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.
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”, it is near to impossible to give a precise answer because each DARWIN is competing against thousands of other DARWINs so the final standing will depend not only on your DARWIN's achievements but also on how it performs against the rest.
Having said that, you can always use our DarwinIA calculator to get an estimation based on the final standing in DarwinIA in the last month.