Darwinex plans changes to DarwinIA
Darwinex has announced planned changes to DarwinIA.
DarwinIA will become a two-level programme that rewards traders from the beginning and as they build their track record. The first level will be called DarwinIA SILVER, and the second will be DarwinIA GOLD.
DarwinIA SILVER has been created so that traders have a chance to receive an allocation in their very first participation. This will be the biggest advantage for clients in comparison with the current DarwinIA where traders have to hold a much longer track record to enter the programme and vie for an allocation.
To receive a seed capital allocation in DarwinIA SILVER, the DARWINs will have to meet a minimum required rating. This rating will consider:
- The return of the current month.
- The cumulative return of the previous five months.
- The maximum drawdown during the last six months.
This new approach to defining the DARWINs that will receive an allocation emphasizes the importance of maintaining a consistently good track record over time, rather than penalizing traders for a single bad month. Furthermore, Darwinex finds it’s important to incentivise traders earlier on in their journey and this new calculation will do exactly that.
The Second Level Of The Programme: DarwinIA GOLD
When you reach 8 months of track record with consistent performance, that’s when Darwinex starts considering you as a promising trader to present to real investors.
Unlike the SILVER level, to receive an allocation in DarwinIA GOLD, Darwinex will only consider the return during the current month. You’ll participate for allocations among the top traders on the platform, so the important factor will be to see who outperforms the market month after month.
The allocations in DarwinIA GOLD will be higher than the ones in DarwinIA SILVER, as high as €500,000 a month.
At present, Darwinex traders and Darwinex Zero subscribers participate in separate versions of DarwinIA. However, both types of traders need to execute their trading skills and good risk management habits in ‘exactly’ the same way, in order to be allocated seed capital. The fact that one community uses a virtual money account and the other uses a full live brokerage account doesn’t change the way they need to deploy their trading skills to attract capital. The long-term vision is a common denominator to stay at the top on both platforms.
The two DarwinIA Seed Capital Allocation programmes will come together so traders in both platforms will have equal opportunities to achieve seed capital and make their journey into asset management more gradual, fair, and rewarding. Effectively bringing together the two Darwinex trading communities means that they can participate together and pit their skills against each other to get those seed capital allocations.
So, in the future, you’ll see DARWINs with the regular 3-character ticker symbols and also DARWINs from Darwinex Zero with 4-character ticker symbols.
Darwinex will also define a new treatment for migrated track records for DarwinIA SILVER and DarwinIA GOLD. The measure is not retroactive, meaning it will only apply to DARWINs that have been approved from the implementation onwards and are migrated.
- In the SILVER level:
The rating in DarwinIA SILVER will be calculated based on the returns obtained by the DARWIN from the migration date to Darwinex, i.e., from the first trade executed in Darwinex’s account. The only advantage compared to a DARWIN that has always operated in the ecosystem is that the creation of the DARWIN will be more immediate because Darwinex can calibrate the risk engine with the track record accrued in another broker.
- In the GOLD level:
To determine if a DARWIN can access DarwinIA GOLD, Darwinex will consider the migrated track record, but it will be done after a rigorous evaluation of the DARWINs that meet the requirements to participate in the GOLD level or are close to achieving them.
The new DarwinIA SILVER and DarwinIA GOLD are expected in September 2023, but may need to be pushed back to October.