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Why Darwinex is not growing?

Why Darwinex is not growing?

  • Total voters
    30
IlIlIlIlI said:
Juans idea for "Pivot": better traders
Click to expand...
The idea o Juan was : wholesale commissions -> better return -> more investors .
Unfortunatelly the improvement was only on few scalpers with big divergence problems.
Not enough to offset the huge impact of the management fee.
Investors don't see wholsale commissions, they were and are losers, but now the realize that they are paying Darwinex to lose money, this is not acceptable and they go away.
 
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CavaliereVerde said:
The idea o Juan was : wholesale commissions -> better return -> more investors .
Unfortunatelly the improvement was only on few scalpers with big divergence problems.
Not enough to offset the huge impact of the management fee.
Investors don't see wholsale commissions, they were and are losers, but now the realize that they are paying Darwinex to lose money, this is not acceptable and they go away.
Click to expand...
Exactly, big gains and big fee, no problem. Small to average gains and big fee, big problem.
 
QQQ has a management fee of 0.2% and a VaR of 10%
TQQQ has a management fee of 0.95% and a VaR of 20%

Low&risk high fee is not an attractive proposition, speaking about "repositioning and rebranding".
It is fair to pay for value but first they should prove that Darwin is a winning asset class.
There is no proof, we don't have a winning index.
 
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The top 3 of the most invested Darwins lose money since a year if you just deduct the 1.2% management fee and some Euro for performance fee.
That means the top 17 millions of investor money lost at Darwinex.
How many percent of their investor volume is that? 30%, 40% or 50% ?

How long will Darwinex sit there and be happy with 1.2 % out of these 17 million?

If these 17 millions would have been invested in profitbale Darwins with an average of 20% return then there would be an organic growth of 3.4 million from inside, cut by fees to maybe 2.5 million.

The main follow up questions are:
Was there a chance to identify the better performing Darwins a year ago?
How can alpha traders be identified at Darwinex (if there are any)? Currently they are not visible - for sure the top 3 most invested are not since more than 12 months.

What's lost since a long time is the idea of an exchange.
But I always insist that there is no need to share a DD.
If it would be an exchange then savvy investors would buy this month/quarter/year this Darwin and the other month/quarter/year another one and sell the old ones.
But the exchange is not supported, more forgotten if I remember the last comment of Juan in the hot discussions about HFD or "Pivot".
Why?
What's the problem to sell stuff at an exchange and buy a better outlook?

CavaliereVerde said:
Paying 1,2% for a profit of 5% is not attractive neither for retail investors neither for institutionals.
Click to expand...
Institutionals will never ever trade these retail trader markets, what you could mean are wealth managers trading dump money (as you like to call it).
 
CavaliereVerde said:
The fact that WGP and JTL are not reaching 100 investors should be a red flag for Darwinex.
Click to expand...
It would be so easy for them if they would make the right changes here:
1624109988686.png
 
WGP and JTL have only one year of native trackrecord so they are not good for a 2y backtest.
BTW investors are not looking to model portfolio.
 
The funny thing is that they keep including ULI with the poorest performance, the lowest price and currently losing.
The first year of the two years shown of this composition is very unattractive.

I'm sure in your filter of 82 Darwins there can be found much more successful Darwins with a track record > 2 years with a much more acceptable return in the first and in last 12 months.

As they still insist to allow only one demo portfolio it's nearly impossible for investors to try to follow more than one strategy outside of Excel. 🙂
Edit:
If I take your filter, sorted by return last two years (descending) and take the first 10 Darwins elder than 2 years (you see it in the timeframe column very easy) I get the following top 10 Darwins:
1624112789162.png
1624112807194.png

1624112846992.png

1624112869063.png

All are tradable besides NYD.
(It would be replaced by this one)
1624113158673.png

Now it could be checked after a period whether a portfolio like this can produce performance for investors.
Maybe your filter is a hidden holy grail 😉 for investors.
 
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CavaliereVerde said:
Maybe but that was happening also 1 , 2 and 3 years ago.
"Lack of alpha" is going strong so I have a question.
Darwinex growth was 3x in 2017.
->https://www.darwinex.com/about
Was there more true alpha in 2017 than in 2020 ?
Lack of alpha is the main problem of social trading but I think the average quality of traders (and investors) hasn't changed so much in 3 years.

I think "lack of true alpha " is more the answer to the question "Why investors aren't make money?"
Click to expand...
Yes I did answer that, and I was thinking as an investor, which is the only use I make of Dwx.
 
This filter is not for investing but to show that there is a good supply of attractive darwins.
My main filter is very different from this one, past performance is not enough to find future winners but is enough to attract investors and to grow.
Maybe there are more attractive darwins today than 1 or 2 years ago but investors are leaving.
 
CavaliereVerde said:
Maybe there are more attractive darwins today than 1 or 2 years ago but investors are leaving.
Click to expand...
The rational decision for me (investor only) would be to leave, but I hate letting all the time spent go to waste ("sunk cost bias" for my life time).

For the time spent studying and selecting Darwins, there are much better investment options.

Unfortunately I'm very curious and open to new ideas; so, the Darwinex marketing got me in. I would certainly not start with it again, if I could go back in time.

As an amusement anything can do if you enjoy it, though.
 
Exactly the same for me! 😀
Investing darwins is extremely difficult and now it is also very expensive but leaving would mean wasting 4 years of study, thousands of hours.
 
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I was speaking as investor.
I started investing in January 2016, my total net investing result is -3227€

As provider you can't lose money.
BTW with the present rules my earnings would be 30% of those acheived with old conditions.
 
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Looks like most of us we believe that Darwinex is not growing because of lack of true alpha, according to this post survey. I voted for that reason too.

However, could it be possible that with the new investor Darwinex would finally leave its stagnation? Beyonf the fact that his new videos on Youtube have a dubious approach from the Marketing perspective. The first one with Juan Colon and the new investor guy (sorry I don't remember his name neither I don't care too much) was almost ridiculous, they said nothing and looked like two friends talking about weather or football. Probably would had been better if they had some beers on the table.
Ok, beyond that. Maybe they will actively move trying to attrack new talent? That is to increase successful traders and investors. Investors need good traders and good traders love investors.

So far my feeling is that they were more focused to open to futures denying CFD's. Not sure if they'll get the expected results with this approach. So many good brokers on futures; bigger, better, more experienced than Darwinex
 
Gargamel said:
It would be more productive if they treated this as a serious,long-term business.
Click to expand...
Would it then not be more conducive to a long-term approach if performance fees were charged on a longer HVM period, like one-year instead of 3 months? Longer compounding should benefit all sides.

Performance fees are retained anyway, but the rational incentive now is to take profits by selling the Darwin no later than the 3 months.
 
We have THA SYO and UYZ at all time highs and despite it the number of investors is not growing.
🤔 🕵️‍♂️
Something to think about for Darwinex...
 
There is a bit of confusion, 4484 are darwins partecipating to Darwinia.

Active darwins are 3020, less than at the beginning of 2021.

SYO has lost 135 investors in 2021
THA has lost 131 investors in 2021

I agree on TRO for AUM , while JTL is the hero for number of investors: +135
 
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