Darwinex UnCut: Recent Episodes
Darwinex
Warning: this is a #TraderMovement in progress. Includes raw, experimental, (but ZERO bullshit) content.
Trading is a difficult business, making a career of it even more so. In this episode, Ali Saif (@integracore2) Martyn Tinsley (@TradeSignalMachine), the Trader behind the WFJ, TRO and OOP trading strategies (DARWINs), shed light on the reasons that lead to well-intentioned traders developing false expectations (and what to do about them!).
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast-description-above-fold&utm_content=one-trader-to-another-podcast-martyn-trading-career-reality-vs-hype-ep6
Watch this podcast on YouTube: https://youtu.be/zM2yuiNriCM
Listen to this podcast on:
Spotify: https://open.spotify.com/show/5aCI0bRxqq8GPgusuGHwBq
Apple Podcasts: https://podcasts.apple.com/us/podcast/one-trader-to-another/id1569476207
SoundCloud: https://soundcloud.com/darwinex-uncut/sets/one-trader-to-another-podcast
iVoox: https://www.ivoox.com/podcast-one-trader-to-another_sq_f11267072_1.html
-- The Alpha Team at Darwinex is composed of retail traders just like you, individuals who’ve navigated through many a backtest and trading strategy, style, news release, economic crisis, and traded most financial asset classes.
Their trading histories are publicly available for anyone to see on the DARWIN Exchange, verified and certified by Darwinex.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=one-trader-to-another-podcast-ep1
They’ve been at several Brokers before arriving at Darwinex, making it their home, trading environment and capital raising ecosystem all in one.
They’ve built track records over many years and invested tens of thousands of hours (and continue to) in improving both their trading process and their psychologies to match.
They’ve used most popular trading platforms and APIs, and experimented with various different types of trading strategies in the Stocks, Futures, FX and CFD markets.
They’ve seen practically all there is to see in the world of commercial trading bots, expert advisors, indicators, CTAs, education, forums, courses and prop firms.
Leveraging Darwinex’s “Hedge Fund as a Service” offering, these same individuals can monetize their edge by attracting investor capital and charging for success - without the crippling legal and infrastructural costs that would otherwise prevent them from scaling their efforts.
In this podcast - the first of its kind at Darwinex - these traders get together to interview themselves!
Whether you’re a professional or just starting out in the financial markets, listening to this podcast means being a fly on the wall in a room full of people from whom you can glean information otherwise extremely difficult to find in the public domain.
If you aspire to scale as they strive to every day, tune in and hear them share what they’ve learned, for the benefit of traders and investors everywhere.
Enjoy the content and thank you in advance for your support and feedback!
If it brings you any kind of value, please consider leaving a like and comment on this video, share it on your social networks with anyone and everyone who aspires to scale their trading.
It takes one lone nut to start a movement.
Welcome to "One Trader to Another" - a podcast like no other.
Darwinex #Trading #AlwaysEvolving #TraderMovement #Trading #TradingEducation #TradingStrategy #AlgorithmicTraders #SystematicTraders #TechnicalAnalysis #FundamentalAnalysis #Stocks #Futures #StockMarket #FuturesMarket #StockTrading #FuturesTrading #DiscretionaryTrading #ManualTrading #AlgorithmicTrading
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
What if you could have your very own Trading API, one you could use easily, modify, extend and more to suit YOUR needs? DWX Connect makes this possible!
It enables algorithmic traders to:
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write trading strategies in any programming language,
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seamlessly link them to Darwinex,
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allow Darwinex to turn them into investable assets anyone can buy and sell
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compete for our Prop Capital Allocation,
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raise 3rd party investor capital, and
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charge performance fees on investor profits.
In today's episode, Roman and Ali take listeners and viewers through the vision behind the project, its ancestor (the DWX ZeroMQ Connector), how and why things have evolved, and a demonstration of DWX Connect's Data and Order Management capabilities!
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=podcast-description-above-fold&utm_content=one-trader-to-another-podcast-dwx-connect-ep5
-- Listen to this podcast on: -- Spotify: https://open.spotify.com/show/5aCI0bRxqq8GPgusuGHwBq
Apple Podcasts: https://podcasts.apple.com/us/podcast/one-trader-to-another/id1569476207
SoundCloud: https://soundcloud.com/darwinex-uncut/sets/one-trader-to-another-podcast
iVoox: https://www.ivoox.com/podcast-one-trader-to-another_sq_f11267072_1.html
-- Welcome to "One Trader to Another" - a podcast like no other.
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
Financial Trading needs to be treated like any other business, with discipline, adequate ongoing R&D to maintain your edge, employing sensible and consistent risk.
In today's episode, Roman shares his experience on some of the most common views traders have of risk and trading as a business in general, and how they ultimately affect traders' odds of survival in the financial markets.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast-description-above-fold&utm_content=one-trader-to-another-podcast-roman-ep4
Listen to this podcast on:
Spotify: https://open.spotify.com/show/5aCI0bRxqq8GPgusuGHwBq
Apple Podcasts: https://podcasts.apple.com/us/podcast/one-trader-to-another/id1569476207
SoundCloud: https://soundcloud.com/darwinex-uncut/sets/one-trader-to-another-podcast
iVoox: https://www.ivoox.com/podcast-one-trader-to-another_sq_f11267072_1.html
-- The Alpha Team at Darwinex is composed of retail traders just like you, individuals who’ve navigated through many a backtest and trading strategy, style, news release, economic crisis, and traded most financial asset classes.
Their trading histories are publicly available for anyone to see on the DARWIN Exchange, verified and certified by Darwinex.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=one-trader-to-another-podcast-ep1
They’ve been at several Brokers before arriving at Darwinex, making it their home, trading environment and capital raising ecosystem all in one.
They’ve built track records over many years and invested tens of thousands of hours (and continue to) in improving both their trading process and their psychologies to match.
They’ve used most popular trading platforms and APIs, and experimented with various different types of trading strategies in the Stocks, Futures, FX and CFD markets.
They’ve seen practically all there is to see in the world of commercial trading bots, expert advisors, indicators, CTAs, education, forums, courses and prop firms.
Leveraging Darwinex’s “Hedge Fund as a Service” offering, these same individuals can monetize their edge by attracting investor capital and charging for success - without the crippling legal and infrastructural costs that would otherwise prevent them from scaling their efforts.
In this podcast - the first of its kind at Darwinex - these traders get together to interview themselves!
Whether you’re a professional or just starting out in the financial markets, listening to this podcast means being a fly on the wall in a room full of people from whom you can glean information otherwise extremely difficult to find in the public domain.
If you aspire to scale as they strive to every day, tune in and hear them share what they’ve learned, for the benefit of traders and investors everywhere.
Enjoy the content and thank you in advance for your support and feedback!
If it brings you any kind of value, please consider leaving a like and comment on this video, share it on your social networks with anyone and everyone who aspires to scale their trading.
