In markets, that are now more and more controlled and enlivened by algorithms and artificial intelligence and less by human beings – with a trend of gradual growth since 2007-2008 and exponential in recent years, it was practically an obligatory choice for us to go in the same direction starting from 2015-2016.
To follow the trend and to be profitable in the markets in a constant manner, it is necessary to never be against their impulsive movements. Over 60-70% of the liquidity of the markets is moved by machines, which tend to amplify and to bring the directional impulses to extreme. The only way to be able to not be crushed psychologically and financially by this reality is precisely to rely on a “cold and detached” automated trading software.
The work started between the end of 2015 and the beginning of 2016, and was mainly based on analyzing the biggest differences in the dynamics of the markets in the past, when everything was driven by human beings, especially in the short-medium term – the one that really matters in trading. Those least affected by the arrival of algorithms and artificial intelligence remain the long-term dynamics, definitely more important for an investor.
The number one priority that guided our choices was to never be against the market: it may seem trivial as an affirmation, but we assure you that it is not at all! We developed five automated trading softwares: I-ALGOTRADE, CRYPTORAPTOR, FOREX MACHINE, MID SMALL CAP STRONG MACHINE and MID SMALL CAP CRYPTORAPTOR, also in light of the events seen recently in the markets (for example, sovereign debt crisis in European markets; Brexit and election of Trump; movements in the last quarter of 2018, etc etc).
What could be more rewarding than opening a position on any financial instrument and feeling always on the right side of the market?
Our first software I-ALGOTRADE trades large cap stocks of ITALY / GERMANY / USA and all the main futures of international indices. It officially started its activity on 1st December 2017, after a 6 months long test phase. And since then, not only has it achieved results that have never been seen in almost 20 years of discretionary trading, but above all it has offered us a tranquility and a serenity that we did not even think was possible to have in trading in the financial markets.
IT IS TRUE THAT THE RESULT IS WHAT MATTERS AT THE END, BUT WHAT MAKES THE DIFFERENCE IS HOW IT WAS OBTAINED!
2018 was not an easy year: it started immediately with a first violent jolt in February, with a consequent explosion of volatility – after quiet years – then it had a really thrilling last quarter, with markets in strong descent, followed by a first quarter of 2019 with very strong bullish impulses almost everywhere in the markets.
The highly impulsive and extremely directional movements, amplified to infinity, are probably the most evident peculiarity of these markets guided by algorithms and artificial intelligence: if anyone has doubts about it, just look at a chart like Azimut to realize this even intuitively.
The stock’s price went down from 14-14,5 to 9,3-10 euros in just over 3 months at the end of 2018. Then, it climbed from €9,30 till €15,9 in early April without a slightest correction and without seeing any resistance. And there were important resistance levels on its way from 12-12.5 to 15.9 euros. What you see above is one of the most emblematic examples of what these machine guided markets are!
So, what our softwares do is mainly following the directional impulses of the markets, trying to put themselves in the wake of what the algorithms do, elaborating the dynamic control box charts, based on the historical volatility of each single instrument treated.
Our main goal is to NEVER be against the market and to optimize the performance, exploiting the alignments of all dynamic control box charts in the same direction, with take profit that can be variable and continuously modified, but with STOP LOSS always rigidly set.
