How Much Capital Can a Trading Strategy Handle? | Darwinex Platform Tools

As profitable trading strategies attract investor capital, this results in larger market orders and can therefore increase the likelihood of slippage for third-party investors. For some trading strategies, the effect of this will be negligible, while for others it will be significant. This is a phenomenon that the majority of trade copying websites prefer to not mention. At Darwinex however, this effect is actively measured and reported back to our customers, empowering them to make informed decisions.
But what are the factors that determine whether or not a trading strategy will be affected by investor divergence, and what the capacity for third-party capital will be? All is revealed in this episode.
Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees:
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#Darwinex, #InvestorCapital, #Capacity, #AltInvesting, #Slippage, #InvestmentInTradingStrategies, #InvestorDivergence, #CapacityInvestableAttribute, #ThirdPartyInvestment, #TradeCopying, #Darwinex, #DARWIN, #Investing
This is Episode 60 in the Darwinex 'Algo Trading for a Living' Playlist.
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure:
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[@eTaupe]

Sir, the whole serie was really excellent.
I keep following each of your episodes
Thanks for the rigour and variety

[@richardbokele830]

The problem ist that long lasting position increases drawdown ( over week fees)

[@leonjbr]

Super interesting.

[@comptegoogle511]

For the past month, I've decided to shack off the rust off from my C++ course. I've done a BB strategy for my EA and my profit ratio is at 8.6 and my max drawdown is 10.25% in six months of backtesting. How good is that? The next step is to look for what kind of result I can obtain with leverage.

[@GanovAlex]

thanks, very clear explanation

[@positivenyt8533]

and thats why banks can make a maximum of 55% and retail traders are able to make more

[@MonsieurAltruist]

Too bad you can’t connect MT5 to get an immediate backtesting history on Darwinex. So I’ll wait for that.