The Strategy
How does it work?
Our systematic strategies run on quantitative computational techniques to capture undiscovered market opportunities. Having an automated offers a high level of discipline, patience, and strong risk management. The greatest advantage is that you don't have to be in front of the screen, you can leverage your time in any way you wish.
The automated system is designed to be selective and patient, waiting for optimal market opportunities. When the best-case scenario, with the highest probability, is being unfolded, the system takes action.
Let's play
If you flipped a coin and you choose heads. Every time you win, you make $100. Each loss is $50. Would you play? The real question is, for how long would you play?
Trading instruments on the financial market can be similar. You know you aren't right 100% of the time. For this reason, we incorporate various risk strategies that offer us a high probability of gains. The focus is not only on the win ratio, the focus is on selecting the right type of move and capitalizing as many as possible.
We believe a strong culture of rigorous analysis and a process-driven investment approach is required. With this, we identify inefficiencies in the market.
Exploring The Probability Game
Quantitative research
The strategy is based on extended quantitative research. Our ambition is to harness data to reveal market opportunities in a quantifiable way. We measure the movements on multiple time frames, analyzing volatility at different times of the day, and measuring the price swings. Then we perform advanced computing and simulation capabilities. We test simultaneously 73 different setups with different profit levels and risk management. Our goal is to identify powerful insights and generate a competitive edge.
Risk analysis - example
There are many types of risk we consider. Please check our Risk Policy and Disclaimer. It's important to be aware of the risks involved.
We limit the Market Risk by trading only certain times of the day, no positions opened overnight or on the weekend.
We have strong Trading Risk Management, incorporating multiple closing strategies, stop losses, and trailing stops to maximize profits. The example offered is a three-month (Jan-Mar 2024) account. ROI is £188.1 which equals 9.4% ROI. The initial investment was £2,000.
The absolute drawdown was £25.46,-(1.3%) which means this is the maximum amount that was below the initial investment. The maximum drawdown was 109.54, meaning 5.4%. This is the maximal decline from the tops.
Our strategy is focused on times and conditions when higher profits are most probable. As you can see in the example above even if the win ratio was at 44.7% the system is still profitable. The average winning trade is £3.56, average loss trade is £ -2.32. However, the key is in capturing large moves. The largest win trade was £18.86 while the largest loss was only -£5.47 ( 0.3% of the account).
Reflecting our values, we offer this example to give you a perspective of the strategy and risks involved. In this example is a lower risk account. Profit 9.4% with -1.3% drawdown. Using maximum leverage (maximum risk) for the example above, the result would be 25.85% ROI for three months, -3.2% absolute drawdown, and a maximum drawdown at -12.5%. Some investors are comfortable with this risk.
Disclaimer: the past results don't indicate a similar result in the future. Please read our Risk Policy below and full disclaimer.
We are very proud of our results and happy to hear the satisfaction of our first investors. We manage three different accounts, with different risk profiles. These are real accounts Nov 2023-Mar 2024.
Results
Results for an investor willing to leverage the margin and higher profit.
Result: Profit 1,131.7 (17.9%ROI)
Another investor prefers slower growth with a lower risk.
Result: 452.6 (19.7%)
A third account is a smaller initial amount with maximum leverage and higher profit. (note: spike down/up is a withdrawal of funds from one investor and then replaced with the same amount)
Result: Profit 419.1 (40.9%)