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.
Every month a maximum of €7,500,000 notional capital is allocated to the top 120 DARWINs on the DarwinIA leaderboard.
Funds remain invested in the DARWIN for a six-month-long uninterrupted period. Thus Darwinex could allocate a maximum of 45,000,000 € notional to its traders.
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 is 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.
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.
DARWINs participate automatically in DarwinIA upon fulfilling the following eligibility criteria
- Monthly Divergence > -0.4%. Unless AuM is under $2,000.00.
- Correlation between DARWINs from the same provider < 0.5. Only the DARWIN with the higher D-Score will participate.
- Correlation between DARWINs from different providers < 0.8. Only the DARWIN with the higher D-Score will participate.
- Open to Buy. Must be open to new investment.
Mc > 3. To be ranked on the DarwinIA leaderboard, a DARWIN's Market correlation value must be 3 or higher.
Rs > 3. To be ranked on the DarwinIA leaderboard, a DARWIN's Risk stability value must be 3 or higher.
Monthly return > 0%. To be ranked on the DarwinIA leaderboard, a DARWIN's monthly return must be positive.
DarwinIA allocation < € 500,000. To be ranked on the DarwinIA leaderboard, a DARWIN's current DarwinIA allocation must be lower than € 500,000.
- D-Score. The most important criteria.
- Monthly Return. Measures the monthly return achieved by the DARWIN.
- Regularity (updated on a daily basis). Compares the DARWIN's activity for the current month with its activity over the previous five months.
Read more about the formula of the DarwinIA rating.
Frequently Asked Questions
These are some of the most frequently asked questions from our users.
- 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.
- How often is the DarwinIA ranking updated? The DarwinIA ranking is updated every 4 hours. The DarwinIA page states the time remaining for the next update.
- 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 that are self-developed will have fewer chances of correlation than commercial robots which are widely used, even if these have been optimized with different parameters.
- 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 5 months. Market exposure for Regularity is calculated in the same way it is calculated for the Experience (Ex) 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 five 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.