It takes one lone nut to start a movement.
Welcome to "One Trader to Another" - a podcast like no other.
Darwinex #Trading #AlwaysEvolving #TraderMovement #Trading #TradingEducation #TradingStrategy #AlgorithmicTraders #SystematicTraders #TechnicalAnalysis #FundamentalAnalysis #Stocks #Futures #StockMarket #FuturesMarket #StockTrading #FuturesTrading #DiscretionaryTrading #ManualTrading #AlgorithmicTrading
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
Both discretionary (manual) and algorithmic trading have their pros and cons. Which is right for you and why?
In this episode, we discuss precisely this and more!
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast-description-above-fold&utm_content=one-trader-to-another-podcast-roman-ep2
The Alpha Team at Darwinex is composed of retail traders just like you, individuals who’ve navigated through many a backtest and trading strategy, style, news release, economic crisis, and traded most financial asset classes.
Their trading histories are publicly available for anyone to see on the DARWIN Exchange, verified and certified by Darwinex.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=one-trader-to-another-podcast-ep1
They’ve been at several Brokers before arriving at Darwinex, making it their home, trading environment and capital raising ecosystem all in one.
They’ve built track records over many years and invested tens of thousands of hours (and continue to) in improving both their trading process and their psychologies to match.
They’ve used most popular trading platforms and APIs, and experimented with various different types of trading strategies in the Stocks, Futures, FX and CFD markets.
They’ve seen practically all there is to see in the world of commercial trading bots, expert advisors, indicators, CTAs, education, forums, courses and prop firms.
Leveraging Darwinex’s “Hedge Fund as a Service” offering, these same individuals can monetize their edge by attracting investor capital and charging for success - without the crippling legal and infrastructural costs that would otherwise prevent them from scaling their efforts.
In this podcast - the first of its kind at Darwinex - these traders get together to interview themselves!
Whether you’re a professional or just starting out in the financial markets, listening to this podcast means being a fly on the wall in a room full of people from whom you can glean information otherwise extremely difficult to find in the public domain.
If you aspire to scale as they strive to every day, tune in and hear them share what they’ve learned, for the benefit of traders and investors everywhere.
Enjoy the content and thank you in advance for your support and feedback!
If it brings you any kind of value, please consider leaving a like and comment on this video, share it on your social networks with anyone and everyone who aspires to scale their trading.
It takes one lone nut to start a movement.
Welcome to "One Trader to Another" - a podcast like no other.
Darwinex #Trading #AlwaysEvolving #TraderMovement #Trading #TradingEducation #TradingStrategy #AlgorithmicTraders #SystematicTraders #TechnicalAnalysis #FundamentalAnalysis #Stocks #Futures #StockMarket #FuturesMarket #StockTrading #FuturesTrading #DiscretionaryTrading #ManualTrading #AlgorithmicTrading
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
The Alpha Team at Darwinex is composed of retail traders just like you, individuals who’ve navigated through many a backtest and trading strategy, style, news release, economic crisis, and traded most financial asset classes.
Their trading histories are publicly available for anyone to see on the DARWIN Exchange, verified and certified by Darwinex.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=one-trader-to-another-podcast-ep1
They’ve been at several Brokers before arriving at Darwinex, making it their home, trading environment and capital raising ecosystem all in one.
They’ve built track records over many years and invested tens of thousands of hours (and continue to) in improving both their trading process and their psychologies to match.
They’ve used most popular trading platforms and APIs, and experimented with various different types of trading strategies in the Stocks, Futures, FX and CFD markets.
They’ve seen practically all there is to see in the world of commercial trading bots, expert advisors, indicators, CTAs, education, forums, courses and prop firms.
Leveraging Darwinex’s “Hedge Fund as a Service” offering, these same individuals can monetize their edge by attracting investor capital and charging for success - without the crippling legal and infrastructural costs that would otherwise prevent them from scaling their efforts.
In this podcast - the first of its kind at Darwinex - these traders get together to interview themselves!
Whether you’re a professional or just starting out in the financial markets, listening to this podcast means being a fly on the wall in a room full of people from whom you can glean information otherwise extremely difficult to find in the public domain.
If you aspire to scale as they strive to every day, tune in and hear them share what they’ve learned, for the benefit of traders and investors everywhere.
Enjoy the content and thank you in advance for your support and feedback!
If it brings you any kind of value, please consider leaving a like and comment on this video, share it on your social networks with anyone and everyone who aspires to scale their trading.
It takes one lone nut to start a movement.
Welcome to "One Trader to Another" - a podcast like no other.
Darwinex #Trading #AlwaysEvolving #TraderMovement #Trading #TradingEducation #TradingStrategy #AlgorithmicTraders #SystematicTraders #TechnicalAnalysis #FundamentalAnalysis #Stocks #Futures #StockMarket #FuturesMarket #StockTrading #FuturesTrading #DiscretionaryTrading #ManualTrading #AlgorithmicTrading
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
Behind every financial trader is a human being with a story. It's this story that defines how they evolved over time, what events brought them to the world of financial trading, what choices they made and why.
In this episode, we ask Martyn Tinsley, the Trader behind the WFJ, TRO and OOP trading strategies (DARWINs), to tell us his!
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast-description-above-fold&utm_content=one-trader-to-another-podcast-martyn-ep3
The Alpha Team at Darwinex is composed of retail traders just like you, individuals who’ve navigated through many a backtest and trading strategy, style, news release, economic crisis, and traded most financial asset classes.
Their trading histories are publicly available for anyone to see on the DARWIN Exchange, verified and certified by Darwinex.
Learn how Darwinex empowers Traders: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=one-trader-to-another-podcast-ep1
They’ve been at several Brokers before arriving at Darwinex, making it their home, trading environment and capital raising ecosystem all in one.
They’ve built track records over many years and invested tens of thousands of hours (and continue to) in improving both their trading process and their psychologies to match.
They’ve used most popular trading platforms and APIs, and experimented with various different types of trading strategies in the Stocks, Futures, FX and CFD markets.
They’ve seen practically all there is to see in the world of commercial trading bots, expert advisors, indicators, CTAs, education, forums, courses and prop firms.
Leveraging Darwinex’s “Hedge Fund as a Service” offering, these same individuals can monetize their edge by attracting investor capital and charging for success - without the crippling legal and infrastructural costs that would otherwise prevent them from scaling their efforts.
In this podcast - the first of its kind at Darwinex - these traders get together to interview themselves!
Whether you’re a professional or just starting out in the financial markets, listening to this podcast means being a fly on the wall in a room full of people from whom you can glean information otherwise extremely difficult to find in the public domain.
If you aspire to scale as they strive to every day, tune in and hear them share what they’ve learned, for the benefit of traders and investors everywhere.
Enjoy the content and thank you in advance for your support and feedback!
If it brings you any kind of value, please consider leaving a like and comment on this video, share it on your social networks with anyone and everyone who aspires to scale their trading.
