CavaliereVerde
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I think the calculator/simulator is gone...I'm curoious whether/when they will change the calculator under "more information" on the DarwinIA page to include the VaR.
I have to refine my statement.Traders on average will not earn more because of these changes.
Sorry. I don't understand what's the point to invest in your own Darwin instead of putting your money directly into your account. As an investor of yourself you are paying a fee for nothing. Also, in my case; when my strategy wins it overperforms my Darwin for a few points.Currently my Darwin is flat so I could play the investor game with it to look which effect it would have to a hypothetical DarwinIA allocation.
The trader equity shown for DarwinIA when I'm fully invested in the trading account is 3,534.85 €.
If I take about 10% of the account and invest the minimum amount of 201 € in my Darwin (with 3x leverage) it decreases to 3,400.85 €.
The Darwin investment is not an advantage here, the main reason is the VaR calculated currently to more than 52.24 % which is cut to 32.5 % for the DarwinIA calculation.
I assume it can be an advantage for the trader if the VaR of his Darwin is below the cap of 32.5%, as long as his min. equity of the month is below the equity cap .
With a VaR of about 9% your trading account will always have more volatility and more profit or loss than your Darwin with a VaR of max. 6.5%.Sorry. I don't understand what's the point to invest in your own Darwin instead of putting your money directly into your account. As an investor of yourself you are paying a fee for nothing. Also, in my case; when my strategy wins it overperforms my Darwin for a few points.
Could you ellaborate that idea please?
Darwinia equity = Trading account equity x (VaR/6.5) + Darwin equityDoes that work for a hypothetical DarwinIA allocation for my Darwin?
For DarwinIA the min. equity is relevant, not the current one.Darwinia equity = Trading account equity x (VaR/6.5) + Darwin equity
Current scenario:
711 x (32.5/6.5) + 0 = 3555
Proposed scenario:
644 x (32.5/6.5) + 201 = 3421
It appears that the proposed change would reduce your Darwinia equity and you would also incur the management fee and the 5% cut of any performance fee.
This is the easy and expensive way, just buy your darwin and increase your total equity.So I must come to the conclusion, that Darwinex now wants traders to move capital from their trading account to the investment in their own Darwin.
Hit the nail on the head @CavaliereVerde, but how to achieve that without destroying D-Score (and those lovely rebates for scores above 60). I was thinking along those lines and reduced the trading account equity by 75% and did a test trade of the same lot size as before. The risk manager didn't like it. With a very low VaR, a higher leverage trade becomes huge leverage when it is multiplied up. I'm a bit stuck now as how to safely increase the VaR on JKL. Any suggestions gratefully received. I thought maybe do some longer lasting low leverage trades to gradually change it. The problem with using higher leverage whilst the VaR is super low is that the Darwin could become very volatile (and I don't want that).The optimal way is just to increase tradesizes and increase your var.
This is a bit brutal...reduced the trading account equity by 75%
Withdraw 25% per month.Any suggestions gratefully received
I would take 25% per week (or increase the trade size by 25% per week) and watch the Rs attribute which is slow, as the calculation uses the last 45 trading days. If you didn't get the wrong moment to start, the Pf attribute can compensate it partially if Rs starts going down in its score.This is a bit brutal...
Withdraw 25% per month.
Thanks for your suggestions guys. That is one of the strengths of a user forum in my opinion.BTW DScore is not calculated from Rs anymore.
Changing var harms Risk Stability but I prefer a Rs score 2 points lower with a total equity 3 or 4 times better, that translates in much more allocation.