Recently we had the opportunity to sit down with the developers…
Optimized Trading LLC., is a system developer located in Charleston, West Virginia. The company uses its propriety program to select from a menu of systems to optimize performance for its swing-trading programs.
Robert Spears and Brian Miller are the managing partners.
Updated on June 2nd, 2017
The Multi-Model v3 can trade up to 3 contracts at a time.
The program uses a highly adaptive approach driven by our proprietary IMM. The IMM (Intelligent Model Management) Control Module deploys a combination of dynamic formulas to identify the most attractive and consistent strategic model relative to the current and projected market environment (bullish, bearish or consolidation). The individuals models employ a variety of analysis methods. These models and underlying strategic concepts are independently evaluated, correlated and validated prior to inclusion in the IMM. The Multi-Model with Intelligent Internal Analysis concept exhibits the extraordinary steps to reduce the many risks associated with Strategic and Systematic development and applications processes. Version 3 can execute up to three entries per position and each are independently evaluated and only occur a percentage of the time. Developer’s research has shown multi-entry concepts produce the most attractive risk adjusted returns. This program will trade appx 5-7 times per month with an average holding period of 1-5 trading days.
Robert, tell us about your background and how it led you to this point?
Robert Spears: I started with a major wirehouse in 1982 and spent my first two decades in the business on the equity side. The correction of 2001-2003 led to an exhaustive search of alternatives and a career change to the futures side of the business. Brian and I were introduced through a third party. After several meetings we decided to combine our synergies and form the company to offer investors creative and adaptive strategies for their portfolios.
Now Brian, it’s your turn to fill us in on you, and why you joined forces with Robert?
Brian Miller: I began trading and developing strategies during the crash of 2008 which was a great time to see the many variations of risks. That period of time truly highlighted how if one would shift the primary development focus from increasing returns to mitigating all or most risks, you could more quickly identify true strategic potential and its optimal risk/reward profile. This is something I took and continue as a foundation development to this day. Robert and I discovered early in our conversations we both shared the same vision. We share similar views of systematic structures & concepts and quickly realized our respective areas of expertise could accomplish more as a partnership than individually.
Describe the basic market philosophy behind your trading systems and the risk /reward guidelines?
Brian Miller: Our objective is to fuse strength of adaptability into every layer of conceptual development and always give our systems the ability to internally analyze and identify opportunity and risk. We focus on reducing the many types of risks including drawdown amounts and frequency, over fitting, change of market environment, strategic failure and several others with our proprietary analysis methods. These allow us to pursue our goal of consistency of results.
What are the “nuts & bolts” behind your “OPT Multi-Model” and how does it work?
Brian Miller: The OPT_ES_Multi-model products are multiple model & multiple entry systems designed to exploit all major market environments which can produce consistent absolute and non-correlated returns. The “Multi-model” systems are comprised of 30-40 independent models. Our proprietary IMM (Investment Management Module) analyzes each as if in real time to identify and activate the best model suited for current market conditions. They enter each position independently and can add up to two additional positions depending on the system. We have found the multiple entries increase our overall returns and lower our risk profile.
Are you working on anything new you can share with us?
Robert Spears: Yes, we are developing additional programs and should offer more in other equity indices very soon. We also plan to have portfolios available for investors seeking additional diversification within a single package. We think it is an exciting time to be in the markets.
***Definitions and Disclaimers
Maximum Draw Down The biggest deciline of equity over a specific period of time. Peak to valley is the difference between a high point of equity and the next lowest point of equity over a number of trades on the monthly basis.
How to use: The Maximum Draw Down is a tool for the portfolio selection process. It is used as a risk measure and allows individuals to get an indication about how an account might react to a trend of falling prices.
Sharpe Ratio Measures the return earned in excess of the risk-free rate on a portfolio to the portfolio’s total risk. The prior month’s 90 Day T-Bill Rate is used as risk-free rate.
How to use: The Sharpe Ratio is used to evaluate the quality rather than the quantity of the returns of a security or a portfolio of securities. The higher the value of the indicator, the better the quality of the returns on a risk/reward basis.
Sterling Ratio A risk-adjusted ratio given by dividing the returns on a security by the Maximum Draw Down (the biggest consecutive loss) for the same period.
