METHODOLOGY

How do actually work
the quantum systems?

Our aim is to exploit opportunities in equities and avoid risks.

That is why our Traderama principle is to only take a position when there is a real opportunity. Our algorithms search and find these opportunities.

Avoid risks:
We avoid risks by:

  • Diversification and constant mixing of portfolios
  • Active buying and selling of positions
  • Consistent stop and risk management
  • Do not enter into a trade if the probability of doing so is not high enough.

exploit opportunities
We seize opportunities

  • Broad universe: Broad analysis of the global equity and index universe
  • Stock and signal selection: Only the maximum 10-15% shares are added to the portfolio.
  • Buy low - sell high: Our quant systems analyze historical price trends, use them to calculate probabilities for trend reversal patterns, and calculate optimal buy points and sell points for stocks ("BUY THE VALLEY STRATEGIES").

This leads to us always buying "slices" out of the market. We do not hold many different positions in a portfolio over months and years. This allows us to avoid major crash phases.

Making money in the market one slice at a time - that's our goal.

The Traderama Quant systems use stochastics and artificial intelligence to calculate buy and sell times and prices

QUANTS CALCULATE PROBABILITIES

Traderama has developed well over 1000 algorithms and from these developments we have combined the best systems and logics. The focus of our systems follows a trend reversal logic - so-called "BUY LOW and SELL HIGH" strategies.

Now how does the computer know when a stock has reached a low point and when a high point?

By analyzing over 10,000 data points of a stock from the past, it is possible to determine patterns, wave movements, amplitudes and frequency of a stock price. Stock prices oscillate with certain patterns sometimes stronger sometimes weaker. The quant systems analyze these oscillations and calculate a kind of probability whether a stock will rise tomorrow versus the probability that it will fall. Example: APPLE long/short = 67% / 33%.

With a probability of 50% / 50% probably no one would invest in a stock. It can go well but also not.

The Traderama Quant systems constantly search for these ratios and, depending on the algorithm, enter a stock at approx. 70% / 30%.

Making optimal timing possible with probabilities

Every quant system looks for the optimal exit after entering a position. There are usually three scenarios of what the exit could look like.

  1.  The price turns right at the buy point and runs into the target over several days and makes a V recovery. This is the reversal that the quants want to trade.
  2. The price hardly moves up or down after the entry - "the position virtually starves in the portfolio". Should this happen, the positions are sold after a certain time.
  3. The position does not run in the desired direction and falls below the stop level. Then the position must be sold.

The aim is to ensure that a significantly higher percentage enters the target than is lost through stop or time exits. The systems achieve this by calculating an optimal buy price in advance of intensive pattern analyses.