It takes one lone nut to start a movement.
Welcome to "One Trader to Another" - a podcast like no other.
Darwinex #Trading #AlwaysEvolving #TraderMovement #Trading #TradingEducation #TradingStrategy #AlgorithmicTraders #SystematicTraders #TechnicalAnalysis #FundamentalAnalysis #Stocks #Futures #StockMarket #FuturesMarket #StockTrading #FuturesTrading #DiscretionaryTrading #ManualTrading #AlgorithmicTrading
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter(s)) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
With the year coming to an end and Brexit coming into force on January 1st 2021, we would like to remind you that Darwinex is Brexit ready. Here are some updates for both existing and new customers. Please note that these will be relevant only in the case of a no-deal Brexit.
No-deal Brexit for existing EU customers
What changes in your relationship with FCA-regulated Darwinex in a no-deal Brexit scenario? In short: nothing, if you’re an existing customer.
The FCA continues to protect your right to trade with us. Your monies remain with Santander UK, Natwest Bank or Sabadell UK in London. Your Funds enjoy FSCS deposit protection and Lloyd’s insurance for up to GBP 500,000. Brexit doesn’t impair your right to trade with counterparties in 3rd countries outside the EU. You could trade with Australian brokers, you continue to enjoy the right to trade with UK brokers.
No-deal Brexit for new EU customers
For Darwinex, a no-deal Brexit scenario means restrictions to market to new EU customers with our FCA entity. We’ll shortly share details of our new license in the EU, which will offer identical conditions to our UK entity.
Our FCA-regulated UK entity will, in any case, continue accepting EU customers whenever reverse solicitation applies. Reverse solicitation means traders and investors approaching Darwinex on their own initiative and Darwinex not having solicited them to trade or invest.
We’ve prepared a Brexit FAQ at https://help.darwinex.com/brexit-what-you-need-to-know#faq, feel free to send to info@darwinex.com any questions you might have and we’ll answer them for everyone’s benefit!
In this episode, we sit down with Narciso Vega, the architect behind DARWIN $ZVQ on the DARWIN Exchange: https://www.darwinex.com/invest/ZVQ
With a primarily institutional background, Narciso sheds light on the inner workings and methodology behind his team's R&D that's contributed to maintaining one of the longest trading track records at Darwinex.
From Python for R&D to taking signal to market via the FIX API, DARWIN $ZVQ showcases how algorithmic traders can leverage the Darwinex Technology Stack in novel ways without relying on any particular trading platform or programming language.
In this podcast, Darwinex CEO Juan Colón sheds light on the whats, whens, whys and hows of the Darwinex <> Interactive Brokers Integration.
Specifically, he talks about: 1) Exactly what the scope of the "integration" is, as regards Darwinex and Interactive Brokers 2) What motivated the decision to go down this road 3) Who is Darwinex's core target audience for this effort 4) How Darwinex+IBKR gives traders the best of both worlds, Darwinex and Interactive Brokers 5) What Phase 1 of the integration contains, and what future phases are going to contain + timelines 6) How Darwinex+IBKR is set to enable both existing and new IBKR users to legally attract investor capital, something not possible with just IBKR 7) How YOU, the trader community can contribute your valuable feedback and be part of the Phased Rollout!
Interested? Register to be notified at https://discover.darwinex.com/en-gb/darwinex-ibkr-launch-notifications
In this latest podcast episode, we sit down with Alberto Barea and Sergi Sanchez, the Providers behind DARWIN SYO: https://www.darwinex.com/darwin/SYO
The conversation looks behind the scenes, Alberto and Sergi kindly sharing insights regarding their company’s history, their Trading R&D process, and how SYO has evolved over time.
In particular, they emphasise the need for subjective input in systematic portfolio management, and in that spirit, share the exact steps they took in order to navigate the stormy volatility brought on by the COVID pandemic in 2020, market conditions that created havoc in the financial world.
Javier Colón explains the impact of the new D-Score on key Darwinex assets such as the Darwinia competition and Rebates.
He also explains how Darwinex makes proprietary capital allocation decisions, what factors influence the same, and the challenges Darwinex faces in deploying company capital vs those faced by individual investors.
Javier Colón sheds light on where the new D-Score leaves existing Investment Attributes at Darwinex.
Specifically, he sheds light on the Performance attribute's future, given the correlation to the new D-Score as a result of the latter's formulation via a DARWIN's Quote.
Javier Colón shares his experiences with DARWIN portfolio creation, his considerations, investment criteria etc.
He states that these findings are in no way the ONLY ways to construct DARWIN portfolios, and encourages the audience and the wider community to leverage the DARWIN API to improve upon the New D-Score, create their own if they so wish!
Javier Colón shares what Darwinex has learned through time and over various iterations of the D-Score that have lead to its current state as deployed on the Investor Platform.
He sheds light on the problems with the current D-Score, and how over time it became increasingly difficult to iteratively improve upon it due to its depedencies on Darwinex Investment Attributes.
In this first episode of the D-Score Series, Javier Colón talks about the history of Darwinex and all its Diagnostic Algorithms.
Javier takes listeners back in time to the origins of the D-Score and Darwinex itself, highlighting everything that has contributed to their evolution to this.
He sheds light on the need for Darwinex's Investment Attributes to begin with, what purposes they were intended to serve, and how the D-Score came about in its first form.
In this episode we go through a possible sequence DARWIN manager can follow to attract investor capital to their DARWIN. With focus on the stage where they go from one investor, which is themselves / DarwinIA, to two investors which already involves third-party capital. Brought to you by Darwinex: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=from-one-investor-to-two-investors
Most relevant subtopics covered in the video with their timestamp:
00:53 - The hardest leap to perform is to go from zero investors to one investor. 01:20 - The next quantum leap: to go from one investor to two investors. 01:59 - At some point, you sort of become meta popular in the sense that you are popular because you were popular and then you become popular. 02:35 - How to ease the burden from zero to one. 03:24 - How to ease the burden from one to two - empowering the people who want this the most, which is each and every one of the individual Darwin managers to seek people who trust them the most. 05:20 - Summary of the sequence of attracting investor capital presented previously.
For a transcribed version of this video, visit https://sonix.ai/r/xauLBDBodQdp5Bbhm4ftwm4o/share
Videos referenced: * On the legalities of attracting of promoting your DARWIN without and investment advisor license: https://youtu.be/lcoN663Xbhs?t=330 * Derek Sivers - How to start a movement: https://youtu.be/Qu3xpp5BbHU
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
- Join the Darwinex Collective Slack Workspace: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
- Join the Darwinex Community Forum: https://community.darwinex.com/
- Listen to Darwinex UnCut on Spotify: https://open.spotify.com/show/2rwQm9rv27AP5nq1OHdJhC
- Listen to Darwinex UnCut on Soundcloud: https://soundcloud.com/darwinex-uncut
- Subscribe to Darwinex UnCut via RSS: https://feeds.soundcloud.com/users/soundcloud:users:276931930/sounds.rss
In this episode, we describe the key differences between Traders and Managers - and why it's crucial for individuals to be able to identify themselves as one or the other (they are not one and the same).
