A DARWIN is an investment strategy.
Whenever a trader (the DARWIN’s provider) trades a foreign currency, commodity or equity index on his account, investors in his DARWIN trade that asset, on theirs.
DARWINs and their underlying strategies share asset choice and timing, but differ in two aspects.
The first difference is the so called divergence: there is a 100 ms delay between original and investor replica trade, during which markets (can) move.
The second difference is risk management. DARWIN providers leverage their account as much (or as little!) as they choose, but leverage for DARWIN investors is set independently by Darwinex algorithms.
Our risk management algorithms manage investor trades’ leverage for all DARWINs to always risk the same on a monthly basis. This makes DARWINs apples-to-apples comparable for risk and about twice as volatile as a stock in the FTSE 100 or S&P 500.