Ingenious and unorthodox methods of advancing retail trading platforms and brokerages are sweeping the FX industry this year, with Darwinex being a prime example of a company which boldly does not follow the crowd.
Today, the firm has introduced a cash prize for what the firm refers to as DARWINs, an acronym for Dynamic Asset and Risk Weighted INvestment, which have the highest appeal to investors.
DARWINS are created by strategists, and when an underlying strategy places a trade, Darwinex replicates it on behalf of DARWIN investors with minimal latency.
Building on the company’s initiative which came to fruition in August this year in which strategists were able to conduct alpha testing in demo mode, the new DarwinIA prize is intended to remunerate developers of investable DARWINs, as the company recognizes that the process of establishing an investable DARWIN is time consuming, resource hungry and requires perserverence.
In essence, Darwinex has introduced the system as a means of encouraging strategists that their effort is constructive in the long term.
The company considers this method not only a way of encouraging good DARWINs to play a prominent role, but also to encourage other investors to look up to the providers of good DARWINs and therefore follow their strategy and generate trading volume, whilst profiting at the same time.
The prizes are payable in cash, so that the developers can put it to whatever use they wish, with the amounts being paid to the 10 best DARWINS being displayed on Darwinex’s website along with the elements that determined them as such, as publicly available information.
The criteria displayed includes the level of the strategy, its investable attributes, the return on investment by medium risk DARWINs, as well as an activity factor which penalizes DARWINs with low activity for the month.
LeapRate today spoke to Juan Colon, founder and CEO of Darwinex, who explained “Investable traders are the lifeblood of the DARWIN Exchange. For us paying traders for trading with us for the long term feels natural. DarwinIA is a natural step our own evolution: we put our pocket where our diagnostic algorithms say.”
Too many independent traders never reach their full potential because they’re lured away from long term investable thinking. Hopefully, this will encourage everyone to not mistake high-leverage trading with a sustainable path towards their trader evolution” cpncluded Mr. Colon.