Managers are Traders, but Traders are not Managers.
Brought to you by Darwinex: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=traders-vs-managers-investors-which-one-are-you
Specifically, Juan Colón - CEO @ Darwinex - explains how important it is for people to understand these differences, as they literally make all the difference between managing proprietary vs proprietary and 3rd party capital investments.
Key points in the video for your convenience:
01:59 - What is the difference between a Trader and a Manager? 05:29 - What do Traders do differently that doesn't make them Managers? 06:09 - What makes Managers different to Traders then? 07:59 - What is Darwinex looking for, Traders, Managers or both? 09:14 - Darwinex is for Alphas: Traders who already are or aspire to be, Managers. 09:57 - What do Managers need to be Managers and not just Traders? 10:21 - What is the difference between an Investor and a Manager? 10:50 - What Darwinex IS and what it ISN'T (very important to understand this) 12:03 - Who Darwinex is NOT for?
Resources referenced in the conversation:
1) What is an Alpha? (https://www.youtube.com/watch?v=xxsL3FLd06U)
We very much await your feedback here on YouTube, via voice message from https://www.speakpipe.com/Darwinex and on the community forum: https://community.darwinex.com/t/trader-vs-manager-vs-investor-which-one-are-you/7824
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
** Fancy joining a vibrant community of algorithmic traders, quants and data scientists focused on financial hacking? Join the Darwinex Collective Slack Workspace: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
If you've been trading for some years, chances are you remember more than one so-called "flash crash". A video by Darwinex (https://www.darwinex.com/). Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
This video is about what flash crashes are and how they come about.
We cover: - What can trigger a flash crash - What happens next, after the trigger event - What's the role of stop orders - How leverage exacerbates the crash
We also touch upon how liquidity fragmentation relates to flash crashes. We explain liquidity fragmentions with available information about US commission-free broker Robinhood.
To know more about liquidity fragmentation, read this letter by Interactive Broker CEO Thomas Peterffy at https://blog.darwinex.com/wp-content/uploads/2019/10/2018-IBG-AR-dragged.pdf.
Join our community of alpha providers and alpha seekers at https://community.darwinex.com/.
Join the Darwinex Collective Slack Workspace for Algorithmic R&D: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
Where is Darwinex going about blockchain?
To be clear, we have no plans to take Darwinex to blockchain yet. We have no clue how to do it.
But there're elements of our business model which are smart contracts, i.e. "blockchainable". E.g. the certification of traders' track record.
But there's much more.
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We're all about protecting traders' IP so they collect fees on their performance. But who vouches for Darwinex itself not replicating the IP without paying fees?
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Alpha producers bring a lot of value to Darwinex and get paid for it. This is fair. But is there room for making them also shadow shareholders of the company?
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Or sales guys who're good at attracting investors. Is there a way to reward that better than affiliate schemes?
In summary, Darwinex is as much by its customers as it is by its founders. Blockchain offers an opportunity to reward value that suits this model.
Are you a practitioner in the blockchain sphere or know someone who is? Please bring them on so we can have a conversation with them!
Join our community of alpha providers and alpha seekers at https://community.darwinex.com/.
Join the Darwinex Collective Slack Workspace for Algorithmic R&D: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
Darwinex has had a very clear ethos from its beginning. It's embodied by our logo featuring an owl (predator) and our animal avatars (evolution).
But let's face it, we haven't been able to bring this message through. Again and again, the market perceives us as a run-of-the-mill MT4 broker. Or, even worse, as a "social" trading / investing site.
Our recent experience with Wikipedia editors only confirmes it.
We want to change this. We've started working on Darwinex's repositioning on the financial landscape. In this video, Darwinex CEO Juan Colón shares in which direction we'll move. We still have to make a lot of decisions. E.g. create separate brands for the FX/CFD broker, the coming IB integration and the asset manager?
But we've distilled the foundations of the repositioning. Learn about it in this video and share your feedback.
Join our community of alpha providers and alpha seekers at https://community.darwinex.com/.
Join the Darwinex Collective Slack Workspace for Algorithmic R&D: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
In this episode, Darwinex CEO Juan Colón and CDS Ali Saif talk about the relevance of the % of clients that lost money in the last year, an information CFD-providing brokers are obliged to publish and update every 3 months, as an input when picking a broker.
Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
A well-meaning but somehow misguided effort by the regulator to take vulnerable people out of trading, this measure ignores that every trader who eventually becomes successful, needs to learn to trade first. And that during this period of learning, will lose money.
Juan analyses to what extent a broker can influence the performance of its traders, highlighting also the role of transaction costs and volatility on trader performance. ESMA's 2018 leverage limitation receives due credit as the real game changer when it comes to reducing client losses.
n this episode, Juan Colón - CEO @Darwinex - talks about the psychological, financial, circumstantial and emotional impact and side effects on traders, of the WAY the retail trading industry has been run by most brokers so far.
Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
He details historically, how him and his brother Javier Colón (co-founder of Darwinex) embarked on setting up Tradeslide back in the day, to empower traders to become better traders.
But the industry was full of brokers at the time who simply weren't interested at large in the same vision.
To be a venue that attracted "Alphas" - traders with the attitude, motivation and drive required to improve and succeed - Tradeslide NEEDED to become its own Agency Broker and hence CREATE the fair, level playing field that was missing in the retail trading industry, particularly in retail Forex / FX at the time.
The brokerage arm of Darwinex was hence born.
We are typically our clients' 3rd or 4th broker - and this is good for us (in one sense) because before getting to us, people have already had unfavourable experiences with most others and immediately appreciate the difference we bring to the table.
But historically, Traders should never have had to experience systematic exposure to conditions biased entirely in brokers' financial interest, ever. This industry norm to date has created psychological imbalance among traders on a grand scale.
We see too much in the way of distrust, discontent, bitterness and suspicion towards brokers as a result (Darwinex included).
The only way we have to make our case, that we are NOT in the business of profiting from people's misfortune, that we ARE in the business of empowering traders to succeed, is by giving them the tools and the level playing field necessary TO succeed.
But to accomplish this mission, Darwinex needs traders to viralize our message, to spread the word as far and wide as they can.
As an Agency Broker, Trader success IS our lifeblood at Darwinex, and the only thing that drives our growth - NOT sales, NOT buying traffic, NOT introducing brokers, NOT affiliate marketers.
To help us accomplish this difficult mission, of leveling the playing field while empowering talented Alphas to succeed and attract the capital necessary to SCALE their trading activity, Darwinex NEEDS YOU to grow this movement WITH us.
Darwinex relies EXCLUSIVELY on organic acquisition as a result.
If you're an Alpha, if you're a serious Trader looking to scale your game to the next level, to turn your talent into a scarce commodity where investors compete to back YOU with capital..
