FAQ

FREQUENTLY ASKED QUESTIONS

  • Returns independent of Stock Market Performance
  • Reduction of risk via portfolio diversification
  • Have performed well historically during market crises (Oct. 1987, Asian crisis 1998, 9/11 tragedy, current credit crisis 2007-2008)
  • Low correlation to traditional investments such as stocks, real-estate, and bonds

A contractual agreement to buy or sell a particular commodity or financial instrument at a predetermined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

The property of statistical procedures that are insensitive to small departures from the assumptions on which they depend, such as the assumption that certain distributions are normal.

The adding of too many variables to a predictive system and making parameters of the system too sensitive for changes in settings. A systems with these characteristics would probably return a high profit over historical data, but fails at performing well in the future. The main assumption behind developing trading systems is that history will repeat itself, but only in a general sense. The systems of the eminiWorld.com are characterized by their robustness: the number of variables within one systems is minimized and parameter settings are not vulnerable to minor changes. This way thew dangers of overfitting are dealt with.
An assessment of a trading strategy on prior time periods. Instead of applying a strategy for the time period forward, which could take years, a trader can do a simulation of the trading strategy on relevant past data in order to gauge its effectiveness. As our systems at eminiWorld.com are fully automated, a backtest can be regarded as an independent proxy for future results
At eminiWorld.com we understand the extreme importance of having clean, accurate data on which to base your trading decisions. We have chosen TradeStation’s data as it is among the cleanest in the industry, allowing you to make your trading decisions with confidence. Visit TradeStation website for more details.¬†
We constantly monitor market for every instrument with a focus to know its behavior. It is very important to have a clear picture of liquidity, execution costs, trading depth and exchange structure. All this information is essential to ensure adequate algorithmic model development environment. For more on this topic please check TREC case study.
To avoid curve fitting:

  • We apply optimization algorithms to search for more promising areas using 60%-70% in sample reliable¬†historical market data. No less then 30% out of sample market data is used in system development process.
  • After the optimization process we leave most promising parameters sets for so called “incubation period”. It takes several months of live simulation to prove system is a candidate for live trading.
Primarily so that the real problem of interest is solved. The approach in most other trading system optimization software is to change the problem so that it fits the optimizer.

A random algorithm, such as a genetic algorithm, is essential in order to generate random systems.

Yes. The genetic algorithm is horribly slow. But that is one of the reasons why our algorithmic systems are robust and lasting in comparison to others.

CONTACT US

Contact our sales department by leaving us a message or call today at +370-698-80738 for more information on our trend following model TREC.