Frequently Asked Questions
How exactly does this work?
We offer fully automated & algorithmic trading systems that can be auto-traded by one of our NFA-registered brokers. Absolutely no experience is needed, since these algorithms are 100% automated.
The way it works is relatively simple. The algorithms are already loaded on the broker’s trade servers, so there is no setup required on your part and no need for you to stare at a chart all day waiting for an email or text. The trades automatically occur on your account and you will get a push notification on your phone letting you know a trade was initiated (using the GAIN iBroker app), what our stop/limit is, and much more.
Its as simple as you discussing the algorithms with one of our representatives, reviewing pricing information, opening & funding your account with one of the brokers that support the algorithms. You could be up and running within 1-2 business days depending on how quickly you open/fund the account.
Give us a call today at 1.877.766.9181 and our algo specialist will be happy to answer any questions you might have and provide pricing options.
Can I stop at any time?
Yes. The algorithms are traded under a letter of direction, meaning you still have access to your funds. There is no holdout period, if you wish to stop, simply email the broker and let them know.
Once you are ready, you could email the broker and let them know. They would in turn reenable the algorithms in your account.
What kind of reviews do you have?
We encourage all of our potential customers to perform their own due diligence. We are registered with the BBB (A+ Rating) & are Rip-Off Report verified. Individuals from Rip-Off Report actually visited our lead developer at his home office – interviewing him in order for us to receive the final “Verified” status. In addition, we’ve been reviewed by a well-known blogger who reached out to our company some time ago without us knowing. This blogger is known for his very harsh criticism of trading system vendors. In the end, he gave us 4.7 out of 5 stars. Out of the 50+ reviews he’s done, only a small handful receive anything better than 1 star.
How does Algorithmic Trading in general, differ from other styles of trading?
We recommend you watch the following two-part video series, where our lead developer actually finds a strategy online (MACD Trading Strategy) – codes it up, and shows how effective it is. In the second video, he takes it a step further and adds a confirmation signal that is recommended by the third-party website – the Awesome Oscillator. How does this strategy perform? Our developer does his best to make it work – and the results might surprise you. Not only does he code up the strategy, show the performance reports, do his best to optimize the algorithm – but he also shows you the code and uses a finite state machine to create a sequence of trade events required to occur before placing the trade (first the MACD bullish cross, then the Awesome Oscillator bullish cross as confirmation).
This video series is very interesting – because it really demonstrates the power of Quant/Algorithmic Trading. Developing a valid trading system requires much more than providing one or two charts with a few suggestions. It requires the developer/vendor to clearly identify when to get in, when to get out, what stop to use, what limit order to use, what candle size to use (5 min, 10 min, 60 min, etc), what symbol (SPY, QQQ, ES, etc), to include commission/slippage and much more.
Here is Part 1 of 2 videos explaining how we are different.
How can I get started auto-trading?
Why should I buy your algorithimic trading system?
Understanding the risk of trading futures, we prefer to not use any hard sale tactics. Our approach is to simply present the data, with the appropriate risk disclosures, and let you make your own decisions. Our representatives are not licensed or registered investment advisors, or CTAs, so we cannot give you advice about your specific situation, but we are happy to provide you with information regarding our various portfolios and trading strategies. We encourage you to review the data, share with an NFA registered CTA (Commodity Trading Adviser) if needed, and let us know what questions you have so that we can address them.
What broker do you use?
Can I trade my Roth IRA/IRA on your algorithms?
Do you develop your own algorithms? What is the background of your lead system developer?
Yes, we have developed all of our algorithms. Our lead developer has a Bachelor of Science in Electrical Engineering. He has worked for Fortune 500 companies as a programmer/logic design engineer including Hewlett-Packard, Intel, and Qualcomm.
Logic/ASIC design engineers are all too familiar with finite state machines and how to implement complex parallel processing logic. In our opinion, these concepts translate well into the Quant field of programming algorithmic trading systems, since the markets can be thought of as one huge state machine with trades being initiated based on various sequences of events. Logic design engineers are also familiar with debugging logic and attempting to find holes in the code they create. This critical way of looking at a design also translates well into Quant trading. Writing a trading algorithm in many ways is the easy part. Doing your best to ensure the algorithm is not over-optimized and that it will trade well post-optimization is the hard part. A critical/pessimistic approach to designing an algorithmic trading strategy is very helpful in producing a quality product that not only looks good back-tested but also walk-forward tested and finally in live trades.
What exactly do your algorithms trade?
We trade the Futures market, both long and short on the Emini S&P Futures. We also will place options trades on the ES, depending on the package you are trading. Noble/Paladin will place same day-expiring options, while Geronimo will hold the spreads for 1-2 days. The futures trades are mostly day-trades, however with Paladin it is possible that we could hold overnight.
How do the different algorithms within a package work together?
Our trading systems, trade multiple uncorrelated algorithms concurrently. Understanding that no one can predict the market direction with 100% certainty, we instead layer in multiple algorithms into a single portfolio with the intent of having 1-2 algorithms that do well when the market is trading higher, 1-2 that do well when the market is going lower and 1-2 trading algorithms that are expected to do well during sideways moving market conditions. Combined, we attempt to be NET positive 1-2 algorithms for each market condition (up moving, sideways moving, and down moving).