.. help Darwinex spread the word, and do it with gusto, with all your might!
Because YOU deserve it.
In this episode, Juan Colón - CEO @Darwinex - talks about what it means to be an "Alpha" (an individual with an attitude and zeal for continuous improvement), why Darwinex is home to every Alpha in existence, and how the Darwinex Community Forum serves as a base for Alphas to share in their collective growth and that of Darwinex.
He shares some historical context into what led Darwinex to acquiring a Broker license from the FCA back in the day, how the world really didn't need "yet another broker" at the time, but did in fact need Darwinex as the "last ever broker" you'd ultimately arrive at and stay for good, in your quest for trading / investing success.
Before Traders arrive at Darwinex (we are typically their 3rd or 4th broker) they've usually been through and experienced the brokerage industry enough to develop bitter personalities... or grown into "Alphas".
Darwinex, the Trader Movement and its Community Forum are home to Alphas.
Because at Darwinex, we ourselves are "Alphas".
Join our community at https://www.darwinex.com/
In this session, Juan Colon - CEO @Darwinex talks about why Darwinex charges higher swaps than market makers do.
Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
He describes this in the context of how - as an Agent - Darwinex is passing on the flow of risk from the client onward to the broader market, to external counter-parties that take on the other side of clients' trades (i.e. make the market they're trading), and how swaps factor into the picture.
Visit the Darwinex Community Forum to check out the whole Brokernomics series: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
In this session, Juan Colon - CEO @Darwinex explains what Swaps are, why and how they are charged to traders.
Check out the whole Brokernomics series in one place: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130
Leveraging publicly available information, Juan also sheds light on important considerations for the retail trading industry at large as regards swaps and transaction costs in general.
Visit our community forum at https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130/9
In late 2017, we embarked on a series of algorithmic trading tutorials that fast became a movement of its own.
What started off as a Pythonic solution for those not using MetaTrader's built-in MQL programming language to be able to access Darwinex liquidity via Python, became an open source project rich in code, examples and even multi-OS Docker images packaged and distributed by passionate algorithmic and quant community groups!
Three years on in 2020, we still see the same enthusiasm and passion for algorithmic R&D among users of the DWX ZeroMQ Connector project as we first observed in 2017 when it was launched, the first of its kind addressing a complex need with a free, open source solution.
Here is the podcast version of the VERY first webinar where the project was introduced in its bare bones state.. and from there on developed into what it is today.
Enjoy!
--
In this presentation, we demonstrate how to build a communications bridge between trading strategies written in non-MQL programming languages (e.g. Python, R, Java, C++, etc), using ZeroMQ.
ZeroMQ is a distributed messaging and concurrency framework, using which traders can create sophisticated distributed trading architecture otherwise difficult to implement in MQL.
It also therefore allows traders to send instructions to MetaTrader 4 from outside the platform, and leverage the features of non-MQL environments (e.g. Machine Learning toolkits in Python/R) to create more sophisticated trading strategies for execution via MetaTrader 4.
Get the latest updates to the DWX-ZeroMQ-Connector project, troubleshoot your applications, give and get help from fellow algorithmic traders and more, over at the Darwinex Collective Slack Workspace: https://join.slack.com/t/darwinex-collective/shared_invite/enQtNjg4MjA0ODUzODkyLWFiZWZlMDZjNGVmOGE2ZDBiZGI4ZWUxNjM5YTU0MjZkMTQ2NGZjNGIyN2QxZDY4NjUyZmVlNmU3N2E2NGE1Mjk
In this segment, Juan Colón - CEO @Darwinex talks about the technology stack used by Darwinex in processing tens of billions of $$$ worth of our trading community's order flow every month.
He describes in visual detail how data moves through our Hosting, Trading Platforms and Aggregation Engine layers.
You’re encouraged to send your questions and comments related to this series via voice message (https://www.speakpipe.com/Darwinex) or on our community forum: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130/7
In this segment, Juan Colón - CEO @Darwinex - answers one of the most frequent questions we receive from the trading community:
Do CFD's move the market?
Juan emphasizes the need to understand what CFDs are and how they operate, going through a series of examples demonstrating what exchange actually takes place during CFD transactions, and under what circumstances CFDs could indeed move the market.
You’re encouraged to send your questions and comments related to this series via voice message (https://www.speakpipe.com/Darwinex) or on our community forum: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130/6?u=bianka
In this video, Juan Colón - CEO @Darwinex - continues our detailed conversations centered around how a broker really works on the inside. Specifically, he talks about:
1) Client retention in terms of both users and equity, why it is fundamental to the success of Darwinex and the TraderMovement
2) Pre and post-ESMA impact on client outcomes, changes in the evolution of client equities and more
3) Why Darwinex has an Organic Growth strategy that relies on helping traders and investors become better versions of themselves, survive longer and further the reach of the ecosystem that is Darwinex, to the wider masses.
Juan goes through some very interesting thought experiments to make his point... viewers are encouraged to watch the video in its entirety for more details :)
In addition to Juan's inputs, Ali Saif (CDS @Darwinex as well as DARWIN Provider @integracore2 behind $PLF) briefly shares his experience as a trader of roughly 14 years.
He describes the early days of not knowing nor understanding how the markets nor trading truly worked, blowing accounts, experiencing various psychological dispositions from euphoria to disappointment etc... to how he evolved over time not just as a trader, but as an individual in the process... lessons that can only be learned by going through the process.
In this episode, Juan Colón - CEO @Darwinex talks about the current Darwinex business model, emphasizing the following:
1) Why Darwinex does not operate a B-Book (the vision, ethos and motivation behind the decision).
2) How Darwinex could be making millions of €€€€ more IF it were to B-book clients, and how under an Agency model, its ultimate vision is to help its clients grow and succeed.
3) How, for customers to succeed, Darwinex has to work hard to help traders become better traders.
4) How, for Darwinex to do that, it must endeavour to provide the best possible trading conditions to reduce transaction costs and help traders retain more of their returns.
5) Pre and Post ESMA impact.
6) Why Darwinex relies solely on Organic Acquisition, and cannot do direct or indirect acquisition of clients like other brokers who do operate B-Books.
Juan talks about Spread Capture Books, and makes a transparent case for WHY and WHAT Darwinex does operationally to provide better execution conditions for micro-ticket orders.. which its Prime Brokers cannot process directly to marketand are internalizing such flow themselves anyway!
Visit this post to leave your feedback or comment: https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130/5?u=bianka
This episode of the #darwinex-uncut Brokernomics mini-series is about organic acquisition of customers by brokers.
Very much related to the theme, our CEO delivers heart-felt reasoning behind WHY Darwinex came into being.
He sheds light on the motivation, the people behind the effort, why the world needed YET ANOTHER broker (to solve the problem he goes on to describe).
