InvestiQuant - What's New , Education Series

How iQ Bitcoin 40 Made Money While Bitcoin Fell

Thu, 01 Oct 2026 13:35:47 -0400

Over the past 12 months, Bitcoin lost 34% of its value. At its worst point, it was down 53% from its peak. Anyone holding it rode the entire decline.

During the same period, iQ Bitcoin 40 earned 51% in live automated trading profits. The program didn't predict the drop. It didn't need to. Here's why:

1. It Trades Both Directions
Buy-and-hold only makes money when the price goes up. iQ Bitcoin 40 trade a basket of trend-following and momentum strategies that go long or short Micro Bitcoin futures (MBT). When Bitcoin trends lower, the short strategies can profit. When it rallies, the long strategies can. Bitcoin's big swings, in either direction, are the opportunity.

2. It Doesn't Sit in the Market
The average holding period is about two days. Instead of absorbing a months-long decline, the program takes short, defined-risk positions and then steps aside. Maximum risk on any position is about $1,200, or 3% of the suggested $40,000 funding level.

3. Its Returns Don't Follow Bitcoin
Because it trades both sides and holds briefly, Bitcoin 40 has low correlation with Bitcoin itself, with stocks (-0.08 to the S&P 500), and with other iQ programs. It adds a return stream that behaves differently from almost everything else you likely own.

What It Won't Do
Not every month is a winner. Trend strategies can struggle in choppy, sideways markets where no trend lasts long enough to capture. The program's largest historical month-to-month drawdown is 19.8%, and as with every strategy, its largest drawdown is likely still ahead. One strong year is not a promise of the next.

Who It's For
Bitcoin 40 can help:
Investors who want to benefit from Bitcoin's volatility without betting on its direction
Crypto holders looking for something that has proven it can generate gains when Bitcoin declines
Equity-heavy investors looking for diversification from a genuinely different source of return

Suggested funding is $40,000 (minimum $30,000), and intro license pricing is $3,900 per year. Like all iQ autotrading programs, it trades futures, so its gains are tax-advantaged due to IRS Section 1256 tax treatment.

Want to see how it would fit with what you already own? Wants to more detailed performance info? Check it out in the free iQ Portfolio Builder.

Have questions? View the product page.

Returns are based on the suggested funding level and are not compounded. License fees are not included. Future drawdowns may exceed those reflected in historical results. Commodity trading programs offer significant potential rewards, but also carry significant risk and are not suitable for all investors. Past performance of any trading system or methodology is not necessarily indicative of future results. You must be willing and able to accept these risks to participate in the futures markets.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED 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 PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

InvestiQuant is not a registered commodity trading advisor and does not provide personalized advice. Only consider futures trading and notional funding after careful consultation with a futures broker. Contact us if you would like to speak with one of our futures brokers.

The Capital Efficiency of Futures & Its Impact on Returns

Thu, 27 Aug 2026 16:21:06 -0400

Most investors are surprised to learn just how much market exposure a single futures contract provides relative to the capital required to hold it. A single E-mini S&P 500 futures contract currently controls approximately $375,000 of market exposure, yet requires less than $30,000 in a futures account (margin) to trade.

That means a futures trader can access broad market exposure using a fraction of the capital required to buy the equivalent value in stocks or ETFs outright. This capital efficiency also allows investors to keep more capital in reserve, diversify across more strategies and markets, and size their risk more thoughtfully.

Example: SPY (S&P 500 ETF) vs ES Futures (S&P 500 Futures)

Suppose you have $30,000 to invest. If you purchase $30,000 of SPY, a 1% increase in the S&P 500 would generate a gain of approximately $300.

Now consider using that same $30,000 to buy one E-mini S&P 500 (ES) futures contract. Since one ES contract controls roughly $375,000 of the S&P 500, a 1% increase in the index would produce a gain of approximately $3,750 - more than 10 times the SPY.

*example based upon the S&P 500 trading at 7500

The difference isn't that futures produce better returns, it's that they provide significantly more market exposure for the same amount of capital. This built-in leverage can amplify gains, but it can also amplify losses, which is why proper funding and risk management are so important when trading futures.

