ideas: Dr. Geke, what does Quant4you do?
Dr. Michael Geke: Quant4you is an online platform offering AI-generated trading signals for self-directed investors. Traders and investors who want to manage their capital actively and independently will find what they are looking for here. We provide trading signals and investment ideas that users can implement themselves in their own brokerage accounts. We do not manage client assets; instead, we help investors make more data-driven and systematic investment decisions.
And what sets Quant4you apart from traditional investment services?
The difference lies in our methodology. Quant4you uses AI and machine learning. Our signals are not based on gut feeling, market sentiment or straightforward fundamental analysis, but on mathematical and statistical principles. We analyse price patterns over extended periods and ask ourselves: When does a stock start to decline? When does it stabilise? And when does the probability of a new upward move increase? Our models are designed to identify these transitions earlier than conventional indicators.
Could you explain that in simpler terms?
A stock essentially moves upwards, downwards or sideways. However, even during a downtrend, its price fluctuates around the underlying trend, sometimes with significant rebounds. These price movements often last between five and fifteen trading days. We can calculate probabilities for the sequence of these waves. When the probability forecast reaches a sufficiently high level, a buy signal is generated and communicated to our users. The precise approach varies depending on the system.
Wouldn't ChatGPT be enough for that?
No. Trading systems require reliability, statistical validation and an extensive track record of tested trades. Our systems have been tested since 2010. Depending on the model, our statistical records cover approximately 1,000 to 7,000 trades. We also conduct stress tests to assess the robustness of our systems.
What models do you offer?
We distinguish between short-term traders and longer-term investors. For swing traders, we offer MOUNT, ARROW and SOLID. These models generally operate with an investment horizon of five to fifteen trading days. MOUNT is more aggressive, ARROW is more balanced and SOLID is more defensive. For longer-term investors, we offer BAND, a more growth-oriented model designed for equity portfolios in Europe and the US. This means we have something to offer almost every type of investor.
But isn't implementing the signals complicated?
Not at all. Signals for the following trading day are calculated overnight and published in the morning. Users can see new buy signals, sell signals for existing positions and the corresponding order details. They then enter this information into their brokerage accounts. With a little practice, the process takes just a few minutes. This also means they don't have to spend the entire day in front of a screen. Orders are generally valid for one trading day.
And how can I access all these signals?
Previously, users could subscribe to individual models. Today, we offer subscription packages. Our ULTIMATE package includes 17 quantitative models. This reduces the cost per model while offering greater flexibility. Investors can monitor, select and trade different markets, strategies and risk profiles according to their individual preferences.
Do the models also trade short?
Our equity models, such as MOUNT, ARROW, SOLID and BAND, currently operate on a long-only basis. In addition, we have developed PROTON, a long-short system for the DAX. PROTON trades short-term market movements with a maximum holding period of five days. Its simulated trading statistics show attractive profit factors of approximately 2, based on around 100 trades per year.
Interesting. And how can investors implement DAX signals?
The DAX is an index and cannot be traded directly like an individual stock. That is why we have integrated leveraged products, including open-end products from Société Générale. Suitable products can be displayed for each signal, with the corresponding entry prices automatically calculated for each product. Investors therefore do not need to perform these calculations themselves.
Wouldn't it be simpler just to buy a DAX ETF?
Investing in a DAX or S&P 500 ETF can make sense over the long term, but it also involves significant price fluctuations. Quant4you is aimed at investors who want to manage their portfolios actively. We see Quant4you as a copilot for the portfolio. Our goal is to reduce risk, increase returns or, ideally, achieve both. Our MOUNT Germany 40 system, for example, also trades individual stocks included in the DAX. Compared with the DAX, it has achieved a higher average return with lower volatility.
Does that mean investors always have to be active?
Our models work with probabilities. If a strategy generates between 100 and 200 trades per year and an investor skips many of them, some of the best opportunities may be missed. Missing an occasional signal is no disaster, but investing is a marathon, not a sprint. For the statistical advantage to materialise, investors should apply the models consistently over the longer term.
Can signals be transmitted directly to investors' brokerage accounts?
We offer an interface to Interactive Brokers, as well as integrations with comdirect, flatex and Consors, and neobrokers such as justTRADE, finanzen.net zero and Smartbroker. This allows investors to transfer and execute signals themselves through their brokerage accounts, simply and on their own terms.
If I want to get started, is there an onboarding process for new customers?
Absolutely. Supporting our users is very important to us. We offer support by email, chatbot and a personal telephone hotline, as well as webinars and live sessions. Every Monday, we also provide a review of the previous week's market developments and an outlook for the week ahead.
Thank you for speaking with us.
Interview conducted by Laura Schwierzeck.