How to use: The Sterling Ratio is used to evaluate the quality rather than the quantity of the returns on a security or a portfolio of securities. The higher the value of the indicator, the better the quality of the returns on a risk/reward basis.
“System Description” is based upon information obtained from specific system marketing documents, system developers and/or system vendors themselves. While the information is believed to be reliable, we cannot guarantee its completeness or accuracy.Actual Monthly Performance
The table and charts represent the monthly/quarterly/annual summation of actual trades based on system-specified contract(s) executed through Striker Securities, Inc. using the referenced trading system or system vendor for the stated time period. Commissions and monthly vendor fees are deducted from the tabulation. This table is presented for information purposes only and is not a solicitation for the referenced system or vendor. Striker Securities, Inc. as a matter of policy has no financial relationship with the referenced system or vendor or any other trading system or vendor. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The results indicated here may or may not be typical of the performance of this system and, ALTHOUGH WE BELIEVE THIS INFORMATION TO BE ACCURATE, ICON ALTERNATIVES LLC MAKES NO ENDORSEMENT OF THIS OR ANY SYSTEM NOR WARRANTS ITS PERFORMANCE. This is not the only trading system that Striker Securities, Inc. executes for its clients. Potential traders should carefully investigate, evaluate and compare trading systems before investing capital. Some or all trading systems may involve an inappropriate level of risk for potential traders. It is the nature of commodity trading that where there is the opportunity for profit, there is also the risk of loss. In opening an account with Icon Alternatives LLC, Customer acknowledges and agrees that he/she will rely solely upon the information that Icon Alternatives LLC provides to you. Thus, all prior third-party materials provided are superseded by the information and disclosures provided by Icon Alternatives LLC.Important Information About this Trading System Analysis
Statistics, tables, charts and other information on trading system monthly performance are based on actual trading unless otherwise specified. Actual dollar and percentage gains/losses experienced by investors would depend on many factors not accounted for in these statistics, including, but not limited to, starting account balances, market behavior, developer fees, incidence of split fills and other variations in order execution, and the duration and extent of individual investor participation in the specified system. Other expenses such as exchange fees, nfa fees, transaction fees, software or system costs are not accounted for herein, and will affect investors net results in actual trading. While the information and statistics given are believed to be complete and accurate we cannot guarantee their completeness or accuracy. Performance information is not the performance of a single account, but a compilation of several accounts over time, and is based on the physical trading ticket. THIS INFORMATION IS PROVIDED FOR EDUCATIONAL/ INFORMATIONAL PURPOSES ONLY. These results are not indicative of, and have no bearing on, any individual results that may be attained by the trading system in the future.This trading system, like any other, may involve an inappropriate level of risk for prospective investors. THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CAN BE SUBSTANTIAL AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prior to purchasing or leasing a trading system from this or any other system vendor or investing in a trading system with a registered commodity trading representative, investors need to carefully consider whether such trading is suitable for them in light of their own specific financial condition. In some cases, futures accounts are subject to substantial charges for commission, management, incentive or advisory fees. It may be necessary for accounts subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. In addition, one should carefully study the accompanying prospectus, account forms, disclosure documents and/or risk disclosure statements required by the CFTC or NFA, which are provided directly by the system vendor and/or CTA’s.The information contained in this report is provided with the objective of “standardizing” trading systems performance measurements, and it is intended for educational /informational purposes only. All information is offered with the understanding that an investor considering purchasing or leasing a system must carry out his/her own research and due diligence in deciding whether to purchase or lease any trading system noted within or without this report. This report does not constitute a solicitation to purchase or invest in any trading system which may be mentioned herein. ICON ALTERNATIVES LLC AND STRIKER SECURITIES,INC. MAKES NO ENDORSEMENT OF THIS OR ANY OTHER TRADING SYSTEM NOR WARRANTS ITS PERFORMANCE. THIS IS NOT A SOLICITATION TO PURCHASE OR SUBSCRIBE TO ANY TRADING SYSTEM.
Disclaimer The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance is not necessarily indicative of future results.
Futures Trading Disclaimer:
Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily “leveraged”. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the clearing firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.