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A Short Guide to DarwinIA

DarwinIA is Darwinex's monthly seed capital allocation.

We assign up to € 7.5 M notional to 120 DARWINs every month as a way of incentivising providers to improve their strategies and train them for trading with AuM assigned to their DARWIN.

DarwinIA is NOT an investment recommendation.

Contents

Allocation

Prizes

Eligibility

Ranking

FAQ

Allocation

Every month a maximum of €7,500,000 notional capital is allocated to the top 120 DARWINs on the DarwinIA leaderboard. The real allocation is a multiple of the smallest equity realized during the month on the DARWIN’s underlying trading account, and is capped to a maximum by leaderboard rank.

Note that equity in not equal to balance.

  • Balance: Funds deposited plus profits and losses already realized
  • Equity: Balance plus the floating profit/loss of open trades

Current equity multiplicators can be consulted here.

The funds remain allocated to the DARWIN for a six-month-long uninterrupted period. Thus Darwinex maintains a maximum of 45,000,000 € notional allocation in traders.

Prizes: 15% performance fee + Darwinian Dividends

From the profits generated by the DARWIN on the allocation, the trader obtains a 15% performance fee (calculated on a quarterly basis, taking into account a high-water mark).

In addition, Darwinex hands out cash prizes by means of Darwinian Dividends.

Eligibility criteria

DARWINs are automatically entered into DarwinIA upon fulfilling the following eligibility criteria

  1. Monthly Divergence > -0.4%. Unless AuM is under $2,000.00.
  2. Correlation between DARWINs from the same provider < 0.5. Only the DARWIN with the higher D-Score will participate.
  3. Correlation between DARWINs from different providers < 0.8. Only the DARWIN with the higher D-Score will participate.
  4. Open to Buy. Must be open to new investment.
  5. Mc > 3. To be ranked on the DarwinIA leaderboard, a DARWIN's Market correlation value must be 3 or higher. (Starting September 2020)

  6. Rs > 3. To be ranked on the DarwinIA leaderboard, a DARWIN's Risk stability value must be 3 or higher. (Starting September 2020)

  7. Monthly return > 0%. To be ranked on the DarwinIA leaderboard, a DARWIN's monthly return must be positive. (Starting September 2020)

  8. DarwinIA allocation < € 500,000. To be ranked on the DarwinIA leaderboard, a DARWIN's current DarwinIA allocation must be lower than € 500,000. (Starting September 2020)

Ranking Criteria

  1. D-Score. The most important criteria.
  2. Monthly Return. Measures the monthly return achieved by the DARWIN.
  3. Regularity. Compares the DARWIN's activity for the current month with its activity over the previous three months.

Frequently Asked Questions

These are some of the most frequently asked questions from our users.

  1. Does Darwinex hand out €7,500,000.00 in prizes? As shown above, Darwinex does not hand out €7,500,000.00 in prizes, but rather it allocates that maximum notional amount in the top ranking 120 DARWINs. Darwinex will pay to traders 15% of the profits generated for the allocation.
  2. How often is the DarwinIA ranking updated? The DarwinIA ranking is updated every 4 hours. The DarwinIA page it states the time remaining for the next update.
  3. What can I do if my DARWIN isn't eligible due to correlation? The correlation between the different DARWINs changes all the time. Although at one given point in time a DARWIN can be excluded from the contest, after the next update it may be included again. Strategies which are self-developed will have less chances of correlation than commercial robots which are widely used, even if these have been optimised with different parameters.
  4. Do I have to trade a certain number of times to have 100% regularity? 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. The only thing to bear in mind is that there is a degree of consistency in terms of the number of positions closed and their duration in the current month, and the average over the last three months. We are aware that algorithmic traders will have a much higher number of trades than manual traders. That said everybody can reach 100% regularity trading with a consistent frequency in their trading.