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
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.