Capital efficiency is one of the core reasons systematic futures strategies, like InvestiQuant's autotrading programs, can pursue meaningful returns using relatively modest account sizes. It's also why micro futures contracts, which are one-tenth the size of a standard E-mini, have made systematic trading exposure accessible to a much wider range of investors than ever before.

That same leverage, however, is why funding levels matter so much in futures trading and why InvestiQuant publishes suggested funding levels for each program rather than simply listing a minimum. Our suggested funding levels are calibrated to cover the maximum daily margin the broker may require for each program, plus a meaningful buffer to withstand the normal ups and downs every trading program experiences. While some investors choose to fund with more or less than our recommendation, it's important to understand how that affects reported performance.

Let’s use an average year in the Multi 100 as an example of how this works. It has a suggested funding level of $100,000 and the average annual return is $44,200 per unit or 44.2% of the suggested funding level. If you were more aggressive in your funding and funded it with $80,000 it would still have the same return of $44,200 but the percent return would be 55.3%. If you were to be more conservative in your funding and start with $120,000 you would still have the same return of $44,200 but it would be a 36.8% return on your capital.

Funding at or above our suggested level gives a program more room to navigate the normal ups and downs that every investment experiences. Investors who choose to allocate more capital than recommended will see a lower percentage return, simply because the same dollar gains are spread across a larger account balance. Many investors prefer this approach because it aligns with a more conservative risk profile and lower percentage results also works on the downside, so when a drawdown happens the percent will be smaller there as well.

Some investors choose to allocate less than our suggested funding level. This will result in higher percentage returns when the strategy performs well, since the same dollar gains are measured against a smaller capital base. The tradeoff is that the account has less cushion during periods of normal market volatility and may require additional capital if market conditions become more challenging. For investors who actively monitor their accounts, this can be a reasonable approach. However, for most investors - especially those using retirement accounts or seeking a more hands-off experience - funding near or above our suggested levels offers a better balance between capital efficiency and long-term staying power.

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6 Benefits Of Cloud-Based Automated Trading Systems

Sun, 28 Jun 2026 07:55:00 -0400

Are you a trader or an active, self-directed investor who has tried different strategies with little success? Are you tired of the emotional rollercoaster that comes with making trading decisions? Or do you find it difficult to monitor the markets and execute trades effectively due to a busy schedule? If you answered yes to any of these questions, it may be time to consider a new approach. Cloud-based automated trading systems use sophisticated algorithms to analyze market data in real time, identify trading opportunities, and execute trades without human intervention. This can eliminate the emotional bias that often plagues manual trading and help you achieve more consistent results. Additionally, cloud-based automated trading programs can operate 24/7, 365 days a year, allowing you to take advantage of more trading opportunities if you have a busy schedule, without having to install or manage complicated software. This innovative trading approach can also leverage advances in technology, like AI, with statistical backing.

Let’s take a deeper dive into automated, cloud-based trading systems and how you can incorporate them into your investment approach.

What Are Cloud-Based Trading Systems?

Cloud-based trading systems are software applications that are hosted in the “cloud” (via an Internet server farm like those offered by AWS (Amazon) or Microsoft) and managed over the Internet by the system developer. They are not installed on an individual’s PC or computer. The trading systems use sophisticated algorithms to analyze market data and identify trading opportunities. When a market condition meets pre-determined rules and parameters, the algorithms send trade signals to the broker’s signal execution software and execute trades without human intervention.

Cloud-based, automated trading systems can offer several benefits. However, it is not without risks, and self-directed investors should carefully consider their goals, risk tolerance, and investment capital before using an automated trading program.

How Are Fully Automated Trading Systems Different From Other Investment Strategies?

Fully automated trading systems are different from other investment strategies in that they rely on pre-programmed rules and algorithms to execute trades, rather than relying on human decision-making or analysis. These rules can be adaptive based on recent market performance and changing conditions and even driven by advanced machine-learning and AI technology to find opportunities that would not be found otherwise. Automation also improves execution speed (minimizing missed opportunities) and removes emotion from the trading process, helping to improve consistency and trading results.

