Discussion
Here's an interesting concept www.darwinex.com that may be worthy of discussion here. In some ways it looks like a version of Uber for investors. Clearly some capital and expertise (both technical and regulatory) has been deployed to get it to where it is today.
The underlying idea of bringing together supply (in this case traders with track records) and demand (investors seeking new sources of returns) is consistent with other web-based platforms that have proved capable of creating value.
There are many obvious questions - transparency & integrity of track records, counterparty risks, diligence opportunities etc
The underlying idea of bringing together supply (in this case traders with track records) and demand (investors seeking new sources of returns) is consistent with other web-based platforms that have proved capable of creating value.
There are many obvious questions - transparency & integrity of track records, counterparty risks, diligence opportunities etc
Darwinex said:
It's 2016 AD and the Internet sets people free: they crowd-source stuff, for everyone's benefit.
And yet… looking to place your hard-earned savings? Not investing millions?
Sure - get in the queue. For that amount, there's X, Y or Z: make peanuts in good years (under-exposed to blah, blah) and lose a bundle in bad ones (markets turn, blah, blah).
In 2016, ordinary investors looking for opportunities remain a middlemen-chain away from those finding them. So many, it's a miracle if the action reaches those holding the chain.
And yet, it's 2016 and millions of brains trade for independent profit, undiscovered! Surely the best of them are genius? How about legally listing their talent, for everyone's benefit?
Darwinex is independent traders exchanging profits with DARWIN investors. It's technology democratising financial markets, for human evolution.
How about you, can we count you in?
ps - I'm not asking if I should "invest" or not (I'm fully capable of making up my own mind on that..!), and I'm not associated with Darwinex in any way.And yet… looking to place your hard-earned savings? Not investing millions?
Sure - get in the queue. For that amount, there's X, Y or Z: make peanuts in good years (under-exposed to blah, blah) and lose a bundle in bad ones (markets turn, blah, blah).
In 2016, ordinary investors looking for opportunities remain a middlemen-chain away from those finding them. So many, it's a miracle if the action reaches those holding the chain.
And yet, it's 2016 and millions of brains trade for independent profit, undiscovered! Surely the best of them are genius? How about legally listing their talent, for everyone's benefit?
Darwinex is independent traders exchanging profits with DARWIN investors. It's technology democratising financial markets, for human evolution.
How about you, can we count you in?
Edited by WindyCommon on Wednesday 12th October 08:56
The primary questions for any copy trading platform tend to be what their trade history is constructed of and how to they actually report performance and how trades are executed.
Most services allow their vendors to upload historic trades, or build history using demo accounts or to publish backtesting results. What that means is that the trade history used to sell the promise of future performance is completely faked and of no value.
Knowing how the live performance is calculated is also important. Most systems opt to show live P&L of closed positions but not running, so obviously a vendor can game the visual performance by burying running losses and only closing winning trades.
And trade execution is important. Some systems allow vendors to publish from demo accounts. This makes their trades worthless as demo accounts are not a perfect representation of the real trading platform but a sales tool.
And finally, it's worth looking at how the vendors' broker is regulated. Being based out of a third world island that is a front for illegal money laundering and that offers a U.K. Investor absolutely no form of protection in any way would be something to be wary of.
Most services allow their vendors to upload historic trades, or build history using demo accounts or to publish backtesting results. What that means is that the trade history used to sell the promise of future performance is completely faked and of no value.
Knowing how the live performance is calculated is also important. Most systems opt to show live P&L of closed positions but not running, so obviously a vendor can game the visual performance by burying running losses and only closing winning trades.
And trade execution is important. Some systems allow vendors to publish from demo accounts. This makes their trades worthless as demo accounts are not a perfect representation of the real trading platform but a sales tool.
And finally, it's worth looking at how the vendors' broker is regulated. Being based out of a third world island that is a front for illegal money laundering and that offers a U.K. Investor absolutely no form of protection in any way would be something to be wary of.
DonkeyApple said:
The primary questions for any copy trading platform tend to be what their trade history is constructed of and how to they actually report performance and how trades are executed.
Most services allow their vendors to upload historic trades, or build history using demo accounts or to publish backtesting results. What that means is that the trade history used to sell the promise of future performance is completely faked and of no value.
Knowing how the live performance is calculated is also important. Most systems opt to show live P&L of closed positions but not running, so obviously a vendor can game the visual performance by burying running losses and only closing winning trades.
And trade execution is important. Some systems allow vendors to publish from demo accounts. This makes their trades worthless as demo accounts are not a perfect representation of the real trading platform but a sales tool.
And finally, it's worth looking at how the vendors' broker is regulated. Being based out of a third world island that is a front for illegal money laundering and that offers a U.K. Investor absolutely no form of protection in any way would be something to be wary of.
Agreed on all points. As I can determine from FAQ's etc:Most services allow their vendors to upload historic trades, or build history using demo accounts or to publish backtesting results. What that means is that the trade history used to sell the promise of future performance is completely faked and of no value.
Knowing how the live performance is calculated is also important. Most systems opt to show live P&L of closed positions but not running, so obviously a vendor can game the visual performance by burying running losses and only closing winning trades.
And trade execution is important. Some systems allow vendors to publish from demo accounts. This makes their trades worthless as demo accounts are not a perfect representation of the real trading platform but a sales tool.
And finally, it's worth looking at how the vendors' broker is regulated. Being based out of a third world island that is a front for illegal money laundering and that offers a U.K. Investor absolutely no form of protection in any way would be something to be wary of.
- Only track records created by traders using live accounts are eligible for the creation of what they call "Darwins". This is quite a high hurdle (for good reason) as it will involve the commitment of both time and capital by the underlying trader. Demo account track records aren't portable, but live MT4 accounts from other brokers are.
- It's a UK company authorised by the FCA
- I haven't looked at the level of reporting transparency but I may open a demo account and see what is offered
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