I think it is fair to say that most wannabe full-time traders dream of quitting their corporate mundane job to become a professional trader, taking charge of their financial destiny.
With this in mind you would think it should be fairly easy for an allocator such as PsyQuation to allocate millions of dollars to traders who pass only 2 options with 3 criteria in each:
- One year track record or more;
- Account with 1,000+ AUD;
- A PsyQuation Score™ of 65 or more;
- 6 months track record or more;
- Account with 1,000+ AUD
- A PsyQuation Score™ of 75 or more;
Well this is not as simple a task as it may seem. First lets start with some uncomfortable truths. FX trading is a zero sum game at best (don’t ignore transaction costs) and our database of 20,000 accounts suggests around 75% of traders lose money with an average loss of -35%. With this backdrop you should expect the task of finding trading talent to be heavily stacked against us, let alone finding traders with a PsyQuation Score™ above 75.
The PsyQuation team prides itself on solving complex problems, this is probably a good time to share our backstory and describe why we think our platform has the potential to disrupt the social trading platforms such as myfxbook, FXStat, Zulutrade …… and then challenge the more prestigious institutional platforms such DB Select (Deutsche Bank) and Newedge amongst others.
The PsyQuation story begins in 2010 when mathematician Vladimir Krouglov, Ph.D. enjoying a distinguished academic career embarked on a career in quantitative finance as part of a quant team working for me as I traded capital markets. I was a trader with a Ph.D. in Behavioural Finance embracing a style which I called Quad Unity Theory (fundamentals, technicals, quant & behavioural overlay) and we were joined by another mathematician Eugene “U-Genius” Olin, Ph.D.
After building a library of quantitative tools and working really well together we came up with the idea of building a platform for incubating traders which the 3 of us co-founded in 2012 called RAPA (Risk and Profit Analyser). Our goal and point of difference back then was to develop an algorithm that would drive the allocation process which we called the RAPA Score. After building a great community, becoming profitable after about a year of launch and making plenty of mistakes, we were presented with an opportunity to merge our platform with another startup wanting to play in the same space and free us to do something new.
Enter the Worlds 1st Robo Trading Coach
Vlad and I started PsyQuation in mid 2015 with the ambition of building the worlds first Robo Trading Coach to solve a brokers pain point of retention, an elaborate alert system that identifies when traders make mistakes of a risk and behavioural nature, providing the trader with suggestions how to rectify their mistakes with our robot becoming smarter through machine-learning on our growing ecosystem. According to our research traders who follow our alert suggestions improve their trading performance by more than 35% on average.
We continue to sell licenses to brokers to offer PsyQuation to their clients. As PsyQuation became better known for its ability to analyse traders performance at multiple dimensions: intraday, end of day, per trade, behavioural, risk, skill you name it we have got it covered, we were approached by a number of interesting people. I wish to highlight 2 of these people who have played an instrumental part in our comeback to the allocation business.
David Hobart (1)
Our business wouldn’t be what it is today without the incredible teammate, investor and director we have in Dave. A 6ft6 giant in every sense of the word. Dave enjoyed a distinguished career as an institutional trader for more than 23yrs spending his last few years running the hedge fund allocations business of a publicly traded alternatives company, at the same time fulfilling his passion for mentoring traders with his brand of high performance coaching as a sideline. I myself have been blessed to have a daily debrief and tap into Dave’s wisdom as we work together to grow PsyQuation.
Sean Lee (2)
One of the many good things Dave has done for PsyQuation is introduce us to Sean Lee who is one of the driving forces behind our allocation business. Sean is a professional with more than 30yrs of institutional experience in the FX industry. What makes Sean such a natural fit and important partner to PsyQuation, ignoring his large contact base, is his passion to help other traders emerge and become fully fledged professionals, we look forward to a long a fruitful partnership.
We genuinely want to give traders a fair go, if your trading produces attributes that our algorithms believe makes you a high probability for future above average risk adjusted returns we want to know you. We don’t care about what school you went to or what company you worked for, we are interested in performance.
There are no guarantees that you will receive an allocation but we have multiple allocators who have trusted PsyQuation to screen trading talent based on our PsyQuation Score™ and our teams experience. With our approval our allocators are likely to allocate fairly large $’s for you to manage.
PsyQuation is a financial technology company that aims to assist the allocator and trader achieve their return objectives. PsyQuation is FREE for the trader, please click here and connect your account. If you do not find your broker amongst our broker partners you can connect from any broker using our Universal Plugin.
Once you have connected to PsyQuation we encourage you to add your account to the Leaderboard so that allocators can discover you. Our job at PsyQuation is to identify and develop trading talent.
Looking forward to working with you and trying to help you get funded or simply become a more profitable trader.
Michael Berman, Ph.D. on behalf of
The PsyQuation Team.