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Frequently Asked Questions


Interactive Brokers
Crypto
Aikido
Quant
Strategies
Strategy

You can find out how to integrate your Interactive Brokers account Aikido in this article.

If you are having difficulty, some of the common causes (and how to fix them) can be found here.

Read the following carefully, 9 times out of 10 it will resolve your problem.

  1. First it’s always a good idea to turn it on and off again (disconnect the broker and try reconnect)
  2. Ensure you are using the correct IBKR username and password
  3. Ensure you have IBKR PRO not IBKR Lite (via ‘Settings > Account Settings > Configuration > IBKR Offering Type’)
  4. Ensure you have configured 2-factor authentication . People overlook this one frequently!
  5. Ensure you are logged out of IBKR anywhere else before integrating with Aikido

You can connect the following stock brokers with Aikido:

You can have as many stock broker integrations as you like, and create as many stock portfolios as you like.

We are currently working on integrating with Alpaca and TD Ameritrade integration.

You can connect the following crypto exchanges with Aikido:

You can have as many crypto integrations as you like, and create as many crypto portfolios as you like.

Aikido Finance researches quantitative investment strategies and provides that research to the public.

With Aikido you can build your own quantitative portfolio inside your own broker/exchange.

Aikido's mission is to democratize quantitative investing.

You can read more about Aikido's mission here.

Quantitative investing involves making investment decisions using a systematic, data-driven approach based on historical evidence.

Quants attempt to extract intelligence from financial data to make smarter asset allocation decisions. While there are various breeds of quantitative investing, the underlying concept remains constant; exploit data to produce outperformance - alpha.

Aikido focuses on a form of quantitative investing known as factor investing.

Some of the benefits of factor investing include:

  • Enhanced diversification
  • Uncorrelated market outperformance (alpha)
  • Better risk management

Quantitative investing is one of the fastest-growing areas in finance.

  • 86% of hedge fund managers expect the number of quant fund managers to increase over the next 5 years
  • On a typical trading day 90% of trades are made by computers.
  • 6 out of 10 of the top performing hedge funds are quant firms.
  • Use quantitative techniques to future-proof your investing help improve your returns.
  • Automate your investing to reduce stress, and spend less time researching
  • Manage your own portfolio to build long term wealth.

In a nutshell: Use the same techniques as the top quant hedge funds, without the barriers to entry.

Aikido Basic is totally free to use. With Basic, you get access to basic investment strategies (stocks & cryptos) and paper trading.

To access Premium strategies, broker integration (live-trading), and impact add-ons, you can upgrade to Aikido for $9.99 per month or $99 per year. You even get a 30 days free trial to try it out!

You can check out our plans here..

Rebalancing your portfolio is an important part of managing your investments. Rebalancing means buying and selling positions in your portfolio to get back to your original asset allocation. When one asset class significantly outperforms another, your portfolio drifts from its starting allocation. The quality of the quantitative signal also deteriorates over time.

For stock-pickers, this can be a laborious process. However for quants this process is very structured and replicable.

Every Aikido quant strategy has a rebalance period (usually every month); when rebalance is due you will be notified.

At rebalance, you will see the list of stocks/shares to buy/sell and can send those orders to your connected broker with the click of a button. Basic users can follow along with the rebalance in whichever broker they are using.

The minimum investment amount varies per strategy as the exact screen of stocks and number of shares changes moment to moment.

The absolute minimum value for an integrated/automated strategy is $1000.

Investors should aim to invest at least $10,000 into their quant portfolio to account for fees.

Aikido Premium helps you:

  • Use quantitative techniques to future-proof your investing help improve your returns.
  • Automate your investing to reduce stress, and spend less time researching
  • Manage your own portfolio to build long term wealth.

Premium users get access to Premium quantitative investment strategies, broker integration, and impact add-ons.

You can check out the Pricing page to view the full list of benefits.

Paper trading is the practice of simulated trading so that investors can practice buying and selling securities without the involvement of real money.

You have two options to paper trade with Aikido.

1. Create a Manual portfolio

You can create a Manual portfolio in Aikido which allows you to quickly create a portfolio without any broker/exchange integration. Indeed, you can follow along in any broker you like if you choose this option.

2. Connect your Paper broker account

You can easily connect your Paper Interactive Brokers account with Aikido to do simulated trading and test out the platform.

Aikido is a global platform and can be used around the world.

The quantitative investment strategies currently contain US stocks only, but we will be introducing global strategies in 2023.

For specific country restrictions, see our T&Cs.

The list of stocks generated by a strategy is totally dynamic; the algorithm chooses the stocks.

The stocks and number of shares shown is updated every 15 minutes.

