See the following list for all of our frequently asked questions.
Alquant is a Swiss Fintech company focused on providing the best hedging solutions. Such solutions can be existing investment products, but Alquant goes further by providing this platform that allows investors to create their own tailored hedging solutions depending on their risk profile, portfolio, preferences, and more. Additional information can be found on our website: https://alquant.com.
As Alquant is committed to providing the best hedging solutions while keeping a high level of customization, we've created this modern platform on which investors can create custom hedging solutions that depend on their risk profile, portfolio, preferences, and more.
Alquant indicators are designed to support tactical investment decisions. They can quickly adapt to changing market conditions.
Our indicators focus most notably on protecting assets during market declines, hence acting as an airbag for their portfolio rather than boosting absolute performance during bull markets. As a result, our indicators may underperform in bull markets as they may miss some of the short-term upside gains.
In the long run, however, mitigating losses is a powerful way to achieve long-term outperformance. Indeed, if you can reduce your drawdown from -50% to -20%, you only need a 25% rebound instead of 100% to get back to zero.
Important note: Remember that diversification works everywhere. Thus, it is recommended to combine multiple indicators rather than basing tactical investment decisions on a single indicator.
All of our indicators are packaged in a way so that they are easy to understand and apply. They can all be summarized by a single number. All of our indicators are what we call "risk indicators". Risk indicators are indicating the risk level related to a specific subject (e.g., the Macroeconomic indicator is indicating the risk level related to Macroeconomics) for a certain underlying. For example, if the level of a risk indicator displays 20% risk, then the indicator suggests that there is a bit of risk in this subject. At Alquant, we would then typically reduce our equity exposure by 20%. One way to read those risk levels is to think of the risk level as how much your equity-like exposure should be reduced by compared to your passive equity-like exposure.
The granularity of all our indicators is daily, so they will be updated every morning between 9:00-10:00 AM CEST. We allow you to subscribe to our notifications so that you don't have to check our Platform every day (more on that below). Our indicators are made so that they can be applied with End-of-Day orders, and this is our assumption when running our simulations (see graphs in each Indicator section). It is also possible to apply our indicators during the day instead of at the close, but your performance will then deviate from our simulations.
The following is a short timeline showing an example of someone starting to follow one of our indicators. We hope this will help you better understand how following our indicators looks like.
StartYou have decided to follow one of our risk indicators for a specific underlying (which currently has a risk level of 10% for the underlying you're interested in). You thus reduce your equity-like exposure in this underlying by 10%.
Risk level update (1)You receive a notification telling you that the indicator you are following now has a risk level of 30%. You thus reduce your equity-like exposure by an additional 20% (so that the total reduced exposure matches the 30%). You place an End-of-Day order if you want to follow exactly the simulation of Alquant, otherwise you can place it anytime during the day.
Risk level update (2)You receive a notification telling you that the indicator you are following now has a risk level of 0%. You thus increase your equity-like exposure to be back at your normal/passive level. Again, you place an End-of-Day order if you want to follow exactly the simulation of Alquant, otherwise you can place it anytime during the day.
Risk level update (3)...