Frequently Asked Questions
Does Algorithmic Futures Manage Capital?
Algorithmic Futures is a third-party trading system developer that licenses trading algorithms to allow customers to trade with 100% automated systems. Algorithmic Futures does not manage capital or provide investment advice, and as such, is not registered with the NFA as a Commodity Trading Advisor. We operate under an agreement known as a "letter of direction" to allow trading of our algorithms in your account.
How do the HFT Alpha and Diversified Algo Systems Differ?
The Diversified Algo system trades 12 trading systems, diversified between high frequency strategies and mid-frequency strategies. As a result of the increased diversification, the program’s backtest has a lower standard deviation of monthly returns and lower monthly maximum drawdown. The HFT Alpha system trades 10 trading systems and focuses on high frequency trading strategies. Although the program is diversified between 10 different strategies, the backtest has higher volatility of monthly returns and monthly maximum drawdown, but also with higher annualized returns. The HFT Alpha strategies are able to be trade with a smaller recommended account size of $25,000 compared to the Diversified Algo, which has a recommended account size of $50,000.
What are the Minimum Account Sizes for the Systems?
There are two recommended account sizes: 1) $25,000 recommended ($20,000 minumum) for the HFT Alpha program; 2) $50,000 recommended ($40,000 minumum) for the Diversified Algo program. The recommended account sizes are established based on the estimated required margin and expected maximum drawdown of each of the programs. However, there is always the risk of experiencing a margin call and loss of capital and the customer must determine how much capital to keep in their account based on their risk profile.
What is the Cost and What Payment Methods are Accepted?
What Asset Classes and Contracts do the Systems Trade?
How are Strategies Developed and Backtested?
How do I Open an Account to Start Trading?
What Brokers Can I Use to Trade the Systems?
Can I Open an IRA Account?
Yes, you can open an IRA account for auto-trading our systems. You will need to use an IRA administrator, such as Midland Trust Company, which administers self-directed IRAs.