VOLUMETRIC ALGORITHM WITH QUANTUM INFERENCE
Problem
The complexity of markets approached with a discretionary (and therefore not objective) approach leads to two main problems:
EMOTIVITY: Emotionality has always played a key role in all financial disasters. It only takes one emotional mismanagement to destroy the entire operation.
DATA OMISSION: A discretionary strategy is by its nature nonalgorithmic. As such, the operator cannot compute a significant amount of data, exponentially increasing the risk of overestimating or underestimating the few data processed. Moreover, a discretionary strategy is subjective; subjectivity forces emotional management.
Solution
The SKY RAY algorithm, with proprietary volumetric indicators and next-generation quantitative analysis, solves these and other problems through:
AUTOMATIC REPAIRS: The algorithm does not require human intervention during operation, or even during reparameterization of the operation. Emotionality is taken down.
PROCESSING MILLIONS OF DATA: The algorithm processes millions of data per second, ensuring statistical validity and assigning correct weight to each data item analyzed.
TECHNOLOGY - QUANTUM INFERENCE
Quantum inference is used to develop new algorithms and techniques for statistical inference.
This approach exploits the unique properties of quantum systems, such as superposition and entanglement, to perform calculations or analyze data in ways beyond the capabilities of classical methods.
Imagine that each asset in a market is like a ball inside a box that is bouncing and moving within it.
Quantum mechanics can help us understand which of these balls is going to move faster and more intensely than the others by considering the trend of each one and the factors that may influence it.
Method
Our method relies on a fundamental relationship that allows us to measure the probability of the market taking one direction rather than another.
Three formulas define this relationship:
R=E
R>E
R<E
R stands for RESULT
E stands for EFFORT
Our analysis methodology allows us to understand which of these 3 formulas best describes the market at any given time.
Once the relationship has been established, we can proceed with calculating the probabilities
All the methodologies that allow us to understand the relationship between effort and result are proprietary, as are the methods adopted to establish the probabilities deriving from the relationship above
Validation
Strategy 3
Year 2023
Total net profit
+16,9%
Max drawdown
-3,1%
Recovery factor
5,54
Dow Jones (Benchmark)
Year 2023
Total net profit
+5,8%
Max drawdown
-9,1%
Recovery factor
0,63
Metrics - Strategy 3
62% Winning percentage
0.93 Average profit / loss
0.5% Risk per operation
778 Number of operations
Risk of drawdown (10%) from peak to trough
The probability over the entire time series of arriving at a 10% drawdown
0.64%
Validation
Strategy 5
From may 23 to march 24
Total net profit
+21,5%
Max drawdown
-5,6%
Recovery factor
3,8
Dow Jones (Benchmark)
From may 23 to march 24
Total net profit
+14,5%
Max drawdown
-9,2%
Recovery factor
1,6
Metrics - Strategy 5
64% Winning percentage
0.77 Average profit / loss
0.5% Risk per operation
652 Number of operations
Risk of drawdown (10%) from peak to trough
The probability over the entire time series of arriving at a 10% drawdown
1,50%
Validation
Strategy 7
From may 23 to march 24
Total net profit
+8.9%
Max drawdown
-3.5%
Recovery factor
2,5
Dow Jones (Benchmark)
From may 23 to march 24
Total net profit
+14,5%
Max drawdown
-9,2%
Recovery factor
1,6
Metrics - Strategy 7
76% Winning percentage
0.47 Average profit / loss
0.5% Risk per operation
450 Number of operations
Risk of drawdown (10%) from peak to trough
The probability over the entire time series of arriving at a 10% drawdown
0.05%
Team
Lorenzo Vittucci
CO - FOUNDER,
TRADING STRATEGIST
7 YEARS OF EXPERIENCE IN THE FIELD OF FINANCIAL MARKETS AND AUTOMATION METOLOGIES FOR FINANCIAL MARKETS
Davide Picchi
CO - FOUNDER,
CEO E TRADER
7 YEARS OF EXPERIENCE IN THE METHODOLOGIES OF INVESTMENT AND IN FINANCIAL MARKETS
Fabio Mortari
CO - FOUNDER, CTO,
INDICATOR ARCHITECT
30 YEARS OF EXPERIENCE IN DESKTOP AND WEB SOFTWARE DEVELOPMENT