Traditional investment strategies, such as those based on fundamental or technical analysis, involve a trader making subjective decisions based on their analysis of market conditions, news events, and other factors. This can be influenced by cognitive biases (such as anchoring, loss aversion, and gamblers’ fallacy) and other emotions and ultimately lead to poor trading results. Fully automated trading programs can also operate 24/7, without the need for human intervention, which can allow for more opportunities and even take advantage of movements in multiple markets simultaneously.

Fully automated trading programs are complex to build and maintain, but when built properly by trading professionals, can offer many benefits to investors.

What Are The Benefits Of Cloud-based, Fully Automated Trading Systems?

Cloud-based, fully automated trading systems offer several benefits to new and experienced traders, and investors alike, including:

Consistency: One of the key benefits of using fully automated trading systems is consistency. Unlike human traders who can be influenced by emotions and cognitive biases, an automated trading program follows pre-programmed rules and parameters, leading to more disciplined and profitable trades.
Efficiency: Automated trading programs can save traders time by analyzing market data and executing trades much faster than a human trader. This can allow traders to take advantage of more trading opportunities, particularly in fast-moving markets. Moreover, automated trading programs can operate 24/7, meaning traders can benefit from trades that occur outside of regular trading hours.
Backtesting: Automated trading systems can be backtested and optimized on historical data, allowing traders to identify strategies with the best odds of success. This can lead to better trading results and help traders avoid costly mistakes that may have been made through trial and error.
Risk Management: Automated trading software can help traders manage risk by setting stop-loss orders and other risk-management parameters. This can help prevent large losses and preserve capital, particularly in volatile markets
Scalability: Automated trading programs can be scaled up to handle larger trading volumes, which can be difficult for human traders to manage. This can allow traders to take advantage of more trading opportunities without sacrificing performance.
Diversification: Automated trading solutions can allow traders to diversify their trading portfolios by using multiple strategies simultaneously. This can help to spread risk and potentially increase returns.

How Do I Get Started With a Cloud-Based Automated Trading System?

Getting started withInvestiQuant's fully automated trading programs is a great way to take advantage of volatility and put advanced technology to work for you. iQ Autotrading offers traders a range of robust, statistically-based, systematic trading strategies that are designed to generate attractive returns, regardless of the direction of the stock market. The best part is that these turnkey solutions can be enabled to autotrade your account at an approved execution broker in a matter of days, without having to install or maintain any software whatsoever.

By utilizing a wide range of strategy inputs, including alternative data, technical patterns, volatility, market profile, seasonal events, and multiple advanced machine-learning techniques,iQ Autotrading offers a diversified approach to algorithmic trading. InvestiQuant's autotrading is a powerful, hands-free solution for traders and investors of all types, offering strong, verified returns, potential for outsized growth, emotion-free, statistically-based trading, low correlation with stock trading strategies, a turnkey, hands-free solution, and aligned interests.

Ready to see how cloud-based, automated trading can transform your investment portfolio? Request info to learn about the performance of InvestiQuant’s automated trading programs and how your account could be enabled for automated trading in a matter of days.

Keep it Real When Autotrading

Sun, 01 Mar 2026 08:05:00 -0500

Autotrading with iQ can be a powerful tool for portfolio growth and diversification, but success requires the proper mindset and expectations.

Here are 6 fundamental principles every investor must understand and accept:

1. Autotrading Is Not an ATM
iQ Autotrading is a powerful portfolio diversification tool, not a source of quick gains for immediate financial needs. A disciplined, long-term approach is key to maximizing its benefits.

2. Drawdowns Are Normal - And Necessary
Account equity declines (drawdowns) are unavoidable and can occur at any time. In fact, market growth and volatility ensure that every trading strategy’s largest drawdown is still ahead. Fortunately, they are also completely normal and part of long-term success and can represent tremendous opportunities for starting. Savvy investors embrace these realities and realize that every prior run-up (period of strong performance) was preceded by a drawdown.