From Forex conferences in Cyprus, oddly good-looking girls and race cars, to brokers not wanting to source nor develop technology to actually IMPROVE trader and investor outcomes…
… Juan revisits history, describing how all of this drove him and his brother to setup their own retail brokerage to drain the swamp, to bring meritocracy and fair odds back to the retail financial landscape.
He PULLS NO PUNCHES in this video… people need to hear these things as they are, without sugar-coating, Armani suits and gimmicky sales effects.
Expect harsh truths, and lots of swearing… but most of all, the BRUTAL realities of the financial industry that Darwinex was born for - and works hard every day - to change.
For commenting, please go to https://community.darwinex.com/t/brokernomics-a-darwinexuncut-mini-series/7130/3
In this video, Darwinex CEO Juan Colón, talks about the motivation behind the DARWIN Asset Management Terminal launched recently.
He emphasizes how important a milestone this is in the evolution of Darwinex as an Exchange, in terms ranging from transparency, feedback mechanisms for traders serving DARWINs, monitoring investor outcomes and furthering meritocracy in the financial markets.
In this next segment of the Brokernomics Series, Juan Colón - CEO @ Darwinex - talks about:
- Indirect Acquisition (e.g. through affiliates / introducing brokers)
- How the Darwinex Business Model is not designed to support this form of client acquisition (and the reasons / conflicts of interest issues behind why this is so)
We're keen to reply to your comments on the Darwinex Community Forum:
In this 2nd installment on Brokernomics, Juan talks about Direct Acquisition of clients by brokers.
He sheds light on how much it costs for example, a highly reputable, major, well-established brand and broker like IG, to onboard a new customer, when on average the company breaks even after spending the money to onboard the customer, and what the cumulative lifetime value of that customer is to the company.
IMPORTANT NOTE:
The IG Group example in this conversation serves to both appreciate and demonstrate the scale at which large, successful brands like IG operate. Darwinex respects IG and congratulates them for their success, and does not consider IG as its competitor - different target client niches altogether.
Juan also explains why Darwinex does not and will not spend large sums in upfront advertising costs to attract clientele, relying exclusively on existing clients' recommendation and word of mouth.
We’d like to encourage you to let us know if you’d like us to cover anything specific in this series. Just reply here, on the forum (https://community.darwinex.com/t/brokernomics-a-darwinexuncut-miniseries/7130) or easily send us a voice message (https://www.speakpipe.com/Darwinex).
In this episode, Juan Colón - CEO, Darwinex - emphasizes the need for all retail market participants to understand how their brokers really work, inside out.
A broker is a complex machine, its inner workings not having much in the way of publicly available information.
With this series of conversations, Juan attempts to describe the inner workings of this complex machinery. The better you understand how we work, the better we are able to serve you at the end of the day.
We’d like to encourage you to let us know if you’d like us to cover anything specific in this series. Just reply here, on the forum (https://community.darwinex.com/t/brokernomics-a-darwinexuncut-miniseries/7130) or easily send us a voice message (https://www.speakpipe.com/Darwinex).
In this episode, Juan Colón, CEO @ Darwinex talks about how the capacity of your trading strategy scales as you attract more assets under management (AuM).
He discusses how the:
1) Assets 2) Times of day (high vs low liquidity hours), 3) Size and 4) Toxicity
.. of your trades affect the trading conditions you experience.
He also goes deeper into how Liquidity Providers make money, and how LPs look at the value and toxicity of order flow.
Please feel free to comment on this episode at the Darwinex Community Forum (https://community.darwinex.com/t/understanding-capacity-toxic-flow/7116).
Juan Colón, CEO @ Darwinex sheds light on how the current OTC (over-the-counter) Value Chain can be disrupted so as to generate better conditions for all parties involved.
Specifically, he talks about:
1) Darwinex's FX and CFDs franchise
2) A RECAP on how OTC markets work
3) Intermediaries (the chain of middle-men) involved in the journey of trades between traders and the market
4) Debunking the myth of more LPs equals more liquidity
5) How can the existing OTC Value Chain be optimized such that clients get even more competitive trading conditions, and Darwinex simultaneously gets additional revenue to re-invest into growing and making the current technology stack faster for clients, A.K.A. more competitive execution conditions.
Juan & the team are keen to receive your comments on The Darwinex Community's forum (https://community.darwinex.com/t/disrupting-the-otc-value-chain/7022) or via voice message (https://www.speakpipe.com/Darwinex). Questions via voice messages will be featured in coming episodes.
In this podcast, Juan Colón and Ali Saif follow up on last week's insightful comments (https://community.darwinex.com/t/interactive-brokers-darwinex-the-way-forward-in-2020/6912).
They talk about Darwinex's branding challenge and how we plan to brand the Darwinex&IB pack. Among other things, Ali reveals the reason he signed up as a user years ago.
The Private Label gets also a mention before they dive into Darwinex&IB details. They cover how it will work where Darwinex has a broker licence and how where it has none, like in the US. And also how exactly Darwinex will make money in this relationship.
Also, ever wondered how a merit-driven access to the best DARWIN assets could look like? (Considering limited capacity.) Listen to the episode to know more about it.
We're awaiting your questions and comments at https://community.darwinex.com/t/interactive-brokers-darwinex-the-way-forward-in-2020-2-2/6963.
In next week's episode, we'll cover the asset managemet terminal deployed this week. Send your questions replying to the relevant forum topic (https://community.darwinex.com/t/weve-launched-v1-0-of-the-asset-management-terminal/6943/6) or via a voice message from here: https://www.speakpipe.com/Darwinex
Enjoy!
Have a great trading strategy?
We'd love to have your strategy listed on our Exchange, enabling you to earn performance fees on investor profits!
More details here: https://www.darwinex.com/?utm_source=soundclou&utm_medium=podcast-description
2.5M in performance fees paid to date: https://www.darwinex.com/darwinia/hall-of-fame/users?utm_source=soundclou&utm_medium=podcast-description
We want 2020 to be year we integrate Interactive Broker's asset offering into the Darwinex ecosystem. Join Darwinex CEO Juan Colón and and CDS Ali Saif talk about the decisions we'll need to take in relation to what promises to become an important milestone in our evolution.
We're keen to receive your questions and comments on the Darwinex forum at https://community.darwinex.com/t/the-way-forward-with-interactive-brokers/6912 or via a voice message at https://www.speakpipe.com/Darwinex.
In this episode of the Darwinex podcast, Juan Colón (CEO) and Ali Saif (CDS) talk about Darwinex's Brexit strategy now that the UK will definitely get "Brexit done". They cover how it will affect: - New EU customers - Existing EU customers - New and existing non-EU customers
Feedback? Questions? Please post them on the forum and we’ll respond accordingly! https://community.darwinex.com/t/our-brexit-strategy-impact-timelines-regulation/6886
Photo by brainblogger / CC BY
MetaTrader backtesting can be tricky business for algorithmic traders. Follow these best practices to engineer robust, reliable trading strategies.
