Often, traders beginning their journey with Darwinex Zero misunderstand what the Calibration Phase actually is and what it entails.
It is NOT a test or an assessment that you pass or fail, rather an extended period of trading so that the Darwinex Zero risk engine can assess your trading strategy to calculate the Value at Risk (VaR) and risk profile inherently present in your system.
This process is to allow time for the risk engine to learn your behaviour and appropriately represent your trading strategy as an index at DARWIN level.
During the calibration phase you must complete 25 risk-equivalent trading decisions over a minimum of 15 trading days, so there is no fixed time limit to this process, but frequency of trades is a factor that will affect how long it will take as each trading decision will feed information to the risk engine. Those who trade more feed information faster, although if you're a swing trader please don't rush this phase as every trade will still count towards your DARWIN post-Calibration Phase!
What happens after the Calibration Phase?
Once you have completed the Calibration Phase, your DARWIN will be created automatically the following Monday to you completing the Calibration Phase and you will begin participating in your first edition of DarwinIA SILVER.
Once your DARWIN has been created, your strategy will be risk-adjusted to target a VaR of 6.5%, matching the volatility of the S&P500 index.
Once your DARWIN has been created, you may notice that your return and max drawdown are slightly different to what it was during the Calibration Phase or on your signal account (The MetaTrader account you place positions on).
This is because your DARWIN is a risk-adjusted representation of your trading strategy fitting a VaR of 6.5% and the initial risk multiplier will have been calculated from the data during your Calibration Phase.
Your risk level and multiplier can change over time as the risk engine looks back over the past 45 days so that it can adapt if and when your trading behaviour and VaR changes over time.
To finish off, the main thing we want you to understand is that there is absolutely no need to rush the Calibration Phase.
Yes, we know you'll be excited to compete against other traders in DarwinIA and earn allocation, but just remember EVERYTHING that you do during the Calibration Phase will count towards your DARWIN, so focus on trading well over anything else.
Want to dive deeper into Darwinex Zero? Don't forget to check our knowledge base and our youtube videos.
Safe Trading and Stay Sharp!
Darwinex Zero