Darwinex Zero demo portfolio

[IlIlIlIlI]

On April 1st, I started a new portfolio which can contain only Darwins coming from Darwinex Zero.

As there were very controversal discussions about trading Darwinex Zero, I was and am curious whether Darwinex Zero can create successful traders.

A Darwin from Darwinex Zero is only available for investment if it can participate in DarwinIA GOLD. That's also valid for demo portfolios.
Darwinex Zero Darwins are always automatically named with 4 digits, the trader has no chance to provide an own name.
These are the criteria to move a Darwin from DarwinIA SILVER to DarwinIA GOLD:

Meanwhile there are a few 4-digit Darwins available in DarwinIA GOLD.

For the selection for this demo portfolio I took very few criteria:
- Darwin must come from Darwinex Zero (must be a 4-digit Darwin)
- Darwin must be available for investment (and then it is automatically competing in DarwinIA GOLD)
- Darwin must have got an allocation prize in at least one of the last 2 DarwinIA contests (final results)
- Darwin must have made profit last month (currently no level defined, i.e. profit on the DarwinIA GOLD ranking list must be > 0)

Portfolio maintenance will be done after a monthly contest is closed.
The selection must be done manually as there is no support by filters.

So the following Darwins were bought:

This is the current chart:

... and positions:

The current performance is built mainly by one Darwin out of seven, at the end of the month we'll see whether that will be improved.

 

[IlIlIlIlI]

The former profit could not be held, but the portfolio stayed in profit before paying investor fees.

Before selling the April portfolio there are the following results:

Selling resulted in a loss of more than 1% because of performance fee, the equity available for buying the new Darwins is down now to $ 9,946.37.

9 Darwins qualified for the May selection:

.. and were bought with $ 4,420 each:

Performance fee was to pay for only 3 Darwins, but wiped the small profit of April out:

Management fee to pay in April:

 

[IlIlIlIlI]

Today the portfolio shows a new ATH, we'll see whether it can be held until end of the month.

8 Darwins of the portfolio trade with a VaR less the 6.5 % which implies a replication factor > 1 against the trading account as long as the target VaR is not cut significantly.

 

[IlIlIlIlI]

May ended with a nice profit of more than 4% before selling the positions:

Seven out of 9 Darwins were profitable:

Nine Darwins qualified for the June composition:

Related transactions should be done on Monday.

 

[FranziskaSchulz]

what's Darwinex Zero? is that a broker or a platform? I need more information on that please.

 

[IlIlIlIlI]

what's Darwinex Zero? is that a broker or a platform? I need more information on that please.

Here at T2W is also a thread called DarwinexZero opened when Darwinex started the program:

Darwinex Zero

I'm curious to know your opinions about the new Darwinex product. My first impression is that they are trying a mix between a copy trading brokers and prop firm.

www.trade2win.com

After a hot discussion about the sense of Darwinex Zero this thread mutated to mainly advertisings for discount codes for the registration for Darwinex Zero

What's Darwinex Zero?
Darwinex Zero is a program for traders where they can trade without risking own money paying a monthly fee of 38 EUR.
To make money, Darwinex Zero traders have to reach the minimum requirements for an allocation of (virtual) money by Darwinex and get paid for their trading success on that allocation (simulating a real money investment) like a signal provider.
The program is started by the broker Darwinex from Spain. They are regulated in Spain and UK.
Homepage of the program: https://www.darwinexzero.com/
The brokers motivation to create Darwinex Zero: https://blog.darwinex.com/reasons-behind-darwinex-zero/

The original Darwinex (the platform is now called Darwinex Classic) is a Forex and CFD introducing broker who allows investors to invest in the trading signals of traders where the investor's trading is managed by the so called risk manager (a piece of software calculating the replication factor in line with a complicated set of rules).
Darwinex investors can buy a "Darwin" (the trading signals of a single trading account, managed by the risk manager software) to make real money.

 

[trilobite]

A very good summary of a long and complicated history!

 

[IlIlIlIlI]

After selling the May Darwins there are $41,641.21 available to invest:

The June Darwins were bought with an investment of $4,626 for each of the 9 new Darwins:

Performance fee was to pay, but there is currently an error on the platform so the details are not shown:

Alternatively here is the list of the profitable investments made in this portfolio:

Management fee was also to pay:

 

[IlIlIlIlI]

For the currently selected Darwins for this portfolio there is a public list here: https://www.darwinex.com/list/768457
You can use it for your own research on one or the other of these Darwins or if you want to run a backtest with them. (in this case don't forget that a backtest only shows the survivors of the period)

There are more and more Darwins from D-Zero in DarwinIA GOLD every month, currently nearly 20 of the 4-digit-Darwins from D-Zero would get an allocation.

