In this month’s update…
- May 2025 Performance
- Understanding Probabilities
- Did You Know?
- Pricing & Discounts
- How to Learn More
Performance Review
Equity markets remained volatile in May but trended higher overall, driven in part by continuing developments in trade policy. The S&P 500 ended the month up 5.4%, with the bulk of the gains concentrated over the May 9 - May 12 weekend, when tariff-related news triggered a 3% surge. An additional 1% came from the overnight session following the April close, while the remainder of the month saw choppy action, contributing just ~1% more. That was enough for five of our seven iQ autotrading programs to post gains, led by Trader 50 with a +7.6% return. Meanwhile, Multi 100 pulled back 4.3% after a strong double-digit performance in April.
Although volatility remains elevated, intraday price action has begun to align more closely with historical norms. This is an encouraging development for our strategies, which tend to perform best in sustained, yet less turbulent, conditions than the extraordinary chaos that disrupted many of our programs, as well as investors and asset managers worldwide, in Q1.
* Returns based on live and simulated results since 2018, using suggested funding. Does not include license fees – which start at $3,900 - see pricing below. View full performance & disclaimers here. Source for S&P 500 Sharpe ratio is Morningstar based on past 5 years as of Dec 2024. Past performance may not be indicative of future results.
Understanding Probabilities
When investing, it's essential to remember that short-term results are noisy and unpredictable. However, as your investment time horizon extends, the influence of randomness diminishes, and your results tend to converge with long-term averages.
Think about the classic example of flipping a fair coin. If you flip it 10 times, you'll get a random mix of heads and tails that easily could be something like 7 heads and 3 tails. But if you flip it 1,000 times, the ratio will be very close to 500 heads and 500 tails as predicted by probability theory. This illustrates how mathematical averages tend to approach expected values as sample sizes grow.
This foundational principle is one we emphasize consistently to clients. It underpins two key ideas critical to long-term autotrading success:
Time in the program matters.
The longer you stay invested in an iQ autotrading program, the greater your likelihood of realizing and benefiting from its long-term statistical edge.Diversification accelerates consistency.
The more diversified the program, the faster you’re likely to see the “law of large numbers” work in your favor. This is due to two reasons: The diversified programs trade multiple strategies that tend to generate returns at different times and dampen the overall volatility of the program. In addition, the larger programs trade more actively, allowing their returns to migrate towards their long-term averages more quickly.
In short: probability favors patience, discipline, and thoughtful diversification.
Having traded our strategies for nearly two decades, I can say with confidence: this is the sweet spot every investor should aim for—being in the largest, most diversified autotrading programs (or combination of programs) you can afford and are comfortable with, both financially and emotionally. Of course, this should always be within the context of your broader portfolio goals and risk profile.
iQ Autotrading programs are licensed annually and prices start at $3,900. Request details and payment options here. Discounts are available for veterans of the military and law enforcement. Larger programs and volume discounts are available for family offices and investors seeking to invest with greater amounts. Email [email protected] for details.
Want To Learn More?
Check out Answers to Common Autotrading Questions here. If you would like to request a 1-1 call/meeting with Matt, email [email protected]. You can also schedule a Zoom call/meeting with me here.
Thought of the Month
"“When opportunity comes, it’s too late to prepare.”
– John Wooden
Scott Andrews
InvestiQuant.com
CEO & Co-Founder