What is Darwinex?
Are you a trader of Darwin proportions? Darwinex is a new website where you can find out. Darwinex stands for Darwin Exchange which works to separate, select, excellent traders from the rest and turn them to excelling investors, or Darwin, namely Dynamic Asset and Risk Weighted Investing. Darwinex brings crowd sourcing to trading, describing itself as a “crowd sourced marketplace.” The goal of this is that crowd sourcing benefits from taking everyone’s talent to help everyone achieve the best trading results. Darwinex describes itself as:
“Independent traders exchanging profits with DARWIN investors. It’s technology democratising financial markets for human evolution.”
Darwinex Financial Revolution
Darwinex explains that its vision stems from a financial pre-history where financial markets were managed by the system and were quite “cosy”. This system managed everyone’s savings and it grew for decades growing to a massive size. But then the internet happened and that led to the empowerment of the masses. People were able to share information online and manage investments differently. It was possible to bypass the system that had been in place for so long, and crowd sourcing emerged to allow people to invest in worthy causes. During this time some people came across financial trading, being enabled to do so from the comfort of their own homes, through online approaches. The internet therefore drove a massive change. The greatest independent traders were able to repeatedly and systematically outdo the market but they were not getting noticed because they were hidden. However, then an idea arose, based on the concept of sharing talent to help everyone save, and increase the opportunities for investors. This led to what the company describes as the “Darwinex financial revolution”. Darwin was born, certifying the talent of great traders, which benefitted from the capital of investors while still held onto intellectual property of these great Darwins. As a result of all this the organisation explains that Darwinex fast tracks and provides certification for investable traders, allowing them to “scale their skill” with investor capital. This all falls under UK FCA regulation, and the ultimate end goal is to potentially shape financial market evolution.
Obviously the link to Charles Darwin is significant. The Darwinex concept takes the evolutionary ideas used in Animalia and pits traders against one another to vie for the top position, where only the fittest succeed. The way that you can find out is undertaking a trading challenge that uses gamification, and through this your performance gets assessed and ranked. Not only this but you can also win cash prizes through taking part. Darwin competitors are ranked on experience, performance, risk management, timing, consistency and scalability, as well as return achieved through medium risk and volume of activity. Yet trading performance and excellence of strategy are not the only indicators of success in Darwinex as explained, and so traders that just have a spell of good luck can be separated from those that are really performing to a high standard consistently.
As with any start up company, but particularly one that relies on volume of participants, the initial goal of Darwinex is to get sufficient traders ranked in the database. By quarter three the aim is to have enough investors on the platform to be able to launch a list of Investable Darwins. These people are those traders who have achieved well in the six criteria already described. This is excellent for these so called Investable Darwins because they will be highlighted as being those that provide good risk reward achievements on returns over time, making this platform great for social trading. The reason for doing all of this is that at a later stage Darwinex will offer a list of investable strategies, which are basically the Darwins that have been identified, and investors will be able to get matched up with these Darwins in a manner that is linked to their preferences regarding risk.
The problem that Darwinex seeks to solve is that it can be difficult to identify great traders, and these people can be obscured among the masses. The ocean of different ways to identify good traders makes the matter even more complex. A real challenge is being able to tell between when a trader performed at an exceptional standard, or when that trader really just got a lucky break and made an excellent return. Darwinex seeks to address this by providing extensive rankings of traders.
Currently Darwinex introduced DarwinIA 2.0 Capital Allocation contest, where each winner will get capital allocation. 320K will be distributed among 16 best traders monthly. Each DARWIN will earn 20% performance fee on the profits generated.