Vancouver’s EonLabs has delivered investment returns that most could only dream of. Their system conducts thousands of lightning-fast trades per day, churning through $3 billion in monthly trade volume – generating 530 percent growth since September 2020.
“No popular mutual fund or ETF even comes close to that, nor do the vast majority of specialized hedge funds,” says EonLabs CBO Victor Hogrefe. “People talk about spectacular spikes from cryptocurrency, but if you were to compare with Bitcoin, that return was just 185 percent over the same time period.”
“Our quantitative trading software, algorithm, and strategies lets fund managers achieve amazing gains for their investors by taking advantage of momentary dips and jumps in the market,” Hogrefe explains.
EonLabs officially launches this month and already over $20 million in digital assets are managed using its trading system. The company doesn’t directly work with investors to make trades. Instead, it is now allowing wealth management firms to offer this AI-powered trading system to their investors.
“We timed our launch with completing a process to ensure the complex algorithmic system was safe,” Hogrefe says. “It was about ensuring we won’t suddenly stumble into a flash crash, or lose everything on some system error. These are serious concerns, and this has happened to other quant funds. Our financial advisory clients and their investors can feel secure in using EonLabs’ technology.”
No human being can possibly keep up with the speed and consistency of automated algorithmic trading systems. While traditional trading systems replicate outstanding human trader’s behaviors, EonLabs’ approach is to use AI to automate trading without telling it any specific strategies.
Most trades conducted on stock exchanges around the world today are actually algorithmic in nature. This includes high frequency funds, and other quant funds looking to cash in on tiny discrepancies in markets on very short timescales. “The old way that we often imagine, with people shouting on a stock market trading floor and buying and selling, or even traders sitting behind a computer in a cubicle, that’s increasingly rare,” Hogrefe explains.
“Today, by using machine learning, an algorithm can see opportunities that may exist for only a few seconds at a time. It can recognize when panic selling is happening, or perhaps investors seem to be making irrational or emotional buying decisions. The algorithm ultimately lets us buy low and sell high faster and more effectively than other trading systems out there – and we’ve got the returns to prove it.”
Already, EonLabs’ AI-based trading strategies have enabled a select group of early adopters to enjoy an incredible risk versus reward scenario. “This style of investing is for a certain kind of investor,” Hogrefe explains. “It’s for someone who already has a high net worth and wants exposure to a completely uncorrelated, market neutral strategy which certainly carries a higher risk than other forms of investing, but also may deliver far higher rewards than they can get elsewhere.”
While it was undergoing testing for three years, EonLabs’ trading platform was effectively a top-secret venture known to only the founders and a select network of investors.
“We didn’t know that it would work out as well as it has. And it almost didn’t happen. Before we’d made any money, we invested heavily in computing and hardware infrastructure to handle all of the trades,” Hogrefe explains. “These are significant costs for a startup that’s really little more than an idea. But it worked out and we’re excited to see where it goes.”