FAQ.

Intalcon investment strategies are 100% systematic using algorithms for both buy and sell decisions as well as position sizing. All strategies detect recurring patterns in price fluctuations of stocks and futures contracts and exploit mean reversion and trend moves by applying robust algorithms.

Intalcon investment strategies profit from early trend recognition, which leads to profits from long and short-term trends. Further, in all strategies, a volatility-based stop-loss is used to control risk and limit per-trade losses in contrast to the open-ended buy-and-hold strategy. This ensures a constant risk per position and allows the strategy to handle high and low volatility markets. Of course, the risk is fairly distributed over many liquid futures markets or equities, reflecting the corresponding benchmark allocation.

Intalcon strategies typically feature around 15 round-turns per stock/future contract per year. The average holding period is around 16 calendar days.

The strategy combines both, mean reversion and trend elements, so it can profit in all market regimes. Markets moving side-ways offer the strategies above-average opportunities in beating the corresponding benchmark performance.

We offer strategies that we have created ourselves and strategies that have been developed by trusted third party partners. In principle, however, we only offer strategies if the source code is available to us and we have the authority to act on it. This is also the case if the customer wishes to deposit the source code with an escrow service.

Although the strategies have not been modified so far, we conduct continuous research in system development in order to be prepared for any loss of efficiency in the strategies currently used.

Intalcon ensures ESG compliance for all equity strategies by adhering to the methodology of the benchmark provider.

An individual portfolio adaption is possible, provided that there are no liquidity constraints and a benchmark exists or any other comparative scale by which we can calculate the alpha.

A double-digit million amount is recommended to trade one of Intalcon`s investment strategies. Instead of trading ourselves, we invest in available investment vehicles of our clients, provided these assets are 100% managed by our algorithms.

The strategies have been designed for the exclusive use of institutional clients who want to outperform leading equity and bond market benchmarks. The suggested minimum capital amounts for each portfolio (as seen on the Intalcon website) have been picked to reflect (i) minimal benchmark tracking error and (ii) the intention to grant only a small number of institutional users the ability to either market their own white-label product or benefit from the strategies’ power to enhance the performance of their own in-house trading.

We estimate that each strategy can easily handle a total that is between 1 and 2% of the underlying’s average daily volumes. Given the available strategy-variations, the amounts traded in each of the suggested minimum accounts have been designed so as not-to-exceed 0.02% of those average daily volumes.

We take great care to ensure that the performance of our strategies is not compromised at any time by the amount of capital under advice. In practice, each strategy`s maximum capital capacity (defined by the underlying market`s liquidity) is divided into smaller blocks. Each block is traded with a slightly modified version of the main algorithm, thus eliminating market impact issues.

All our backtests rely on high-quality data from Refinitiv, CSI, Siblis and other high-quality vendors.

All backtests take into account trading costs of 0.02% per half-turn.

For our strategies which trade futures contracts, interest income on capital not used to cover margin requirements is taken into account. The equity strategies do not take into account interest income for occasional uninvested cash.

Intalcon strategies target an investor`s net-advantage that exceeds (on average) 25% of benchmark`s total return. The volatility of all our strategies is scaled to the benchmark volatility, so it has the same risk while returns are higher.

Unless otherwise stated, the performance records shown on the website are backtest results.

We calculate all metrics on a monthly basis.

Because they do not add systematic value to our algorithms performance and are then also not included with any backtesting.But because the equity strategy is expected to collect dividends at the same rate as its benchmark the performance should retain its integrity.

We scale all of our strategies to the volatility level of the referenced benchmark which enables an apple-to-apple comparison from the risk perspective.

Intalcon provides clients with systematic investment strategies that generate returns exceeding its benchmark`s returns (alpha). Besides a monthly sercive fee of 0.04%, Intalcon charges a 25% performance fee on the generated alpha using a high water mark mechanism with a 24 month lookback period. All fee calculations are based on the asset value at each month`s end.

We strive for 100% independence of our customers. Therefore, we recommend a client-site installation of our algorithms. However, during the trial period, all important trading information (new buy and sell orders, cancellations or modifications of limit prices) are displayed in Intalcon`s mobile app. The app is an easy and comfortable way to stay up to date and can be used both on Apple and Android devices. Alternative setups (software installation on the customer`s IT infrastructure or VPS access) can be arranged after consultation.

For our customers we offer an escrow service agreement. This service helps protect all parties involved in a software license by having a neutral 3rd party escrow agent hold source code, data, and documentation until a mutually-agreed-upon event occurs.