FAQ – Smart Trading™

Smart Trading

What is the IOB Smart Trading System (STS)?

The Smart Trading System (STS) consists of many proprietary algorithmic trading strategies to take advantage of highly volatile crypto markets, and to hedge the existing crypto holdings with both long and short positions.

In addition to its algo trading strategies, STS includes a suite of institutional-grade portfolio management tools and risk-control algorithms. We are in talks with several top-rated exchanges to integrate STS with their trading platforms to give their pro traders a comprehensive suite of trading strategy, portfolio management, and risk control tools.

How will STS benefit the traders and exchanges?

IOB STS is aimed at professional traders. It gives traders up to 20 pre-defined trading strategies. Starting Q2 2019, traders can build their own trading strategies on STS with no coding skill required.

STS Social Trading allows top traders to let their trades be mirrored by other followers for any combinations of fee and incentives set by the lead traders via smart contracts hosted on STS.

IOB STS brings institutional investor and trader traffic to partner exchanges. Working with top cryptocurrency exchanges, IOB provides the exchange traders a suite of professional portfolio management and risk control tools.

Who will be using the IOB Smart Trading System (STS)?

The STS is available for qualified professional traders who want to take advantage of cryptocurrency trading markets and is offered to our institutional clients and through partnerships with broker-dealers in the US, Europe, Australia, and Asia.

We power traffic and provide volume; we connect professional traders and exchanges together to enable trading liquidity.

What trading system have you bought for your Smart Trading System?

IOB does not use any packaged commercial trading systems. With its top management coming from years of high frequency trading (HFT) and quantitative trading totaling billions of dollars in stocks, commodity futures and index futures around the world, IOB develops its own proprietary trading systems consisting of Decision Engines, Order Flow Management, Risk Control and certain proprietary hardware.

What does the STS trade?

IOB plans to trade the most liquid cryptos (top 3 currently) and their futures contracts for its own funds at this point in time. More markets will be added over time when the exchanges and instruments meet our trading criteria.

Who makes the trading decisions on the STS?

IOB STS is 100% automatic. The decisions are made automatically by our Decision Engines. No human will push a buy or sell button on the STS.

How does the STS make trading decisions?

IOB has developed over 12 trading strategies based on 3 proprietary charting systems, quantitative analyses, Sentiment Indicators that combine the in-house software and hardware systems developed in the past 5 years.

With the recent investment in Fundamental Capital in Germany and Witee in China, the STS expects to develop the first crypto-specific trading strategies on blockchain platform, managed by traditional quantitative trading with smart contracts.

What is your average holding period?

It varies greatly. And it’s the nature of the high-performance algo trading. A trade (both entry and exit) can be completed in a few seconds or a position can be held for weeks, even months.

Does it go both long and short?

Absolutely. Shorts (selling high first and buying back low later) are the most fun (and usually the most profitable on our historical trading results).

What are the IOB custom charts?

Without the dedicated fiber-optical data-feeding lines, cryptocurrency trading only relies on unstable internet connections. Current crypto trading suffers large data packet losses and significant latency that are not suitable for many of today’s institutional trading strategies. We have developed custom charting systems that overcome these problems.

Are they candlestick charts with IOB special indicators?

No. We developed our charting system from ground up. They are specially designed for high-performance quantitative and high frequency trading strategies. It is not constructed with the common price-time elements. Our charting system has the non-server-based trading system in mind with a high-degree of tolerance for data loss and time-stamp inaccuracy.

Will Smart Trading™ manage a hedge fund for outside investors?

Currently, no.

Will Smart Trading™ provide advisory services to other asset managers and investors?

Yes. As a part of our Smart Exchange (SmX) features.

What is Smart Trading™ Social Trading?

As part of the asset allocation strategy, IOB Smart Trading™ platform allows traders to mirror other traders’ trades and asset allocation strategies automatically.

What is IOB TaaS™?

The major difference between ‘traditional’ proprietary trading systems is that the IOB Smart Trading platform will be an expandable platform. Client firms can use one of the built-in trading strategies, or develop and build their own trading strategies on top of the IOB Smart Trading platform with no coding needed.

For large professional trading firms, institutional traders and family offices, IOB will also provide trading advisory services on a tiered-features basis. Clients from North America, Asia, Europe, and Australia can have access to IOB’s trading platform, co-hosted server infrastructure, dedicated data connectivity, custom trading strategy development and setup of overseas trading servers.

Are IOB token holders entitled to the Smart Trading™ profits?

Yes. IOB management will declare and distribute Smart Trading profits from hedging, arbitraging, and position trading proceeds from time to time as part of the IOB Token Dividend Distribution.

Wait a minute! You make your own trading boxes (hardware) too?

Yep.