The Darwinex brand is focused on helping profitable forex traders to make more money from their skills through its Darwinia competition and the possibility to get third-party investments. As a new trader on Darwinex therefore, you will most likely be engrossed in fantasising about the amount of trading capital you could get from the Darwinia competition and the investors on the platform.
However, it only takes a few months to see possible challenges that can make your dream of the “profitable trader lifestyle” so near, yet so far. The way Darwinex is structured means many traders are not aware of these challenges. So they feel a bit disappointed when they find out they have built up their hopes way too much.
Although the Darwinex Community is reasonably active, no one has ever made a post for traders moving to Darwinex the first time. This post is borne out of our experience on the platform. It will help traders signing up to Darwinex newly.
Note: This post is for traders that will start a new account and those that will “migrate” their accounts with a D-Score lower than 70. Such traders probably haven’t been on an investor platform such as Darwinex before. If you have an account with D-score 70+ on migration or if you are a prominent professional trader already famous in some circles, some of the points raised here (if not all) may not apply to you. If you haven’t read our post explaining the Darwinex attributes, please do so first before proceeding to read this.
Darwinex is an Excellent Broker
You will rarely have any operational issues with Darwinex. When they do arise, you can trust their world class support to resolve them speedily. This is not saying we don’t have things we’d like them to do better but the fact is, there aren’t many better brokers around.
You Need Patience While Building your Darwinex D-score
Unless you are a scalper or one with a short and fixed duration for trades opened, you will have to wait for at least 9 months for your EX (which is a significant driver of the D-score) to get to 10.
If you trade longer term with no fixed duration on specific trades, you could need up to 2 years or more to have EX 10. Just be patient and focus on your trading. Which brings us to the next point…
Ignore the Frustrations of a Slow EX Growth
Regardless of your mental strength as a trader, you will be faced with the temptation to alter your trading style to hit EX 10 faster (unless you don’t have the “peanut problem” which means you don’t really care about investments and external funding at least immediately).
We can guarantee from our own experience and the experiences of other traders on the Darwinex platform, that if you try this, you will regret it. Trade the way you have always done and allow the Darwinex metrics to sort themselves out.
Don’t be Too Quick to Publish Your Darwin
Of course, the main reason a trader will publish a young Darwin quickly is to start getting investments as fast as possible. However, few investors will ever look at a young Darwin with a low EX unless you are riding double-digit returns in the immediate term (1-3 month window).
So wait until your EX has grown to at least 3-4 or at least when you have obtained the >50% badge before publishing. This will also ensure you don’t dwell too long on the disappointment from a lack of investments. When you have built EX reasonably and have made more than 50% return, you will automatically start getting some look from investors.
Combining the “feeling” that comes with seeing no investors and trying to navigate the other pressures that come with being a trader on an open platform like this, is not good. Of course, you should do the opposite of this advice if you need the transparency that comes with listing a Darwin to stay disciplined in your trading.
Darwinex Investors are not Patient with Young Darwins
…Or unpopular ones. So do not worry about anything if you find them dumping your Darwin as soon as you have a minor drawdown. This may stem from the fact that they have been burned in the past by young Darwins who hit a small drawdown and then crashed, but that’s just how it is.
If you can get to EX 10 and a D-score greater than 70, they MAY be less likely to run away especially if there are already dozens of other investors on your Darwin.
Lots of Small Investors Trump one Big Investor
Don’t roll out the celebratory drums when one investor puts in €100,000 in your early days when you are still struggling for investors or even when you are fully established. It often means that they are impressed with your recent substantial return and think you can do it every month. As soon as you have a drawdown of any kind, they will exit.
On the Darwinex platform, it is better to have 25-50 people pooling together €75,000 as investments for you than having 2-3 people bringing €250,000. The former group is more likely to be a robust pool of investors that can ride through a drawdown. The latter is more likely to be a small group of affluent investors just looking for the next quick profit.
Ignore Investor Behaviour
Don’t spend time trying to understand investor behaviour on Darwinex. Even older traders are yet to decipher everything on that front. The only two things you need to know are:
- They are most wary of new Darwins that do not have years of history and a high D-score already.
- They like an elegant equity curve. If the sleek equity curve is accompanied by a single digit drawdown, even better.
Similarly, don’t worry about investors trading your Darwin. These are investors that try to buy and sell Darwins the way we trade currency pairs. Unfortunately, in many cases, they end up losing money.
Just stay patient and keep delivering good results and investors will follow soon enough. It could take a month or six, but good trading is usually rewarded.
Maintain Trading Behaviour Regardless of Invested Amount
Don’t make the mistake of altering your trading because you have 5-7 digits in investment sums. Of course, you want to retain the investors but don’t go out of your usual trading methods to do that.
Reducing or increasing risk, for example, or being quick to take profits in a bid to preserve gains will come back to bite you sooner rather than later.
The Darwinia Competition is Great!
It has helped many traders with investments before investors started noticing them and it remains the biggest provider of performance fees for traders on Darwinex.
When you win any Darwinia allocation, you don’t have to worry about it disappearing for the next 6 months.
However, you need a D-score of at least 65 to challenge for Darwinia consistently. Some new traders may be naïve to think that they can start challenging immediately they open an account. No.
You will have to build your EX to 10 first. Even when EX is already 10, you still need other metrics to line up and give you a high enough D-score. Even when you have a high D-score, parameters like Regularity can massively impact your final finish on the Darwinia table.
If your D-score is above 65, focus on getting many good months in a year. If it is still below that, focus on your trading and building the account while admiring winners of Darwinia each month 😀
Of course, some people win Darwinia allocation with D-score lower than 65, but that is rare and requires a month with double-digit returns. Even at that, you will rarely get higher than the €100,000 level. Watch out for our full post on the Darwinia competition!
The Darwinia rankings model has generated a lot of debate on the Darwinex forum and elsewhere, but it is what it is. The company sets the rules and can change it at will. In fact, many new traders are left sad when they discover the way the rankings operate. Now that we have told you what to expect about the Darwinia, you can manage your expectations better.
Don’t Get Intimidated
Do not get intimidated by the fact that there are many excellent programmer-traders on Darwinex, some of them with big websites and physical offices.
Good manual traders sitting behind their single Laptop at home, who also don’t know a line of code, exist. At the end of the day, positive returns are what matters.
Whether you are making gains with a sophisticated EA trading from a Skyscraper office or entirely manually trading from your kitchen table, it is not the concern of savvy investors.
Darwinex is an excellent broker offering a revolutionary angle to copy trading. However, it is not all champagne and roses especially if you are a trader that does not have 3+ years of track record. If that describes you, then you’ll need to stay patient, keep making pips and build your history. If you already have a decent track record, on the other hand, the sky is your starting point!