In this podcast, we discuss ways to backtest trading strategies in a robust manner, and what factors to pay attention to during the entire trading strategy development process.
Our discussion centers around:
1) Data Handling 2) Parameter Selection 3) Variable Factors
Read the associated blog post here: https://blog.darwinex.com/dos-donts-metatrader-4-backtesting/?utm_source=soundcloud&utm_medium=podcast&utm_content=backtesting-best-practices-for-algorithmic-traders
-- Are you a good trader?
We'd love to have your strategy listed on our Exchange, enabling you to earn performance fees on investor profits!
More details here: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast&utm_content=backtesting-best-practices-for-algorithmic-traders
1.9M in performance fees paid to date: https://www.darwinex.com/darwinia/hall-of-fame/users?utm_source=soundcloud&utm_medium=podcast&utm_content=backtesting-best-practices-for-algorithmic-traders
In this podcast, we describe the main features and behaviours of overfit trading strategies, and the risks they pose to both traders and DARWIN investors.
We discuss:
1) Types of Overfit Trading Strategies 2) Typical Features & Behaviours 3) How Traders Can Address Overfitting 4) How Investors Can Avoid Overfit DARWINs.
Read the associated blog post here: https://blog.darwinex.com/identify-overfit-trading-strategies/?utm_source=soundcloud&utm_medium=podcast&utm_content=how-to-identify-overfit-trading-strategies
-- Are you a good trader?
We'd love to have your strategy listed on our Exchange, enabling you to earn performance fees on investor profits!
More details here: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast&utm_content=how-to-identify-overfit-trading-strategies
1.9M in performance fees paid to date: https://www.darwinex.com/darwinia/hall-of-fame/users?utm_source=soundcloud&utm_medium=podcast&utm_content=how-to-identify-overfit-trading-strategies
Conventional trading performance measurement and backtesting via the Sharpe Ratio may create a risk-adjusted picture for traders, but isn't without its shortcomings.
In this podcast, we present an argument for why the Sharpe Ratio isn't the most optimal tool for measuring the performance of a trading strategy.
We discuss:
1) What is the Sharpe Ratio and what is it used for? 2) Where and how does the Sharpe Ratio fall short? 3) Alternatives for performance measurement available at Darwinex.
Read the associated blog post here:https://blog.darwinex.com/sharpe-ratio-strategy-performance/?utm_source=soundcloud&utm_medium=podcast&utm_content=reliable-trading-performance-measurement-sharpe-ratio-argument
-- Are you a good trader?
We'd love to have your strategy listed on our Exchange, enabling you to earn performance fees on investor profits!
More details here: https://www.darwinex.com/?utm_source=soundcloud&utm_medium=podcast&utm_content=reliable-trading-performance-measurement-sharpe-ratio-argument
1.9M in performance fees paid to date: https://www.darwinex.com/darwinia/hall-of-fame/users?utm_source=soundcloud&utm_medium=podcast&utm_content=reliable-trading-performance-measurement-sharpe-ratio-argument
6 months after the previous AMA session, here's the recording of the Winter 2018 Ask Me Anything session with Darwinex founders Juan & Javier Colón.
In previous episodes we talked about how liquidity aggregation works at Darwinex with every trade hitting the market, how our incentives are to always get you the best price and how we are a pure broker and not a market maker.
In this episode we talk bout the investor replica process.
After touching upon some basics (both traders and their followers/investors trade with our with FCA regulated brokerage, followers replicate, but do NOT know, underlying trades thus cannot bypass payment of 20% success fee of the trader) we discuss the following:
- Sequence of the replica process
- Divergence (difference between leader & replica price)
- Capacity of the trading strategy to get replicated bu investors (the more market liquidity you take, the more you move market price against you)
Every strategy gets to a point where it can’t take more capital. That’s when it’s reached full capacity.
In the case of news trading in retail, it's tens / hundreds of thousands before liquidity providers refuse to price either you or your broker.
Or we can go all the way up to Bridgewater Associates, Renaissance Technologies etc., given that some of the biggest asset managers stop accepting new investors. As a matter of fact, some of them have even STOPPED accepting investors altogether!
In this episode, yo'll be also able to undrstand:
- How we measure capacity.
- How we provide traders with choices when managing their DARWIN's capacity.
- How traders can make the most of the market, i.e. encounter te optimal debt vs. capital mix (how much leverage do you borrow to boost return on your own capital and how much investor capital is ideal to top things off on the above).
In this episode we talk about liquidity aggregation at our brokerage. We'll explain how the Darwinex broker operates, specifically where does the price you see and where the price you get come from when trading the assets we offer.
We'll cover liquidity aggregation for
- Exchange traded assets: Futures / DMA Stock CFDs
- OTC Assets: FX, Index CFDs, Commodity CFDs
We'll help you get the terminology right regarding:
- Last-look vs. no-last-look
- Asymmetric markets created by last-look practices
- Prime Broker
- Market making
On July 19th, 2018 we held the second Ask Me Anything (AMA) session at Darwinex. Founders Juan and Javier Colón answered to questions from Darwinex users.
On the blog you can find the list of questions and when they appear in the recording so you can jump directly to the ones that interest you.
In previous episodes we’ve talked about finding the 0.5% of needles in the haystack - they are the most valuable asset. They are the best trading data suppliers.
But then: is trading data supplied by the remaining 99.5% worthless? No, it isn’t. There is value to it.
There's an information asymmetry when it comes to data in trading:
- You know what you trade
- The House knows what you trade
- The House knows what everyone else trades
- You don’t know what everyone else trades
The individual trader is at a disadvantage to the House. He/she ignores real time crowd-sentiment. The stuff that moves the market in the short term.
What everyone would like to know.
The problem with market makers is that they use that information to benefit their shareholders. When the crowd moves sideways, they pocket the crowd’s spread. When the crowd stampedes, they hedge their risk and gift the crowd’s real time sentiment to Wall Street (to protect their shareholders).
This is why we’re not a market maker.
We are the custodian of our community’s data. Our shareholders can’t monetise that data directly without entering into a conflict of interest with customers unless we use that data AND pay our community a fair share in the profits it generates.
Listen to the episode to know the details of how we do this.
In the last episodes we talked about making traders investable, the rise of the fittest and telling the skilled traders from the lucky. But… how do you know it’s not a whole lot of BS? How to tell this apart from a marketing gimmick of the Cash for Dealers industry?
We get this a lot.
If you really think there’s good traders out there - prove it!
So we do the only thing we can do. Walk the talk. Invest our own monies in traders. This breaks our chicken & egg problem: no traders without investors, no investors without good traders.
So we’re the first investor. This attracts the first good traders which attracts better ones. It also reassures the first investors. Repeat.
How does it work? It’s the Darwinian Challenge - the rise of the fittest. It’s made up of:
- A capital allocation -> winners receive AuM
- A dividend -> winners are paid out cash every month
And we’ve paid out $ 1.4 MM to traders to date. The monthly run-rate is well in excess of EUR 50.000 per month at the moment.