So I decided to limit the number of Darwins in this portfolio in line with the past selections so that there is no change in the investment strategy.
I thought about 2 options:
- every Darwin in this demo portfolio will get an investment of at least $ 4,000.
- depending on other criteria the maximum number of Darwins in this demo portfolio can be set to 10.

The selection will be counted top down of the monthly return which is also the sorting sequence of DarwinIA GOLD.

 

[IlIlIlIlI]

This demo portfolio shows profit again in June and a new ATH today:

I also compared with backtests the top 9 D-Zero Darwins of the May 2024 edition of DarwinIA GOLD (which are in this portfolio) against the top 9 (3-digit) Darwins of this edition which came from Darwinex CLASSIC.

The backtests started at the first of June 2023.

Backtest of the D-Zero Darwins:

Backtest of the Darwinex CLASSIC Darwins:

Interesting differences as the D-Zero Darwins show a much more smoothed performance curve and a slightly besser overall result.

Even if this is only a snapshot of a certain edition, it shows interesting differences which are not noticed by the majority of investors as these 9 D-Zero Darwins have about 100k AuM against about a million AuM invested in these Darwinex CLASSIC Darwins.

 

[IlIlIlIlI]

June ended with a remarkable profit of more than 5.8 %, the highest monthly value in this quarter and this portfolio.
The total profit now is close to 11.5 % made in only one quarter, before the June positions are sold and performance fee is paid.

8 our of 9 Darwins were profitable in June:

Even if it would be possible to take 11 Darwins with more than 4k investment amount in this portfolio for July, I will take only 10 Darwins as the first 10 show a performance of clearly more than 2% in the DarwinIA GOLD list while the next ones show less than 2%.

Transactions should be done on Monday.

 

[IlIlIlIlI]

After selling the June Darwins there are only $39,202.80 shown available to invest.

Buying the July Darwins is currently blocked

So I will have to wait until I'm able to buy.

 

[IlIlIlIlI]

Now the missing Darwin is sold, but trading 4-digit Darwins of DarwinIA GOLD is still blocked.
A ticket is opened.

 

[IlIlIlIlI]

July Darwins were bought with a share of $4,417 each after the restriction bug was removed by Darwinex:

Performance fee was paid:

Management fee was also paid:

 

[IlIlIlIlI]

July ended with a bad result which was feared for anytime:

On the last day of July the portfolio had a significant recovery, otherwise I would call the July result catastrohic.

Only 4 out of 10 Darwins were profitable in July, the loss was mainly created by 2 Darwins:

For August there are 10 Darwins selected from DarwinIA GOLD:

Transactions should be done tomorrow during the European or American stock market session.

 

[IlIlIlIlI]

After selling the Darwins ...

... we have $ 33,238.40 to invest as 2 Darwins are not settled because they contain CFDs of US stocks which cannot be sold before the US markets are opened.

The following Darwins were bought for August:

The open amount will be invested with identical shares in the same 10 Darwins when it will be available to invest.

Performance fee was also to pay and/or deducted:

It is interesting that none of the August Darwins left losses in this demo portfolio until now.

Management fee was also to pay:

 

[IlIlIlIlI]

The money was freed an invested:

 

[IlIlIlIlI]

I doubt whether it makes sense to continue this portfolio with these composition rules.

The current impression can only be that there are no good traders.

It is typical for a lot of strategies that they work fine for 3 months but after the next change of market behaviour after about 3 months they fail.

Average traders react by changing the strategy after a deeper drawdown (without sufficient success by that change to recover, usually results become more worse) or stay stunned hoping the next market moves could help.
Sometimes they are lucky with this, more often the helping moves are not enough for new highs in the next weeks or few months.

The x4 levarage only multiplies the deposit used and makes the success and failure more striking.

Let's wait for the month's end results and they this portfolio might be discontinued.

 

[IlIlIlIlI]

This demo portfolio will be closed now after a second significantly losing month wiping out more than the profit of the first months:

The selection rules did not work again as the biggest loser lost 4 times the profit of the biggest winner:

There were 4 nice winners in the history of this portfolio:

There are net losses on the portfolio this time, also if the fees made the majority of the losses.

Fees are not shown on the Darwin's presentation page, but only on the backtest page.

The size of the losses also depend on the leverage x4, but the leverage does just multiply profit or loss.

A backtest with leverage x4 of the 4 winning Darwins looks nice since start of this portfolio:

As long as Darwinex does not allow more than one demo portfolio for a single user, it is not possible to run a preselection on one demo and the validation on a second demo portfolio before investing real money.

 

[IlIlIlIlI]

How does this work?

Closing the portfolio means to reset it, there's a button for it. It was and is a demo portfolio.

The reset only works during trading hours.