The awareness of dealing with markets increasingly driven by machines and algorithms instead of human beings, already for many years now, has led us to undertake a long process of adaptation to this trend, with the birth the first of five automatic trading softwares, called I-ALGOTRADE – entirely dedicated to stocks and index futures – which gave the name to the whole project.
It was not an easy choice, both for a certain diffidence to entrust the entire management of your own portfolio to a software, and above all for an objective difficulty in having to abandon a path of almost twenty years of discretionary trading. As usual, it was the analysis of cold statistics that eliminated all hesitations and doubts, given that the last years of activity had shown constantly deteriorating results, operating costs (commissions, leverage, etc.) in continuous growth and above all a tangible difficulty to manage the frequent excesses, the apparent irrationality of some phases and the very strong intraday market noise created by high frequency trading and algorithms in financial markets. Psychological component and emotional stress have played a crucial role in the choices made: because in trading not only the results matter – though fundamental – but also the HOW these results are obtained!
Almost complete elimination of psychological component and emotional stress in discretionary trading, was certainly the most positive element introduced by the arrival of new softwares. But it was not just this: the path taken, which led to the development of five automated trading softwares, has brought noticeably higher results not only compared to the best years of discretionary trading, but especially compared to those that were initially the best expectations.
Without a doubt, the choice to develop softwares with different characteristics, optimized for the type of financial instrument, proved to be a winning choice:
I-ALGOTRADE (the first one developed, which then gave the name to our company) dedicated to the large cap stocks of ITALY-USA-GERMANY and futures of the main international indices, particularly NASDAQ 100 and DAX;
FOREX MACHINE, dedicated to the main currency pairs of the forex market, especially EUR/USD, GBP/USD and USD/YEN;
CRYPTORAPTOR, dedicated to the top 20 cryptocurrency market capitalisations, with 50% reserved for the first 3 caps, namely BITCOIN, ETHEREUM and RIPPLE;
MID SMALL CAP STRONG MACHINE, software designed for trading – exclusively in certain market phases – on mid-small cap stocks ITALY-USA;
MID SMALL CAP CRYPTORAPTOR, dedicated to mid and small caps of the cryptocurrency market.
The I-ALGOTRADE project was born with the idea of offering the added value given by our software to those who decide to benefit from our Algoselection services, designed specifically for traders and investors. Not only that, we are in the process of developing a proprietary app in the future, which will give the possibility to offer a mirror trading service linked to our softwares, and eventually setting up an investment vehicle driven by the five software of I-ALGOTRADE.
How will our Algoselection services be set up?
We are aware that trading is something very personal and subjective, that it should fit as closely as possible one’s psychological approach to the market, one’s needs and objectives, and above all one’s available capital. The more hectic and frequent it becomes, the more operations done in the markets, the more the possibility of errors increases – which is inevitable,when one is exposed to the so-called market “noise” – and therefore to loss.
As specified above, i-Algotrade bases its entire activity in the markets on five automated trading softwares, that have been calibrated to choose trades depending on the calculation of the probability of success of each individual strategy that they foresee.
Obviously, the lower the rate of success is, the more the risks increase and therefore the chances of the stop loss pop in.
Speaking of stop loss, a detailed parenthesis is a must. The biggest news introduced with the arrival of new softwares, compared to the discretionary trading carried out for 20 years, is the total absence of hedging in the strategy, i.e. no opening new hedging positions for risk coverage of those already held in the portfolio: for example, if you bought dax futures September at 12500, you can decide to open a short position on dax futures December in the event of breaking an important support level, with the aim of protecting the long position and calmly assess what to do next, so as to avoid applying a stop loss right away.
WITH THE ARRIVAL OF THE I-ALGOTRADE AUTOMATIC TRADING SOFTWARE, HOWEVER, THE STRATEGY REQUIRES STOP LOSS IF IT IS NECESSARY with the aim of reducing the operating costs in the context of margin trading and above all always keeping the highest possible amount of free liquidity!
The softwares begin to enter into transactions with the chance of success from 40-45% and more, and when the success rate increases up to 60-65%, our software is starting to be more and more aggressive both in terms of money risk management and in terms of position sizing.
In light of the premise on trading made above, what have we chosen to do with Algoselection services we have created?
We have therefore chosen to offer services of real-time trading signals, with all the key elements for executing a trade (including stop loss and eventual price targets) indicated in time, but selected only among those with the highest probability of success: SIGNALS ONLY FUTURES (especially on futures dax and nasdaq 100) from 60-65% upwards; CRYPTORAPTOR SIGNALS from 90-95% (without EVER having any position stuck for a long time or drawdown of any kind). The protection of one’s capital is a top priority.
The goal is very clear and easy to understand: to give only the signals selected by our software among those with the highest statistical reliability, in this way those who follow the service know with absolute tranquility that transaction will turn into gain with very high probability. We offer the maximum support, especially in the phases of greater uncertainty and risk, almost always characterized by congestion or lateral movements, which represent 60-70% of the time in the markets.
Being set this way, the number of signals offered by our services is definitely variable based on what happens in the markets. But the value of this choice in the long term is really enormous and you can really understand it with the passage of time.
Services that offer hundreds of signals a month, resulting 30-50-70% of stop losses eventually wears out anyone, apart from the brokers that instead earn exponentially. The more frenetic the market activity becomes, the more operating costs increase, and therefore the earnings of the brokers increase, who are happy to encourage this type of trading, and the more it exposes itself to market noises and the high frequency trading follies.
Algoselection aims to propose a model that can work for anyone, to achieve results in a constant and sustainable manner over time, whatever the markets do (and they only do three things: they go up, down or much of the time, lateral), reducing financial and psychological stress to the minimum, always giving a clear reading of what is happening without EVER being on the wrong side.
The idea is to offer a truly extraordinary and innovative services, which most of the users can benefit from.