3. Short-Term Results Are Random
As with all investments, short term results can and will vary wildly. Despite best efforts, iQ Autotrading may not deliver returns exactly when you want or need them.

4. Most Months Generate Modest Gains or Losses
iQ Autotrading programs often generate most of their gains within just 3-4 months each year. Waiting for the "perfect moment" to start could mean missing the best month of the year and staying invested at all times is crucial. (Caveat: investors must abide by their own risk tolerance.)

5. Risk Remains Constant, Even in a Drawdown
Unlike hedge funds, iQ Autotrading programs don’t deleverage during a drawdown. To maximize long-term expectancy, they maintain the same daily budget, which means the losses can add up quickly in a single month. BUT, it also means the recovery is as statistically probable as the drawdown itself. The hedge fund phenomenon that a 50% drawdown requires a 100% return to breakeven does not apply here!

6. Neither Stock Market Rallies nor Declines Guarantee Autotrading Gains
iQ Autotrading programs are designed to be lowly correlated to equities and do not track stock market performance. Historically, these strategies have often (though not always) performed best when traditional markets struggle - helping add meaningful diversification to a portfolio. Like any adaptive strategy, performance can vary, and periods of underperformance may occur as models adjust to changing market conditions.

How to Get Started

Six Ways to Know If An Autotrading Solution Might Be Worth Trusting With Your Capital

Thu, 22 Jan 2026 14:37:06 -0500

#6 -The firm does NOT rely on overseas brokerage firms (who may trade against you)

InvestiQuant (iQ) avoids risky overseas brokerages and only utilizes highly regulated brokers registered with U.S securities agencies.

#5 -The firm’s strategies were NOT developed by retail traders who have no professional experience creating and managing scalable investment solutions

iQ’s strategies were built by previously registered Series 3 traders who managed and traded tens of millions of dollars of investors’ capital as licensed professionals prior to launching InvestiQuant’s autotrading solutions.

#4 - Clients do NOT have to wonder if the autotrading firm actually trades the same strategies they promote

U.S registered brokers are available to verify that iQ only offers strategies to clients that iQ, its shareholders and employees trade and rely on with their own capital.

#3 -The firm does NOT utilize risky Martingale or related techniques

Unlike some trading “experts” and many AI and forex bots, iQ strategies don’t double-down on losing trades or use other risky techniques to generate gains — a key reason why clients have trusted InvestiQuant for over 16 years.

#2 -Client orders are NOT executed independently (“first come, first served”)

iQ clients’ orders are executed at the same time and price averaged by each broker for client fairness. They are NOT at the back of the line (behind the company’s executives and early clients who are front-running them) receiving different / worse prices and results.

#1 -The firm prioritizes results over revenue and does NOT sell ‘unlimited licenses’ or ‘lifetime access’ to clients

Because InvestiQuant and its team rely on the same strategies, they strictly manage client utilization by charging recurring license fees for the amount of trading volume utilized. (Why would anyone with a legitimate edge NOT do that?)

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Apex 65 - A New Multi-Market Program

Sun, 30 Nov 2025 07:55:00 -0500

Apex 65 executes up to one E-mini contract per day—selecting only those setups that exhibit high win probability or exceptional reward-to-risk potential, all while remaining within strict daily risk limits.

Designed with our lowest entry requirement for a multi-market strategy, Apex 65 trades exclusively intraday in the E-mini S&P 500 and NASDAQ futures markets.

Click Here to Get Started Now

Futures trading programs have large potential rewards, but also large potential risks and are not suitable for everyone. You must be willing to accept these risks in order to invest in the futures markets. The past performance of any trading system or methodology is not necessarily indicative of future results and may not account for license fees. You should expect larger drawdowns in the future than those shown in historical and hypothetical results.

Part 3: Common Questions About Autotrading

Fri, 24 Oct 2025 16:23:34 -0400

Part 3: Common Questions About Autotrading Accounts

Can I stop (or pause) the trading of my account, or withdraw funds, at any time?

