Darwinex Darwinia Challenge

Darwinex runs a monthly trading challenge, known as the Darwinia, where €4.5m is shared amongst 60 traders.  Who can compete for Darwinex Darwinia competition? What is required to be among the top 60 traders in a month? This post tells you all you need to know.

The Darwinex Darwinia challenge is a prominent feature of Darwinex. It is arguably one of the main attractions for forex traders joining this broker.  Landing a place in the top 60 for this monthly challenge means receiving a sum to manage for six months. The amount can be as high as €300,000! However, before you roll out the drums, here are some rules to keep in mind.

Darwinex Darwinia Trading Challenge Rules

On the surface, it appears as if all that is required to be in contention for a top 60 place in the Darwinex Darwinia challenge is to get a high return for the month. This isn’t the reality. As we mentioned in this post, other factors come into place as far as the Darwinia rankings are concerned. They are covered below.

The D-score

This is probably the most essential Darwinia ranking factor. If you have a D-score lower than 65, you cannot expect to challenge for Darwinia consistently.

Even with a double-digit return for the month, a D-score lower than 65 may not be enough to get you a place in the top 60, never mind finishing in the first position.

Therefore, if your darwin has a score lower than this, you should probably not bother about refreshing the Darwinia table every day!

The Monthly Return

If you have a high D-score and a positive monthly return of at least 2%, you are almost guaranteed a place in the top 60. So if your darwin has a D-score of 70+, maintain positive returns each month, and you are practically certain of some allocation.

Of course, the final position will be determined by the exact return generated for the month as well as what other traders in the top 60 have done for the month.

Regularity

This metric checks to confirm that you are not altering your trading for the Darwinia competition. It looks back at your regular trading activity over the last three months. If your trading activity this month is well below average, you will most certainly be penalised.

The penalty may not push you out of the top 60 entirely depending on the other two factors above, but you will not get the allocation you would be due ordinarily.

The above are the ranking factors that combine to determine where you will finish in the top 60 or if you have a place in there at all. However, there is another rule that determines the exact allocation amount you will get regardless of your position. This is known as the minimum equity rule.

The Darwinex Darwinia Minimum Equity Rule

This rule determines precisely how much you will be allocated, based on your own minimum balance. The rule states that everyone in the top 60 places will get allocated 15x to 30x their trading capital within the predetermined cap.

For example, the first position is to be rewarded with 30x the trader’s minimum balance for the month to a maximum of €300,000 allocation. This means that if you finish in the first position with a minimum balance of €1,000, you will get €30,000 instead of the full €300,000.

If you finish in the 60th position which has a 15x multiplier with the same minimum balance of €1,000, you will get €15,000.

To know the exact amount you will receive, click on the info tab next to the “60 Darwins” label to bring up the table displayed below. This table will also show you the minimum balance you need to get the full allocation for any spot in the top 60.

Darwinex Darwinia

Now that we know the Darwinia rules, what are the factors that will determine if you are even qualified to challenge in the first place? They are as follows:

Correlation

If your darwin takes similar trades to another darwin, with both also having identical equity curves, the darwin with the lower D-score will not be qualified to take part in the Darwinia challenge.

This is called the correlation penalty. The algorithm can occasionally be erratic so don’t fret when you see that you have been disqualified based on this. It is usually short term, sometimes resolving in days especially when the correlation is circumstantial at best. If the correlation penalty remains, however, stay calm and wait for the next month’s challenge.

Divergence

If the calculated divergence on your darwin is 0.5% or higher, you will not be able to take part in the Darwinia challenge. High divergence means that your results will be significantly different from the investors’ results and Darwinex doesn’t like this. You can see the divergence on your darwin on the darwin page as show below.

Divergence

These are the two factors that can disqualify you from the Darwinex Darwinia challenge.

Darwinex Darwinia FAQs

I have a high return so why am I not in the top 60?

If you have a high return but can’t get a place in the top 60, it is almost certain that you are being penalised by any of the other two primary ranking factors of D-score and Regularity.

Can I be disqualified from Darwinia without notice?

Yes. If your darwin’s divergence hits the 0.5% threshold, it will be removed from the challenge immediately without any notice. The same applies if the correlation penalty hits the darwin.

Can the money won from the Darwinia challenge be removed before the allocation time is up?

No. The money allocated during the Darwinex Darwinia challenge will remain for the full six months as long as you still maintain your live account.

When will I be paid performance fees for profits generated on the Darwinia allocation?

The performance fees generated on the Darwinex Darwinia allocations are paid quarterly. So you can expect to be paid three months from the date of the allocation if you have made a profit.

Is the Darwinex Darwinia €4.5m monthly allocation real money?

This is a question that plays in the minds of most traders when they first sign up.  The truth is, the Darwinex allocation is paper money. They did not hide this fact because the allocation is called “Notional”.

There is no way Darwinex can afford to throw around €4.5m every month, taking into consideration the size of the brand and of course the fact that only a few traders make a profit on these allocations. So they award paper money, but if you make profits on the paper money, they pay you real money!

So instead of spending €4.5m every month to run this competition, they are paying around €25,000-€50,000 a month to deserving traders.

Conclusion

The Darwinex Darwinia trading challenge is one of the best in the industry. However, many traders that joined Darwinex to try their hands at the challenge ended up disappointed because they didn’t know all the rules at first. We believe this post has gone a long way to disclose all the details!

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