JTI Ltd. evaluates a wide-range of existing financial tools in the capital market and markets them to private investors. The technological development momentum we witnessed in recent years did not bypass the capital market. Capital market activity through algorithm-based computer trading rapidly transformed a field previously familiar to only a small exclusive group and now open to all.Algorithmic trading is trading in the capital market based on computer programs. The algorithm creates and places trades, among them buy and sell orders. A trading algorithm is based on numerous parameters and its orders are executed without human intervention or additional human discretion. It is important to emphasize – the computerized, algorithmic, trading field – provides a significant advantage over traditional investment policies operating in the capital market. It can function phenomenally and generate sustained positive profit expectancy, but requires in-depth examination by the potential investor.“A long route that is short and a short route that is long.”Writing algorithmic code that will result in successful trading without human intervention is a complex task that requires the ability to both think and execute. Many programmers and companies in the market offer their products to all investors. But what do we know about the quality of their algorithm and their success record?The large quantities of information found online often create the false impression that we have the tools to become savvy investors. But the truth is that many times we are exposed to inaccurate information, driven by interests of which we are not always aware.Only few products on the market are indeed successful in yielding consistent returns.The main problem is found in the level and quantity of the computer code, and its ability to address changing market conditions: how does the algorithm deal with new data? How does this impact the trades it generates? In what assets does the algorithm trade? And mainly – what is the algorithm’s ability to deal with extreme market conditions?An in-depth and data-rich algorithm that provides a broad and comprehensive picture is in fact the long but paved route to success. On the other hand, simple trading strategies, most of them based on limited technical analysis and superficial reading of market conditions, are the short route but full of obstacles and uncertainty.This is exactly where JTI Ltd. comes into play for its clients.Our goal is to examine and appraise the algorithms of various companies and programmers operating in the field, so we can advise our clients to use only those algorithms that gained our trust and met our defined quality criteria.Understanding the code that executes the trading, and examining its trading data is a necessary milestone for successful investments. JTI Ltd. evaluates the quality of a trade algorithm by examining how it contends with varied and changing market conditions. The way these systems deal with the challenges we give them gives us a clearer picture of the trading strategies, thought processes and risk management strategies underlying the algorithm’s development. We also analyze real-time data of active subscriber accounts over time and under different market conditions.The “ten commandments” of JTI Ltd. – our expectations from the algorithm development process: Create a vision – of the product and the software company, in addition to characterization, and defining goals and the idea underlying the algorithm.
Develop a well-formulated concept to realize the idea. Plan the details – accurate and detailed product planning. Build a prototype. Enter data that simulate extreme market conditions to assess how the system will deal with similar conditions in the future based on risk management. Stop activity and gather all those involved in the process to draw conclusions and learn lessons.
Make improvements, including comprehensive tests.
Run on demo accounts and draw conclusions.
Run with small amounts of money and draw conclusions.
Run with large quantity of money and draw conclusions.
To ensure that all these stages are conducted in all software companies, our appraisal and analysis process is complex, long and calculated, in the aim of identifying the best and most skilled software companies whose products have operated satisfactorily for several years. Several software companies have fully passed JTI’s rigorous appraisal process to date, and our clients are already enjoying and reaping the fruits of our efforts.We will not work with companies that did not pass our stringent process and we will not recommend them.So how can you decide which software company to work with from among those we recommend?This only depends on the investment amount.Each of the software companies we work with has an R&D department with programmers, statisticians, physicists, mathematicians and risk management specialists. What’s more, all systems, without exception, undergo optimization on a daily basis and upgrade versions once a quarter.The software companies we work with do not deal in high frequency trading, which entails high risk. They focus on low frequency trading that offers a range of tracks with various risk levels, based on technical analysis, Fibonacci levels and Martingale and Anti-Martingale trading methods, involving accurate formulas, execution speed and correlations, that combine updated fundamental data transmitted directly to the systems.Although these are algorithmic based systems, analysts continuously monitor all finished products, and can intervene immediately if the situation calls for such action, for example to finalize transactions.JTI Ltd. made, makes and will make extensive efforts with its exclusive research tools, its knowledge and human capital, in order to provide an updated and quality picture for investors, so they do not get lost in the vast amounts of existing data in the technological world of capital markets. The Company’s efforts are directed at identifying the best and most suitable software packages for our clients, although this does not guarantee protection from malfunctions, losses and other such problems.Algorithmic trade is characterized by fluctuations and possible breakdowns, freezes and other malfunctions characterizing communication and computer systems. JTI cannot guarantee and/or ensure any success and/or return. The service JTI Ltd. offers is an appraisal service that is not immune to mistakes and/or malfunctions.