Yes. If for any reason, you want to pause the execution of InvestiQuant’s strategies, or withdraw some, or all, of your funds, simply contact your broker. Please allow 24-48 hours. You do not need to contact InvestiQuant, though we would appreciate a courtesy email to info@investiquant.com. Note: client accounts can only be paused when not in a trade.

Does anyone at InvestiQuant have access to, or visibility of my account funds?

No. One of the many benefits of the iQ Autotrading model is that InvestiQuant’s exclusive role is to serve as your signal provider. This allows us to keep our focus solely on creating and improving our strategies and offloading the execution of the strategies to an expert team. Our sophisticated signal delivery technology routes our signals to the broker’s application which seamlessly converts the signals to orders for execution at the exchange on your behalf.

Can I use my existing account?

It depends. If you already have a futures account open at one of the leading FCMs (futures merchants) like StoneX, Phillips, Dorman, etc. or one of our specialized executing brokers (like The FOX Group or Edge Clear), then YES. If not, then you will need to open an account with one of them as our signals are integrated directly with them and their systems. Plus, their specialized staff provide the invaluable service of monitoring and overseeing the algorithmic execution of our strategies in client accounts (so that you don’t have to).

Can I trade in the same account as the one that executes iQ signals for me?

You cannot trade in the exact account used for autotrading. However, you can open a sub-account under the same name as your autotrading account. Maintaining separate accounts ensures clarity of trade results. You'll receive daily statements detailing the day's trades – entry and exit points, and their outcomes. A comprehensive monthly statement is also provided.

Can I manage the trades once the program has executed a trade?

No. Due to their auto-adaptive design and stop management, the vast majority of traders will underperform (likely by a lot) the statistically-based execution of our strategies. InvestiQuant's autotrading programs are autonomous by design, eliminating the need for user interference with stops and targets and avoiding the many negative consequences of human’s many cognitive biases.

Does InvestiQuant “front run” or trade against the signals executed in my account?

No! The InvestiQuant team members’ accounts rely on the very same signals and strategies as our clients. Further, our accounts are traded side-by-side with our clients. And, the clients at each broker receive the same result at the end of each trading day - win, lose or draw.

Begin Your Autotrading Journey with InvestiQuant

InvestiQuant has been providing institutional quality trading strategies based on statistical edges to self-directed investors since 2008. Our AI-driven automated solutions help clients protect and grow their wealth, hands-free, regardless of the direction of the stock market. Learn more about our autotrading programs, or contact us to get in touch with our team today.

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Answers to Your Common Autotrading Questions: Part 1

Sun, 28 Sep 2025 07:31:00 -0400

Navigating the world of autotrading can seem daunting, especially for those new to active, self-directed investing. With an array of choices to make and strategies to consider, it's crucial to be well-informed. At InvestiQuant, we're dedicated to providing transparency and education to not just our valued clients, but also those who are in the exploratory phase. Whether you're a passive investor or a seasoned trader, or just starting out, we are here to help.

Common Questions About Autotrading Programs

Is it best to start with the smallest autotrading program available?

Not necessarily. Lower-funded programs typically trade fewer strategies, which may mean less diversification and greater volatility. Larger programs generally trade more strategies and may offer smoother, stronger risk-adjusted returns." It also added the cautionary: "That said, it is still prudent not to commit your entire budget to your first program. A simple way to compare the risk-adjusted returns between programs is to use the Sharpe ratio—the higher, the better. This metric is viewable on iQ performance reports and via the iQ Portfolio Builder tool.

Another effective way to measure risk is to compare the size of the historical drawdowns relative to the program’s suggested funding levels—the smaller the percentage, the better. By examining these two metrics, you can find the program(s) that may be best suited for pursuing your financial goals.

Is it okay to license and combine multiple autotrading programs?

Yes. Our most satisfied clients are typically the most diversified. Often combining two smaller programs can create more diversification for your investment than selecting a single larger program. By blending programs that trade different markets and strategies it can be easier to generate the best returns relative to risk while remaining within one's budget and risk tolerance. To see the results of hypothetically combining different iQ autotrading programs and using different funding amounts, you can access our free iQ Portfolio Builder app and view iQ Autotrading Program performance here.

