Fully automated based on statistical analysis methods optimized with artificial intelligence
Genova FX ™ Trading System
The model in our proprietary trading platform Genova FX ™ is based on statistical analysis methods optimized with artificial intelligence that mimics logical thinking in the human brain. This results in an organization and trading strategies that differ significantly from traditional active trading funds.
The trading is based on quantitative analysis where possible trading opportunities are derived from historical statistical patterns. The model is fully developed, but research and development of analysis and trading methodology continues to ensure the future in a constantly evolving market. All such research and development takes place in Sweden. The goal is to deliver the highest possible absolute return to the lowest possible risk regardless of market trends.
The strategies are based on expected price movements and result in buy or sell execution and associated take-profit and stop-loss orders. The system often has between 20 and 40 open positions that vary in life from seconds to hours. Gap risk is also minimized as all positions are closed ahead of the weekend.
Within Genova's trading system, there is an advanced proprietary portfolio optimization tool that selects the size of positions based on different factors (for example: expected returns). One factor is the portfolio's total return and the size of new positions is reduced if the fund has had a negative trend. This safety can be seen as stepping on the brake during difficult times. The system operates with a risk limit based on 90 days of history during which the maximum allowable loss is 6%.
With the aim of optimizing management for professional investors, in April 2015, an adjustment of our risk limit was made from 15% to today's 6%. The new level of lower risk was calculated as the optimal use of volatility within our return target of 8% to 12%. Our risk adjusted performance has since more than doubled.