Such contracts are much cheaper in processing than shares and can be used equally for rising and falling prices. The inherent leverage in the Futures is part of the risk algorithm again and is taken into account during the trading decisions. What is the procedure in the trading concerning the implementation of this strategy? Martin Rothe: The accounts of investors be checked once a day with the strategy. To enter the respective closing prices in the computer as only information about the markets. The program analyzes each market in terms of trend strength and volatility and then calculates the new positions, taking into account the liquidity and risk parameters for each account. These are then transferred on a trading platform of the brokers, where they then in a timely manner for the new trading session automatically run. The time window for this action lies between 10: 00 and 8: 00 the next day, so before the stock market opening. During the day gradually be handled the orders, regardless of current market events.

The focus here is the consequence of doing without ifs and buts. Any doubts, hopes, fears, and Selbstuberschatzungen be switched off by the automatic. How long is the average holding period of a received position and how much is the maximum accepted loss per position? Martin Rothe: The holding period can vary greatly, at least a day until about 5 months ago. The cut is in three weeks. In addition, that positions be adapted again, so depending on the market behavior reduced or increased. Per item, are possible up to 5% loss so market and not per futures contract. This is rarely achieved, but occurs. In what markets does this strategy apply? And how do you go about selecting the markets for the AlphAlgo portfolio before? Martin Rothe: The strategy can be applied generally in all markets, because the underlying logic must process to changing market patterns.