We’ve been talking a lot about algorithms of late, mostly as to how they are used and relate to so called Quants, as covered in our recent whitepaper.
Algorithms (or Algos for short) are the tools quants develop to make the lives of traders easier. You can’t get very far in one without the other. Quantitative strategies are those employed in a scientific and mathematical way. Like this: when x happens, do y. Algorithms, usually expressed using computer code, define those instructions, essentially doing everything from taking the effort of making the trade off a trader’s plate to allowing for the testing of hundreds of years of data. Trading Algos cover a few steps, from the strategy creation, moving into the strategy generation (both order creation and size), then the actual trade execution, and finishing out with position management.
But we didn’t know the true origin of the word Algorithm, which according to this BBC video, comes from a Persian scholar named al-Khwarizimi who are around way back in AD780. Apparently, when they translated his works 300 years later and “Latinized” his name, it became the term ‘algoritmi’. They finish the piece in much the same way we start ours – mentioning that “algorithms are everywhere now, helping us get from A to B, driving internet searches, making recommendations of things for us to buy, watch, or share. And predicting how we vote, or who we fall in love with”.
Take a look:
A good refresher on the algorithm and its history, even if it doesn’t touch on the heavy link algorithms now have to AI and Fintech and Quants (for that, read here).
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.
Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.
Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.
Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.
RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.