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The formula of the DarwinIA rating

Darwinex determines the final standing in DarwinIA based on a proprietary rating algorithm which takes into account 3 variables.

Darwinex determines the standings in the monthly DarwinIA capital allocation based on a proprietary rating algorithm which takes into account 3 variables:

  • D-Score
  • Monthly return on the DARWIN
  • Regularity 

We prefer not to disclose the exact formula due to company policy. 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 the rating. With those 2, we calculate the rating´s score which will be penalized if Regularity does not get to 100%. The lower the Regularuty, 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 3 months. Market exposure for Regularity is calculated in the same way it is calculated for the Experience attribute.

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.