #11
  • Edited 5:24pm Mar 3, 2020 1:36pm | Edited 5:24pm
Quoting Jugoslavija
{quote}On the other hand,their Competition Darwinia really looks like a scam for marketing purposes to attract traders from other brokers and incentivize them into overtrading and depositing large sums into their trading accounts.
By that logic any broker that has ever held a contest, given rebates or a deposit bonus, placed an ad or done any other marketing is a scam. Darwinex seeks and (provides incentives to) real long term alpha providing traders while other brokers seek traders from whom they directly derive their profits: https://community.darwinex.com/t/bro...-series/7130/3

Yes there is a limitation on account size for prize allocation but this is necessary and done in a fair way (small accounts can still win quite a bit of AUM, just not as much as a larger account.). If anyone can think of a better way to attract long term traders I'm sure their suggestions would be welcome.
May all your fits be loose.
  • #12
  • Mar 3, 2020 10:27pm Mar 3, 2020 10:27pm
Quoting endo77
{quote} You need to publish your account as a Darwin if you want it to be one otherwise, it's a private trading account.
hi endo, thanks for the reply, much appreciated.

btw is there any limit on the no of tradings accounts each individual can open? ie different base currencies
  • #13
  • Mar 3, 2020 10:58pm Mar 3, 2020 10:58pm
Quoting Bicarus
{quote} hi endo, thanks for the reply, much appreciated. btw is there any limit on the no of tradings accounts each individual can open? ie different base currencies
Sorry, not sure. I'd ask support ([email protected]) Each main account can have many trading accounts but the base currencies are always the same as the main account as far as I can tell.
May all your fits be loose.
  • #14
  • Mar 4, 2020 1:59am Mar 4, 2020 1:59am
Quoting endo77
{quote} Darwinex seeks and (provides incentives to) real long term alpha providing traders while other brokers seek traders from whom they directly derive their profits
I am sorry,that is not the case how their Darwinia contest works.Read again second half of the sentence you quoted from my post.They are broker first and everything else second.They need people to trade as much as possible.
If their Darwinia contest really found and rewarded long-term alpha providers,than they would invest their REAL money as AuM into winners and earn for themselves from that newfound alpha.That is not the case,they give winner Monopoly money and if somebody by great luck earns some peanuts from that allocation in the following 6 months,they pay him 20% commission in real money.
Usually Darwinia winners earn almost nothing,because they are lucky suckers and broker knows it.It is cheap marketing for them.
  • #15
  • Mar 4, 2020 5:32am Mar 4, 2020 5:32am
This is a hilarious thread.
Risk Management is of utmost importance!
  • #16
  • Edited 5:37pm Mar 4, 2020 3:23pm | Edited 5:37pm
Quoting Jugoslavija
{quote} Usually Darwinia winners earn almost nothing,because they are lucky suckers and broker knows it.It is cheap marketing for them.
Even if that's the case, Darwinex ATTEMPTS to award the good traders that stick around for a while while trying not to award the bad ones who were only lucky. That's what "giving incentive" actually means. Even if the good traders aren't biting so much yet the correct incentive is still there. A bad trader trying to get lucky would prefer to enter some other contest where he has a chance, no? A good trader should recognize it as an opportunity, (especially if there are a low amount of good traders competing.) What could be a better incentive to attract good traders? It was certainly an incentive to me when I started. You can scan the list and see many repeat winners there, I know I'm not the only one. Even if it is still a "cheap marketing tool" for Darwinex that does not make it a scam any more than any other form of incentive that any other broker uses.

As for whether they actually put real money in or not... who cares? As a trader I'm glad that they do not as it would eat up the capacity of my strategies. Instead I have more room for real investors. If at some point the contest fills up with more profitable traders then they can make money off it be awarding real AUM but it's actually better for traders if they don't.

I'm extremely confident they are doing their best to attract good traders and I know they are open to any suggestions for attracting them (without placing advertisements.)
May all your fits be loose.
  • #17
  • Mar 8, 2020 5:13am Mar 8, 2020 5:13am
very good regulated forex broker.
  • #18
  • Apr 12, 2020 4:29am Apr 12, 2020 4:29am
They have a license from FCA. In addition, the darwins profitability is analyzed with their own proprietary parameters such as www.darwinex.com/all-darwins/
  • #19
  • Sep 16, 2020 4:45am Sep 16, 2020 4:45am
No need to worry about this company for at least next 2 years.
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  • #20
  • Oct 28, 2024 1:14pm Oct 28, 2024 1:14pm
Hi all,
if I have 3 strategies, what is better in Darwinex between opening 4 accounts (one per strategy and 1 with all of them together) or just one general account? Do more accounts have more capital allocation under the same profile?

The correlation rule is not a problem because these strategies are quite different...

Thanks
Be Water My Friend
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