VAREA is initiated by Algo to research and develop digital trading algorithms with a focus on prudent risk management and sound investment objectives. VAREA’s algorithms are a synthesis of analytical rigor and deep analog insights that are tested robustly before injecting capital under risk constraints.
VAREA applies prudent risk management principles at the fundamental trade level instead of a portfolio level. VAREA operationalizes risk management through systematic stop order management to manage losses and lock in modest profits. Every trade has a defined risk and a defined profit target (each specified by our proprietary algorithm) at trade initiation. Risk and Return targets are available across a spectrum of Risk Appetite profiles. VAREA recognizes that every investor has a preferred “sweet spot” on the risk spectrum during their life cycle. There is no “one size fits all” on risk profile spectrum that will serve all investor needs. In response to this need, VAREA has the flexibility in offering its products on a few levels on the risk spectrum. A comparison of these levels is illustrated in the table below. Weighing these levels with different investment size (number of contracts) can produce infinite risk profile customization possibilities. VAREA strongly urges working with your broker or financial advisor to develop a risk profile that best works for you.
VAREA recommends starting with a broker assisted program to get the best experience from its products. Users always have the flexibility to migrate to a “self-directed” service once they have sufficient experience with the system performance. Contact your broker or reach out to us directly if you need a list of brokers who are familiar with VAREA’s products.
It is important to note that all risk profiles described below are pursuing the same market opportunity – the differentiator being trade management at different risk levels. The sensitivity of returns to changes in risk levels varies by asset and is neither linear nor constant.
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