What markets are traded by InvestiQuant’s autotrading programs? Why futures?

iQ strategies trade the stock index (e.g. S&P 500 e-mini futures and NASDAQ 100 e-mini futures) and commodity futures (e.g. metals, energy, agriculture, currencies, etc. Futures are ideal trading instruments due to their high liquidity, ability to enter long and short in all account types (including IRAs), cost-effectiveness when two-way trading (long and short), tax advantages when short-term trading (consult your accountant regarding Section 1256 contract benefit), and ability to be funded with less capital - thereby freeing up your capital for other investments and uses.

Is futures trading risky?

All trading and investing carry inherent risk, regardless of the type or trading instrument. Futures are inherently leveraged, which can magnify both gains and losses relative to the capital invested. Risk can be managed through diversification across intraday and multi-day timeframes, as well as across multiple markets. This may help reduce reliance on any single market or trading approach while providing meaningful portfolio diversification. Every executed InvestiQuant trade also includes a predefined stop intended to limit losses when a trade does not perform as expected. Stops help manage risk, but they cannot eliminate it.

Begin Your Autotrading Journey with InvestiQuant

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How Do Algorithmic Autotrading Strategies Work?

Fri, 25 Jul 2025 14:37:15 -0400

I have explained what Autotrading is at a high level in a past article. Now, let’s take a peak underneath the hood of the iQ (InvestiQuant) Autotrading engine and learn how autotrading strategies work.

Data Capture
The first step in the algorithmic trading strategies process is historical data capture. Algorithmic autotrading strategies require large amounts of clean, robust market data for optimal evaluation and signal generation. Sophisticated software and 3rd party data feeds are utilized to capture and cleanse historical market and price data for a diverse array of contextual market inputs:
Market Events (e.g. FOMC Fed Announcement, Options Expiration, Futures Rollover, etc.),
Economic Reports (Employment, CPI, PPI, earnings, etc.),
Price Patterns (new market highs/lows, overbought/oversold levels, unfilled price gaps, etc.),
Volatility (VIX, ATR, etc.),
Calendar Considerations (day of week, day of month, month, quarter, etc.),
As the saying goes, “garbage in = garbage out” and InvestiQuant expends considerable resources to capture, cleanse, organize, store, update, and monitor nearly a thousand different data points (most of which update daily) that help its algorithms evaluate the real-time state of the market. When determining the optimal signals and risk parameters for a given trading day, context is king.

Strategy Tracking
But market data alone is not enough to generate a trading signal. Every signal is created by a well-constructed strategy with very strict trading parameters (long or short, target, stop) for a given trading instrument (futures contract, option, or share), market (S&P 500, AAPL, etc.) and environment (trend, volatility, etc.). Every strategy should be thoroughly researched, analyzed, tested, traded, and refined before entering production.

Once a strategy is trading live in production, both its historical and ongoing live trading results should be stored and tracked in databases for real-time evaluation each day. Maintaining a comprehensive database of strategies and their daily performance across all market environments is critical for enabling them to adapt to changing conditions, as well as their own performance. With the help of advanced financial machine learning techniques, the most sophisticated trading algorithms (like many of those utilized by InvestiQuant’s autotrading programs) will automatically deactivate until their performance improves, or a more conducive environment is present.

Note: One of the most common reasons algorithmic trading strategies fail is because they were over-optimized originally (typically by a novice developer), or their algorithmic rules were not adaptive. Meaning, the rules are too simple and rigid, and not engineered to evolve with the ever-changing markets. The adaptive nature of InvestiQuant’s strategies and machine learning techniques is what has allowed them to stand the test of time and perform across a wide range of market environments (e.g. raging bull markets, volatile bear markets, etc.)

Signal Identification
Algorithms come in many shapes and sizes and utilize a series of processes, calculations, and other problem-solving operations to achieve a desired outcome. Even tying your shoelaces is a form of an algorithm! Of course, trading algorithms are a bit more involved, to say the least.