On the DARWIN Exchange, every trading strategy “technically investable”. This does not mean that every trading strategy should be invested. Investors must find the needle in haystack!
Why investors and not Darwinex? Simple: as an Exchange, Darwinex does not give investment advice.
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about how DARWIN investors can tell skilled traders from lucky ones.
To pick investable traders in the DARWINian haystack is your call, not ours. But the Exchange makes information & tools available for investors.
Of these, in this podcast episode we'll cover the 12 proprietary attributes Darwinex has developed to evaluate trading strategies that are to be listed as DARWINs. 12 algorithmic filters to scan skill in the lucky pot. 5 years worth of quants invested in them!
Lucky traders delivered return yesterday but their luck runs out tomorrow. Good traders deliver future returns because yesterday’s returns weren’t luck.
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about how Darwinex manages DARWIN risk. In the previous episode we covered why DARWIN risk is managed independently from the trader.
How does Darwinex manage DARWIN risk?
We start explaining why VaR (Value at Risk) is a proper measure of risk. With 10% monthly VaR at 95% confidence, investors can go to a desert island without Internet next month, knowing that with 95% probability they’ll do better than -10% and with 5% probability they’ll do worse than -10%.
To explain VaR and expand on why it’s a proper measure of risk, we’re going to build up conceptually how we calculate it and compare it all along to partial measures of risk which is what most people use today.
We continue mentioning that DARWIN investors can set take-profits / stop losses on the DARWIN price if they want to bound their outcomes even further (at the expense of making them more likely - more on that later).
So, whilst DARWIN investors are in the desert island:
- The trader will have no incentive to change his risk
- He gets no cut in commissions
- He only earns on success
- He’ll ruin his score by changing his game
- Darwinex will control DARWIN leverage so that as DARWIN investors know those are the odds
- Apples to apples consistent with that DARWIN’s past
- Apples to apples comparable to past behaviour by every DARWIN
Prerequisite for an investable asset: risk is known, because it’s independently verified and managed.
Otherwise, it’s all a noisy haystack that smart investors won’t approach (they know better than gambling investor peanuts.
And the way is to build up our stack from:
- A trade -> trade level risk
- A position -> unit measure or risk
- A strategy -> proper measure of risk
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about the rationale behind the fact that DARWIN risk is managed by Darwinex, independently from the risk of a DARWIN’s underlying trading strategy.
The challenge with copytrading sites, PAMM accounts, Hedge Funds is delegating control over your risk. Someone other than you manages your unknown (your risk). And he’s got access to the Turbo Button: leverage.
How he manages the next trade is outside your control. You only know his past behaviour.
The best you can hope for is for him to continue his past (which is known) behaviour into the future (which is uncertain).
Neither of you know the future. And neither do you know his reaction to your unknown future.
“This strategy / hedge fund manager is low risk because it has a low drawdown”. Do you agree with that statement? If you do, watch The Deer Hunter and listen to this podcast episode.
At Darwinex, we don’t know the future either. But we control that future risk doesn’t deviate from past one.
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about where your money is when you trade through a broker.
When you google "FCA register Tradeslide Trading Tech", you'll see that:
- On the one hand, we are regulated as a broker having thus permission to hold client monies
- On the other hand, we are regulated as an investment manager having permission to manage investor decisions which we conditionally make available to trading customers via DARWIN. Investors pick timing: what to buy, when? We pick risk: investor leverage is controlled by Darwinex.
Listen to the episode to know what happens to your money when you deposit it through your broker's platform. We'll cover the bank accounts on which the money is received, the guarantees provided to traders and investors, how prime brokers extend credit (leverage) to us -and who they currently are-, and how their financial strength matters.
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about the rules at the DARWIN Exchange.
"Just as New York Stock Exchange doesn’t tell you to buy Apple over Microsoft, we don’t tell you to buy NTI over ERQ."
We cover the rules traders need to follow to list their strategy in the Exchange and tap investor capital.
We talk about how investors are not given investment advice and that all investment styles are welcome. They can passively track the ETFs, i.e. the DARWINs or can actively trade them.
We cover the toolkit the Exchange offers to both traders and investors so they can perform their fundamental analysis.
And finally, we talk about the way the rules assure that Exchange participants have their “skin in the game”.
In this episode, podcast host Nick “The Moose” Batsford and Juan Colón talk about the DARWIN asset or: how to have your own Hedge Fund without the legal burden of creating one.
We'll explain how to leverage investor capital legally covering:
- the value chain: trader ---> Darwinex (asset manager) ---> investor,
- and the mechanics: lead trade ---> replica trade
In this podcast episode we’ll explain how today’s retail trading industry works, and how Darwinex stands apart from the prevailing conflicted Cash for Dealers model. Hosted by Nick “The Moose” Batsford.
Why is the Cash for Dealers model still prevalent? Every trader needs a broker. Surely if this was so obvious everyone would know it? Why is the Cash for Dealers model still prevalent? Why isn’t this common knowledge? We'll talk about:
The "sausage factory" 1200 GBP to get first trade *3000 GBP per customer
The broker-dealer model Dealer is default mode and it's NOT necessarily wrong. Broker in high risk mode. This IS the problem. Conflict of interest in educating the lose peanuts crowd. *Conflict of interest in preserving shareholder capital over customer intellectual property.
The Darwinex model is a brokerage only model in which all flow is brokered away onto independent counterparties. We provide traders with execution information disclosing how quickly trades got filled and who’s on the other side of it.
One of the 4 ways we fast track traders is by providing execution by being firmly on customers side. We trade with customers, not against them.
However, the dealer model is more “efficient” in monetizing customer flow making more from average customers. This is why broker-dealers can pay more for advertising. This is also why no one hears this podcast, so, if you like it -> share it!
Next episode: How we legally overcome the peanut problem introducing the DARWIN asset class.
Subscribe to the Darwinex Blog here: blog.darwinex.com
How many millionaires do you know who’ve made millions trading financial markets? Probably lots of hedge fund billionaires. But how many have made it from home?
There are three reasons for this:
- It’s very hard to make 20% per year consistently over time.
- Very few Hedge Funds worldwide have delivered that performance over a sustained period.
- Compounding a small initial capital at 20% per year won’t make you billions.
This is the peanut problem. If you trade peanuts, the best you can make is peanuts - regardless of how well you trade them. In this episode, Juan and Moose talk about the financial ways that exist to solve this problem.
People with talent & passion are graduating from sports gambling and poker and are approaching the highest stakes casinos, i.e. financial markets. Over the coming episodes of this podcast we’ll talk about ordinary people (retail traders) who no longer trust biased advice from so-called “experts” who recommend on the basis of their own and not their customers' agenda. Some people have retail pockets but first class brains: amateur poker players who become professional FX traders as they outgrow online poker games and scale their bets or data scientists who approach the market algorithmically.