This doesn’t guarantee that every month we have gains, however in our opinion it is a great way to implement a purely technical trading system. Many developers attempt to create one algorithm that works in all market conditions, a very difficult if not impossible task in our opinion.
Have you ever designed an algorithm that lost money?
Yes. Unfortunately, since the company was formed in 2014, we have had individual packages that didn’t work out the way we expected and people lost money trading them.
If there are multiple algorithms trading together, is there a way to tell which one placed which trade?
Yes. There is a smartphone app that will alert you anytime a new trade is placed. You will also receive daily and monthly statements from the NFA Registered clearing firm, where your money is actually located. At the end of each month, once we post our results, you are able to compare your results with what we posted. Since the algorithms are traded in block accounts, we all see similar fills and there should not ever be any drastic differences between what we post and what your actual returns are.
Do you have a short algo?
Yes, we have a day trade short algorithm that is traded in all of our trading systems (Geronimo, Noble & Paladin).
How much does your system cost?
How much is needed to trade the algos?
Each package has a different “per unit” trade size which is also the minimum dollar amount required to get started. Each unit represents a block of trades placed across the different algorithms contained in that package. The Paladin Trading System requires a starting account size of $60,000 while the Noble trading system requires $40,000 and Geronimo can trade with as little as $10,000 ($20,000 recommended).
What happens if my account goes below the per Unit Trade size?
The per-unit trade sizes for the trading systems we offer are built such that the account can incur some losses without an individual needing to deposit more capital. In fact, the account minimum per unit trade size is designed for the account to be able to withstand the largest back-tested draw-down.
Of course, there are no guarantees in trading. It is possible that you could see losses that would require you to rebalance your portfolio or possibly add more funds. These algorithms should only be traded with “risk capital”.
Is support for your system available?
Yes. Between the broker and representatives at AlgorithmicTrading.net, there is plenty of support available to you.
Do you offer managed account services?
AlgorithimicTrading.net and its representatives/principles are not Commodity Trading Advisers and do NOT offer managed or partially-managed account services. As a third-party trading system development firm, we do not directly control client accounts but offer the algorithms for auto-execution under a Letter of Direction. Our customers are able to override trades, modify allocation between the different trading strategies & shut off the strategies should they choose to.
Should I ‘bet the farm’ with your algorithms?
Absolutely not. Algorithmic trading in the Emini Futures market on a relatively short-term basis should be considered a risky investment. AlgorithmicTrading.net and its representatives are not registered CTAs (Commodity Trading Advisor) and can not provide advice unique to your situation. Consult a professional to discuss your specific investment objectives and to determine if our algorithmic trading systems can provide a role in working towards those goals.
Please do not trade our algorithms if you do not have adequate risk capital to allocate towards them.
Do you ever re-optimize the algorithms?
Yes, as needed. This is included as part of the maintenance of the algorithms. If we find an improvement to the existing algorithms, we will provide that to our auto-execution brokers and do our best to notify all existing customers of the change. This tends to occur on a yearly basis, with new ideas being rolled out in the first quarter of the new year.
Do you guarantee I will make money every month?
No. The average gain per month is an average gain that the algorithms have made in a simulated account going back to the period indicated. Some months they made more than what is posted, other months they made less or posted losses for the month. This is an average gain per month using the “per unit” trade size.
Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will, or is likely to, achieve profits or losses similar to these being shown.
I don't have time to look at any charts, I’m too busy.
Our system is 100% automated. There in no installation or action needed by you if you utilize one of our auto-execution brokers. Once you are set up, your auto-execution broker will trade the algorithms on your account, with best efforts. You will receive a daily statement. There is also a smart-phone app that will alert you in real-time when a trade is placed on your account.
Do you have to be registered as a CTA in order to sell your algorithms?
No, pursuant to CFTC Rule 4.14(a)(9)(ii) we are not required to register under the Act as a commodity trading advisor. The algorithms are auto-executed for our clients under a Letter of Direction.
A person is exempt from registration as a CTA if “[i]t does not engage in . . . [p]roviding commodity trading advice base on, or tailored to, the commodity interest or cash market positions or other circumstances or characteristics of particular clients.”
What is your refund policy?
We encourage our customers to take a long-term perspective when using our algorithms and therefore do not provide refunds. Our contract states all sales are final. Trading is not easy, even with a high-quality, automated trading system like ours. It is best to not focus on the day-to-day ticks of the market or our performance. Instead look at it on a monthly or quarterly basis. Measure your results compared to the performance of the S&P 500 and enjoy the ride!
I have more questions, can I speak with someone?
Yes, our representatives are available to answer any questions you might have and walk you through all the data we have. You can reach us via phone if you prefer to speak to someone at 1.877.766.9181.
AlgorithmicTrading.net and its representatives are not licensed investment advisers, or CTAs. Consult a professional to discuss your specific situation with them.
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