The 3rd step of the algorithmic trading strategies process is algorithmic signal identification. The goal of this step is to identify which trading strategies’ requirements (market conditions, price patterns, volatility levels, events, calendar considerations, etc.) are met and should be considered for execution. In other words, for which strategies are market conditions favorable for trading today?

Risk Management and Signal Selection
Once all of the potential strategies for a given day have been identified, they are then segmented into the autotrading programs that each supports. (InvestiQuant offers different size autotrading programs powered by algorithmic trading strategies to accommodate the wide range of desired investment levels of traders and investors. The larger the program the more strategies it includes.)

Each iQ Autotrading program operates with a predetermined maximum daily risk budget (varies by program, typically 3-5%) and a suggested funding level ($30k - $1M). For example, the iQ Trader Program consists of about 15 different algorithmic strategies, and its max daily risk budget for a given day is $2.5k. If the trade criteria for four of its strategies are met and their collective required risk budget (i.e. the amount of risk needed to allow them to trade optimally) is $3k total, then the signal selection algo will only have enough risk budget to select three of the strategies’ signals for execution that day.

Signal Execution
After the filtering process of risk management and signal selection, the signals are then ready for electronic distribution. That day’s trading signals are electronically sent within milliseconds of selection by our signal server (co-located with the CME exchange in Chicago, Illinois) to our executing brokers’ order management software which processes and converts the signals into electronic orders for execution at the exchanges on behalf of InvestiQuant’s clients.

The brokers utilize sophisticated APS (average price sold) algorithms to ensure that all clients earn the same results (to the penny) that I get in my account for each signal executed.

Algorithmic Autotrading Strategies - Powered by IQ
Since 2008, InvestiQuant has armed traders and self-directed investors with institutional quality algorithmic trading strategies based on statistical edges. InvestiQuant’s AI-driven automated solutions help clients better protect and grow their wealth, hands-free—regardless of the direction of the broader stock market. Request autotrading information today to learn more!

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Investment Due Diligence: Autotrading Questions To Ask

Fri, 27 Jun 2025 16:23:24 -0400

Due diligence is critical when selecting an Autotrading solution. Why? Because these days just about anyone with a little trading knowledge and AI can create a seemingly profitable trading solution. But subscribing based on attractive results is simply not enough. It takes a well-funded, fully-committed team of highly skilled developers and veteran traders to build and support automated trading strategies that can generate real profits over the long term. By conducting autotrading due diligence, you can better understand the risks, make a more informed decision, and increase the likelihood of achieving your financial goals.

The purpose of this article is to streamline some of the more important questions with some straightforward answers. InvestiQuant is a trusted partner of our clients with AI-driven automated solutions to guide clients in the diversification and growth of their wealth. Our objective is to help you decide if autotrading is right for you and to arm you with the information needed to make the optimal investment allocation decision for your financial situation and risk tolerance. If you have any other questions not covered in this blog, just reach out to us – we are here to help.

Does the iQ Team Trade the Same Programs?

Yes! We risk our own capital and rely on the very same strategies and programs as those traded by our clients.

Is The Company Financially Stable?

Yes. InvestiQuant is a profitable company that has been serving clients since 2008 and is backed by a group of private investors. These shareholders (professional investors, friends and family, and some of our earliest clients) invested over $3 million to help scale and automate the company’s innovative machine learning technology and strategies. With their backing, a strong balance sheet, and highly scalable business model, clients can rest assured that iQ is a company they can count on.

Are The Principals Trustworthy, Qualified and Accessible?

InvestiQuant’s principals, Scott and David, are highly experienced traders and software development professionals. They met while attending the United States Military Academy (West Point) and were subsequently stationed at Fort Bragg, NC (Scott served with the 18th Aviation Brigade and David with the 7th Special Forces Group.) After leaving the Army, they earned Masters degrees and led the development and launch of Jaggaer (formerly known as SciQuest) - one of the first B2B software-as-a-service pioneers and a global leader in e-procurement with over 1,000 employees today. With Scott at the helm, they took this cloud-based software company public on the NASDAQ exchange.

