Darwinex determines the final standing in DarwinIA based on a proprietary "rating" algorithm that takes into account 3 variables.
Darwinex determines the standings in the monthly DarwinIA capital allocation based on a proprietary "rating" algorithm that takes into account 3 variables:
- Monthly return on the DARWIN
- Regularity (updated on a daily basis)
We prefer not to disclose the exact formula. However, we can give some clues.
D-Score & Monthly Return
The most important variable is the D-score followed by the DARWIN's monthly return.
Note that beyond a monthly return of 10%, this variable won't significantly contribute to increasing the rating score.
With those 2, we calculate the rating´s score which will be penalized if regularity does not get to 100%. The lower the regularity, the greater the penalization.
In order to obtain a 100% in regularity, a DARWIN's market exposure in the current month must reach at least 80% of its average market exposure in the previous 5 months.
As to questions like:
- “If my D-Score is 40 and I can achieve 97% regularity, then what monthly return do I have to achieve in order to get a rating above 70”