ALGO TRADING
As quantitative traders, we focus on identifying market opportunities through data and disciplined research. We build our own models—primarily mathematical—and subject each one to rigorous stress testing based on historical market data. Only strategies that meet our standards move on to further analysis and development.
ENCHIONS
KSN
KSN is the name of our flagship strategy. It is a comprehensive mathematical model that estimates the fair value of the underlying asset on a tick-by-tick basis. When the market price deviates materially from the model’s estimate, that deviation may create an entry signal. Additional inputs, such as volatility, are incorporated to reduce false signals.
We evaluate KSN from a long-term investment perspective and assess its performance on an annual basis. Since 2008, the strategy has outperformed the SPY index in most years. Its long backtesting history suggests that it can adapt to a wide range of market environments.
KSN primarily trades options, but the underlying logic can also be applied to CFDs and forex. The strategy mainly trades call options on the long side, but it can also use put options on the short side. This flexibility helps it remain effective across changing market conditions; for example, it performed especially well in 2022 despite the broader bear market.
YEAR BY YEAR
As shown in the table below, the Enchions KSN strategy has significantly outperformed traditional passive investing in backtests over the long term. Based on historical testing, it has delivered an average annual return of more than 50%, with an average drawdown of around 25%. These results are based on backtest data and do not guarantee future performance.
HOW TO JOIN THE ENCHIONS KSN STRATEGY
Our automated trading system runs on a dedicated external Linux server to ensure stable, uninterrupted operation. We secure our servers against unauthorized access and rent them from leading global providers. The annual server cost is $150.
Once the server is ready, we install the full software environment required by our system and configure the infrastructure for reliable operation. The one-time setup fee is $400, and the installation process typically takes about three days.
All you need to do is open an account with Interactive Brokers and provide the trading capital.
Once your server and IBKR account are ready, we will guide you through the setup and show you how to monitor the system.