Following Jaggaer, they applied their passion for data to the financial markets and built InvestiQuant. Along the way, they became professional traders with Series 3 Commodities and Futures licenses. To earn their licenses and manage money professionally, they had to pass the rigorous National Futures Association (NFA) and Commodities Future Trading Commission (CFTC) background checks and derivatives qualification exams. (Note: the company is now registration-exempt so their licenses have expired.) InvestiQuant’s professional subsidiary, Numeri Capital, received the prestigious HFM Quant Award in 2019 as Best Newcomer.

As CEO of InvestiQuant, Scott speaks with clients and prospects, and responds to emails on a daily basis.

Are The Published Performance Results Real? or Hypothetical?

Unlike many 3rd party developers, we don’t hide behind hypothetical results and disclaimers which can be incredibly misleading and dangerous. Every InvestiQuant program’s live net trading results are shared from inception, typically along with simulated (hypothetical) returns for a few years prior, so that a more complete picture of how a strategy would have performed in other market environments can be assessed.

Please know that relying solely on hypothetical results - without live trading confirmation - is risky as simulated results are often over-optimized and rarely account fully for real world execution slippage. If the program trades frequently, live trading variances of 50% or more are possible. When evaluating other signal developers, buyer beware!

How Can I Verify The Performance of Your Autotrading Programs?

InvestiQuant reports the live trading results from its accounts each month. Due to the broker’s “Average Price System” every client receives the same net results for each trade. As such, the simplest way to verify InvestiQuant’s published returns is to ask the broker representative to verify our published figures. (Note: results can vary slightly by broker.)

Do Your Employees Have Access To My Funds?

No. InvestiQuant serves as the 3rd party signal developer and focuses its efforts solely on developing, maintaining and improving advanced algorithmic trading strategies. No iQ employee ever has access or visibility to clients’ funds or trading accounts.

A professionally licensed and registered brokerage firm, with algorithmic trading expertise, supports clients by assisting them with opening and funding their account with another highly regulated entity: a Futures Commissions Merchant. The broker serves as the support representative and liaison between the client and the merchant. The broker also maintains trading desk personnel to oversee and ensure proper algorithmic trade execution of all InvestiQuant signals within each client account. The futures merchant serves as the custodian of the client funds and safeguards them in segregated accounts.

Is There “Key Man” Risk? What Steps Are in Place to Ensure Error-Free Execution?

Many algorithmic investment solutions are entirely dependent upon one or two individuals (typically founders) for their research, coding, and trade operations and most only have 2 or 3 employees. However, redundancy of personnel is crucial for autotrading companies.

What happens if the person who oversees signal generation is on vacation or out sick or leaves the company? What if the data feed breaks or is corrupted? Are there other employees who understands the ins and outs of the algorithmic code and, most importantly, is qualified and trained to make the appropriate decisions and take corrective action if needed?

The InvestiQuant team is a diverse, highly collaborative, cross-functional team consisting of traders, full time software engineers and data analysts. We have the financial wherewithal, personnel and processes in place that ensure critical operations within our company structure will continue in a streamlined manner, no matter the circumstances. Why? Because we risk our capital side-by-side with our clients in the same programs each trading day.

Are Your Trading Operations and Algorithms Backed-Up With 24/7/365 Power?

All critical InvestiQuant trading signal software and data are safely and securely stored, and backed-up, in cloud-based hosting centers located near the exchange using Amazon Web Services (AWS). Our development team maintains backup power supply in the event of any power outages that sometimes do occur in North Carolina. (Hurricanes are not uncommon.) And, we have systems in place to facilitate and assure that all our trade operations continue, despite inclement weather conditions and situations.

Have additional questions? Reach out to info@investiquant.com.

InvestiQuant takes great pride in helping clients invest smarter using institutional quality, automated hedge fund strategies based on advanced machine learning and statistical edges. Whether you are a self-directed investor or a trader, you can be assured that your hard earned capital is being treated with the same care and diligence as our own.