[DARWIN] KAJ by Shivank

[Shivank]

Hello Traders,

Throughout my trading journey, I've faced the common experience of burning through several accounts, amounting to around $1500. I believe many of you can relate to this struggle. As I delved deeper into the trading world, I encountered the term "investing the Hardway." This realization came from reading books like "Security Analysis: The Classic 1940 Edition" and "Trading in the Zone."

Currently, I've adopted a systematic investment plan (SIP) since December 2022. This plan is a combination of investment strategies and rules based on the principles of value investing. While I'm in the early stages of this endeavour with limited capital, I decided to create this thread to share my amateur learning experiences and to benefit from the insights and discussions within the t2w community.

To implement my strategies, I've opted for two brokers:

(1) Darwinex: This allows me to leverage the prize money from DarwinIA (hopefully).
(2) Interactive Brokers: This choice gives me access to a wider range of asset classes and shares.
I'm also providing a link to my portfolio and I'm eager to see snapshots of your portfolios and hear your comments. Currently, I'm holding three stocks (EOG, CTSH, and BIIB) due to my limited capital and the focus on risk management.

Looking forward to engaging with you all and growing together in our trading journeys.

DARWIN KAJ - Provided by ShivFinance and managed by Darwinex

Meet DARWIN index KAJ and add it your portfolio of liquid alpha from €/£/$ 200. Broker and asset manager regulated by the FCA (UK) and the CNMV (Spain).

www.darwinex.com

 

[Shivank]

Trading in 2023 was relatively good (after couple of failed attempts at Darwin). Managed to win one Darwinia (old edition) and got the "Good score" filter for first time and stayed just for brief period of time. Hopefully, will achieve it again. Looking forward to comments and critical assessment for fellow traders.

In general, I stick to the trading plan and strategy with risk management. However, I made couple of mistake (highlighted with red) where I shorted Nvidia and Apple with high leverage (out of pure intuition/greed and speculation) and lost money in both the counts. For 2024, my plan is to improve risk management to next level and be consistent with small gains (keep the greed out of play).

Happy Holidays and Best wishes for 2024!

 

[Shivank]

KAJ has finally qualified for Darwinia Gold. The goal is to maintain disciplined trading. The major issue is investing in stocks through the Darwinex broker, as the holding period for these stocks spans several months, and swaps consume a significant portion of the profits. As a result, stocks aren't a suitable instrument to invest in on Darwinex. Therefore, I'll stop opening new positions and exit existing ones at favorable prices. Instead, I'll focus on investing in indices, particularly the S&P 500, with occasional strategic positions in forex.

I've seen significant improvement in trading discipline since my last update, maintaining a low-risk profile while achieving decent returns.

Hopefully, this progress will catch the attention of real investors, though I'm uncertain if the current track record is strong enough.

 

[Shivank]

This was very eventful month, I missed the Darwinia by 2 ranks (at some point I was +2% and could have secured Darwinia prize if would have closed positions). Evenafter not winning Darwinia, I am happy that I made the right decision overcoming the greed and by not changing investing thesis.

BIG POSITIVE is one of the investor has trusted the Darwin KAJ by investing 10k+. I would like to thank him/her and it gives me more motivation to have disciplined and responsible behavior towards investing.

Furthermore, to have more skin in the game added more funds to the account.

 

[Shivank]

Over the last six months, I have held positions in Alphabet, Applied Materials, Meta, and Cincinnati Financial Corp. During this period, as stock prices increased, they became more overvalued, so I gradually trimmed my positions. By mid-July, I had completely exited from these stocks. Following this, the equity market corrected slightly, making some stocks, such as Applied Materials, somewhat attractive again, though still not in the buying zone.

I still have investments in three undervalued stocks within the Specialty Industrial Machinery and Financial sectors (large caps). Due to profit-taking, the balance in my Darwinex account decreased during July, a situation mirrored in my IB account. My current portfolio consists of 80% value stocks and 20% growth stocks.

Darwinex:

As an investor, I still don't like using Darwinex as my broker, and for this reason, I keep my balance to a bare minimum. I can't tolerate the swap charges on stocks, which consume 7 to 10% of my investment (not profit). For example, if I have $1,000 invested in Darwinex, I pay approximately $70 in swap charges over a year. Especially if an investor is not using any leverage, why should there be swap charges? The only thing preventing me from leaving Darwinex is the prize money and rewards from Darwinia.

However, why do investors still invest in a Darwin strategy when they have to pay a 20% performance fee on profits, 1.2% management fees, and 5 to 10% swap charges on assets? Isn’t it crazy? I would love to hear your views on this.

