How to build your capital as Strategy Provider – Introduction into Darwinex Zero

Disclaimers:
No part of this article is a recommendation or endorsement. StrategyQuant X is broker-agnostic, and does not endorse any specific broker, trading platform or prop firm. Past performance is not necessarily indicative of future results.

Darwinex Zero is the commercial name used by Tradeslide Technologies Ltd., a company registered in the UK with number 14398381. The contents of this article is for educational purposes only and is not to be construed as financial and/or investment advice.

Tradeslide Technologies Ltd is an introducer appointed representative of Tradeslide Trading Tech Ltd which is authorised and regulated by the Financial Conduct Authority (FRN 586466).

 

Modern prop trading is changing the world of financial market trading today. Just a few years ago, a potential trader had to have a relatively large amount of funds to make trading make any sense. Today, the situation is very different because modern prop trading firms or other companies are operating in the market. They offer virtually all traders options they never dreamed of a few years ago. What used to be the domain of investors and traders with large amounts of investment funds is now available to virtually everyone thanks to prop trading or virtual seed allocation program.

In this article, we would like to start the series how to get capital for your trading. There are many services that can provide external capital for trading and DarwinexZero is one of them.

How does DarwinexZero work?

Many traders don’t know it, but there are also virtual accounts. It’s neither a real account nor a DEMO account, it’s somewhere in between. You will experience REAL MARKET CONDITIONS, but you won’t be using any money for trading. The account comes with VIRTUAL MONEY and all the advantages of real execution, spreads, and more (we’ll get to that later). But, you are trading and risking ZERO of your own money.

Darwinex Zero opens a virtual account for you with equity of $100,000 and 1 million dollars in case of trading Futures.

They provide leverage of 1:30. This gives you enough leverage and capital to execute various strategies.

All without putting your own money at risk. Because you are NOT trading any of your money. To emphasize, the most significant advantage compared to a demo account is that here you experience:

Real market conditions, including slippage, spreads, swaps, and commissions. Sometimes, results on a DEMO may appear too good because it operates in a more favorable environment than the real market. As a result, a strategy that seems profitable on a DEMO may behave differently in reality, potentially not generating a profit or loosing massively. In the past, we had to adapt to these discrepancies, but a virtual account resolves this problem. This means you can now trade a full range of strategies, and as a bonus, you’ll get real results.

The trade history (track record) will be genuine. In fact, Darwinex Zero even begins:

Certifying your track record from the virtual account. In theory, you could choose to stay in the secure space of virtual money forever while earning real profits.

 

Virtual Capital Allocations

If you perform well and generate a profit from the initial virtual hundred thousand dollars on your account, Darwinex rewards you with additional virtual money known as SEED CAPITAL or ALLOCATIONS.

They are distributed monthly and accumulate over time. As you improve, your chances of receiving higher allocations increase.

Darwinex compensates you for generating profits with Performance Fees. It’s a common practice in asset management, typically ranging between 10% to 20%. Darwinex pays you 15% of the profits.

Importantly, this is now REAL MONEY. This system creates a potential source of passive income. It can become a nice supplement to real trading or to other services such as the MQL market.

The program through which Darwinex distributes seed capital is called DarwinIA. Virtual money is allocated based on your RATING and your position in the chart. This allows you to compare yourself with traders worldwide and aim to climb up the rankings.

 

DarwinIA SILVER

there is a guaranteed allocation of €30,000 for 3 months if you get a minimum rating of 75. Let’s explore what is achievable with our imaginary trader.

Darwinex looks for three criteria: the profit generated in the current month, the cumulative profit over the last 5 months, and the maximum drawdown in the previous half-year.

In the first month, let’s assume a 5% profit, with zero accumulated profit history and a -3% maximum drawdown. Surprisingly, the RATING is 76! Since it’s over 75, the trader receives the guaranteed allocation of 30k. So it’s possible to secure an allocation even in the first month of using the service.

In the second month, our trader achieves a 10% profit, resulting in a cumulative profit of 5%, and the maximum drawdown remains at -3%. The rating rises to 95, making the trader eligible for €165,000 of virtual allocations. And this is only the second month in Darwinex Zero.

Now, let’s consider a less successful scenario in the third month. If the trader faces a loss of -1%, the rating still remains pretty nice at 80. It’s thanks to the past consistency. He’s securing another allocation.

By the fourth month, he’s managing €225,000 of virtual capital (as it accumulates). If our trader makes a 5% profit, he will earn €1,687 per month!

