Some Context
At Squirl, our ultimate goal is to automate financial markets through algorithmic trading strategies that operate across multiple asset classes. We started in early 2020 as a team of 3 college students (Adi, Brendan, and Alex) with the intent of creating automated strategies in the equities market. While we are primarily an equity and equity options focused firm, we decided to venture into the world of forex back in March of 2021 after a strategic consulting inititaive formed with BCM Partners. Over the past couple months, we have done hundreds of backtests and iterative updates to create an inhouse forex momentum strategy based on EURUSD.
Paper Trading Results
After a month of paper trading (from November 7th to December 7th 2021), we are pleased to share that our strategy has ammased over a 7.3% portfolio return and 70% win rate! Between the volatility associated with deteriorating macroeconomic conditions, the Fed Chair announcement, and the Omicron Variant, our startegy was not only able to navigate these current market conditions well, but was also able to capitalize on momentum shifts in this turbulant environment. By identifying opportunities with short-term trends that may last a couple days at most, this strategy is able to take advantage of directional strength in the Euro or US Dollar based on a variety of technical indicators.
A Shift in Business Direction
With all of these impressive results in mind as well as the feedback we have received from our business advisors (Oscar and Jonathan), we have come to a consensus that it is best for us to focus all of our effort on developing more automated strategies as well as the end-to-end pipeline required to operate them. We are especially excited to work with more sources of alternative data as well as doing more detailed testing over the work of our senior Quant Trader James, who has developed some analytical models that identity complacency in financial markets and assess the over/undervaluation of assets relative to piers. As a whole, we are extremely optimistic for what 2022 has in store for Squirl as we grow our operations and deploy more trading strategies live.