Swarm Technology today announces the launch of its unique managed futures trading platform, Swarm XVI.  

Using artificial intelligence (AI), Swarm XVI applies a form of biomimicry to trade a portfolio of 16 liquid futures markets in a way that extracts information more efficiently than many existing methods. 

The program has been developed to emulate and deploy the naturally occurring phenomenon of ‘swarm intelligence’; where the collective behaviour of a colony of simple ‘agents’ outperforms the sum of the individuals. 

Swarm has gone some way to verifying its 15 year back-test with a 17-month live trading period. The initial funds came from the Shirlock family office. During this time, Swarm XVI has: 

·       Demonstrated a Compound Annual Growth Rate (CAGR) of 23.5%*, with an annualised volatility of 18.6%* in back-test and live trading 

·       Shown low correlation to the S&P500; 0.10 

·       Outperformed the Soc Gen CTA Index; 23.5%* vs 2.27%** (CAGR since 01/2005) 

·       Year-to-date, Swarm XVI is +14.2%* versus -1.6%** reported for the Soc Gen CTA Index. 

Accounts managed by Swarm are available with immediate effect to professional investors and eligible counterparties through Privium. Through its partnership with Privium, Swarm is fully authorised to offer fully regulated managed accounts.

Swarm Technology is led by CEO Pan Yiannakou, COO Charles Drew and CCO Ian Russell, who bring more than seven decades of combined experience in systems, trading, risk management, legal and financial disciplines.

Pan Yiannakou, CEO of Swarm, said: “While AI trading has earned a reputation for being complex and inaccessible, the concept of Swarm XVI is simple. Our technology harnesses the natural power of swarm intelligence to aim to make better, more efficient investment decisions. We have seen highly promising results from our blind back-test which is supported by the live track record.” 

“For years, even decades, AI has been deployed on trading floors for high-frequency trading and to make split second decisions. Swarm takes a different approach. Our efficient and low-cost strategy means we only sample data and trade once a day. The system targets medium-length positions with a mix of strategies.” 

Clayton Heijman, Managing Director of Privium, said: “Privium has always been committed to supporting and catalysing the growth of ambitious trading strategies. Swarm Technology is no exception: we have been consistently impressed by the effectiveness of the program and its performance over a long-time horizon. It is rare to see a strategy that has been through such different and thorough market conditions and which hasachievedimpressive returns. We look forward to seeing the impact that the team at Swarm will bring to investors.” 

Ralph Kanter, from the Shirlock family office, said: “We have been very satisfied with the returns over the past 17 months. We have geared the Swarm XVI program and despite a difficult period for markets globally, I have seen a 43% gross return on my investment. The Swarm team have developed a remarkable product.”

*pre-fees

**estimate