 

 What is possible in DarwinIA Gold?

DarwinIA GOLD opens up completely different opportunities. The allocations here are more significant, with the potential to rise up to 500k and are granted for a straight 6-month period. This provides more time to generate profit or recover from losses. We observe that successful traders often achieve a cumulative allocation of 500k euros. You can achieve this in 8 months and potentially gain access to millions in investor funds to trade with.

Let’s consider a model example based on our observations. In this scenario, a trader received 1 million euros in cumulative allocations over the last six months.Of course, this is the higher league, requiring a really good strategy, but it is definitely achievable.

The journey doesn’t need to stop with simple allocations. Darwinex, also known as an asset manager, offers even virtual account traders a chance to be presented to investors on their platform.

 

Now we are getting to the part of why you would need to consider creating a track record?

The reason is the investors. Normally, traders don’t care; the usual way is just to trade their own savings. The journey in Darwinex could be different. It is not an unreachable goal, but you can really become an investible, recognized, and established trader.

Darwinex creates a specific avatar for each user, called DARWIN. Your Darwin will then be your biggest asset. Essentially, it’s your track record or, more precisely, an index comprised of your trading signals.

Darwinex Zero certifies your history, even if it’s from a virtual account. You will be presented as a DARWIN either in DarwinIA amongst other traders or to the investors. You can choose to build a reputation here, make yourself visible, or your company, your fund, if you have one. Having a DARWIN automatically means credibility to the investors. Without a guarantee from the broker, it wouldn’t normally be so easy for you to reach them. Attracting investors requires time, money, and connections, just to name a few.

On the other hand, if you don’t want to disclose yourself, you may also remain totally anonymous and still attract investors. Darwinex even hides your trades in real time, so there is no way to copy your trading. The strategy is your property forever. This is an advantage when you compare this service with the MQL market.

Let’s take a look at some of the DARWINs on the platform

Aatu, is a trader from Finland. He is currently managing capital from 1,600 (thousand and six hundred) investors, totaling more than 34 million dollars in Assets under management. You can search for Aatu’s DARWIN on the platform; its name is THA.  Investors come to the Darwinex exchange and simply buy his DARWIN as a ticker. You can picture it similarly to buying the S&P 500 index.

And he is not the only successful DARWIN. There are many more of them with investors’ capital exceeding 500 000 USD.

Another example is Bentra, professional poker player and longtime StrategyQuantX user. At the time of writing this article, Bentra has over 600 000 USD under management of money from real investors around the world.

The reality of asset management is quite different from the proprietary (PROP) trading industry. In Darwinex Zero, you cannot receive 90% of performance fees because they aim to prepare you for the world of real investors who are unwilling to give traders such a high percentage of their earnings. We must remember that attracting millions of euros can still result in substantial earnings, even with a smaller percentage.

We see traders using Darwinex Zero as a tool to boost their confidence in a safe environment and to train themselves under real market conditions. They use it in addition to classic live trading and PROP firm challenges because they report being able to execute long-term and more complex strategies there. Just recently, Darwinex Zero included futures trading (even on MT5!) and cash stocks, among others. These are examples of instruments that long-term traders, who wish to build and improve their track records, often use.

You can get the subscription on their website. And, of course, we are preparing more videos and articles for you where we will dive deeper into how to navigate Darwinex waters.

 

Authorised and Regulated by the FCA and by the CNMV

The Darwinex Broker and Asset Manager entities are authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom and by the Comisión Nacional del Mercado de Valores (CNMV) in Spain.

The Darwinex® brand and the www.darwinex.com domain are commercial names used by Tradeslide Trading Tech Limited, a company regulated by the Financial Conduct Authority (FCA) in the United Kingdom with FRN 586466, with company registration number 08061368 and registered office in Acre House, 11-15 William Road, London NW1 3ER, UK. and by Sapiens Markets EU Sociedad de Valores SA, a company regulated by the Comisiónn Nacional del Mercado de Valores (CNMV) in Spain under the number 311, with CIF A10537348 and registered office in Calle de Recoletos, 19, Bajo, 28001 Madrid, Spain.

 

Tomas Vanek

Tomas Vanek, founder of QuantMonitor.net, is a visionary in automated trading. Driven by a passion for efficiency in finance, he created QuantMonitor.net to offer robust, real-time monitoring solutions, simplifying trading strategy management for traders of all levels. His innovation is changing the landscape of algorithmic trading.

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