Best regards,
Shivank

 

[IlIlIlIlI]

Over the last six months, I have held positions in Alphabet, Applied Materials, Meta, and Cincinnati Financial Corp. During this period, as stock prices increased, they became more overvalued, so I gradually trimmed my positions. By mid-July, I had completely exited from these stocks. Following this, the equity market corrected slightly, making some stocks, such as Applied Materials, somewhat attractive again, though still not in the buying zone.

I still have investments in three undervalued stocks within the Specialty Industrial Machinery and Financial sectors (large caps). Due to profit-taking, the balance in my Darwinex account decreased during July, a situation mirrored in my IB account. My current portfolio consists of 80% value stocks and 20% growth stocks.

Darwinex:

As an investor, I still don't like using Darwinex as my broker, and for this reason, I keep my balance to a bare minimum. I can't tolerate the swap charges on stocks, which consume 7 to 10% of my investment (not profit). For example, if I have $1,000 invested in Darwinex, I pay approximately $70 in swap charges over a year. Especially if an investor is not using any leverage, why should there be swap charges? The only thing preventing me from leaving Darwinex is the prize money and rewards from Darwinia.

However, why do investors still invest in a Darwin strategy when they have to pay a 20% performance fee on profits, 1.2% management fees, and 5 to 10% swap charges on assets? Isn’t it crazy? I would love to hear your views on this.

Best regards,
Shivank

I have no excperience with stock CFDs at Darwinex.
At Darwinex you don't buy the stock, you buy CFDs which means you don't pay the full price, you "pay" the margin of the stock deducted which is a money reservation.

Swaps are related to a credit amount behind the full price of the stock.

You can also earn swaps, you do not always pay them:

Currently usually you only earn swaps if you hold a short position overnight.

I'd aprreciate if investors might share their thoughts on your post.

 

[Shivank]

Hello Everyone,

I’ve noticed that this forum has become less active and I miss the vibrant and fruitful discussions we used to have, especially during official Darwin community.

Darwin KAJ is going strong with five investors who have collectively invested over $50,000. I’m deeply grateful for your trust and fully aware of the responsibilities that come with managing KAJ.

Recent Updates​

1. Portfolio Stability:
Over the past two months, there haven’t been any major changes to the equity holdings in KAJ. Currently, we are invested in four stocks, and I plan to maintain these positions through the expected market volatility surrounding the upcoming U.S. elections. I’ve decided to pause any new investments for now, opting to wait for better entry prices in our current holdings. Additionally, I’m keeping a close watch on stocks like GOOGL and ADBE, waiting for the right pricing to make a move.

2. Investment Philosophy:
All investment decisions for KAJ are grounded in fundamental analysis, inspired by various books on value investing. I firmly believe there’s no secret formula for picking stocks—it’s about thorough research and disciplined decision-making. In the spirit of transparency, I plan to share my analyses and disclose the equities that KAJ holds in upcoming posts. This way, you can have a clearer view of Darwin operations and make informed decisions about your investments.

3. Addressing Swap Fees:
In my previous post, I expressed concerns about the high swap fees on Darwinex, which can disadvantage investors in terms of performance and management costs. To mitigate this, I’ve opened an account with IBKR(that is connected with Darwinex) and started making investments there. This allows me to eliminate swap fees by investing in the cash segment rather than CFDs (plus IBKR is more trustworthy and I feel more comfortable there). However, I recognize that there’s still a disadvantage in terms of high management and performance fees for investors, especially those not using leverage with Darwinex. I’m open to any suggestions or alternative options to minimize these fees for both traders and investors.

Let's Stay Connected​

I hope some of my investors are reading these updates, and I encourage you to engage more in this forum. Your feedback and ideas are always welcome!

Wishing you all a Happy Diwali and Happy Halloween!

 

[CabedoClenow]

Eventhough, the underlying account is in IBKR, so far investors will replicate it using CFDs, so there is no way to skip swap costs for them. Darwinex has not implemented fractional shares yet, so currently it is not interesting to invest in strategies which universe investment would be nor stocks nor ETFs excepting if the invest intraday or short term swings…

 

[Shivank]

Yes, Investor will pay Swap fees and it is painful to see. As said previously, I believe Darwinex is not the best broker in terms of fees and charges; so for investors also it is bleeding lot of money. However, with IBKR i have more trust to deposit more money (Skin in the game) and same time can manage the money of investors and Darwinia. So atleast for traders (me), the issue of swap cost is resolved.

I hope there will be more improvement to Darwinex (not in the current direction they are focused with Darwinex zero).