1. In the Japanese martial art Aikido, one uses their opponent’s own momentum against them; ‘momentum’ is one of the most important factors in investing.

2. The martial art is very calm, slow, and peaceful. Yet it is calculated and very powerful at disarming the opponent. This is how we see quantitative investing: calm and powerful.

3. The word ‘Aikido’ in ancient Japanese (Kyūjitai) is spelt with three characters: 合氣道. The final character (道; dào) can be translated in english to the way or the path. We’ve always thought that a rules-based approach to investing is the best ‘way’ to financial independence.

We've got a vibrant Discord community, in which you can chat with like-minded quants.

Access the Discord here..

Aikido currently has 17 long-term stock and crypto quantitative investment strategies.

We will be adding more strategies to the list over the coming months.

Aikido supports Stocks and cryptocurrencies.

We are planning on adding ETFs in the near future.

Options and forex will not be available on Aikido in the near future.

Aikido provides pre-built quantitative investment strategies.

We are currently building out Custom Strategy functionality and it is progressing nicely! You can check out our public timeline for more information on the release date.

You can create a portfolio with Aikido using one of the quantitative investment strategies provided in the strategy catalog. You can add your own stock to a Manual portfolio after it is created for reconcilliation purposes.

However you cannot create a custom portfolio from scratch with Aikido; you must use a strategy.

Backtesting is a method for seeing how well an investment strategy might have performed historically. Backtesting assesses the viability of a quantitative strategy by discovering how it would play out using data. If backtesting works, investors may have the confidence to employ it going forward. Backtesting simulates a strategy as if it were used at the time.

Aikido backtests over 20 years to ensure the long-term performance of the investment strategies provided. We have in-house quantitative architecture and use Factset as our data provider, providing us with 116 gigabytes of global financial information, across 326 exchanges, going back to 1980.

There are a few important factors/biases that should be addressedaccounted for when building a backtester, cleaning the dataset, and using the backtester. Those are:

  1. Black Swan Reconciliation
  2. Survivorship Bias
  3. Spreads
  4. Cost of carry/Holding costs
  5. Inaccurate Price Simulation
  6. Change in Contract Specifications
  7. Look-ahead Bias (Point-in-time database is crucial)
  8. Curve-Fitting and Optimization Bias

We will be adding more long-term quantitative crypto strategies in the coming months.

Quantitative investing involves making investment decisions using a systematic, data-driven approach based on historical evidence.

Aikido focuses on a form of quantitative investing known as factor investing.

Some of the benefits of factor investing include:

  • Enhanced diversification
  • Uncorrelated market outperformance (alpha)
  • Better risk management

An Aikido quantitative investment strategy is an algorithm that analyses the entire universe of stocks and cryptos and builds a portfolio targeting specific investment factors.

Each Aikido strategy contains 15 stocks, is equal-weighted (more weightings coming soon), and has a rebalance period of one month to a year.

No. We take a long-term approach to quantitative/algorithmic investing. We are an investment platform, not a trading platform.

In fact, to the best of our knowledge, we are the only long-term quantitative platform for retail investors in the world!

Think algo-investing, not algo-trading.

Dollar-cost averaging (DCA) is an investment strategy where you invest a set amount of money at a specified time interval. This results in reduced impact of volatility of a particular asset on your overall investment. Dollar-cost averaging removes the high risk of attempting to predict the purchase and sale of selected assets at their best prices.

Eg. Invest 100$ into Bitcoin (BTC) every month.

1. Connect your crypto exchange

2. Select the coin(s) you want to DCA

You can select from the 100 largest coins by market cap, or choose a pre-built Coin Collection.

If multiple coins are selected, the portfolio is equal-weighted.

3. Choose the DCA frequency

  • Daily
  • Weekly
  • Monthly

4. Choose the DCA amount ($)

You can read the full article on crypto DCAs here.

We are constantly adding new stock and crypto quantitative strategies. Usually 1-2 per month.

You can use as many strategies as you like and build as many portfolios as you like. You can also integrate with as many stock brokers and crypto exchanges as you like.

We but no limits on this.

Yes. Wealth managers and RIAs can also use Aikido Finance.

  • Use quantitative techniques to future-proof your investing help improve your returns. Capture the next generation of client
  • Automate your investing to reduce stress, and spend less time researching and building portfolios.
  • Easily manage your clients portfolio to build long term wealth.
  • Save Money. Aikido strategies have a lower expense ratio than ETFs

In a nutshell: Use the same techniques as the top quant hedge funds, without the barriers to entry.

You can read the full business proposition here.

Please don't hesitate to get in touch if you are interested.

You can find out how to pick a quantitative investment strategy by reading this article.

We have lots of educational material to help upskill your knowledge of quantitative investing. Some of the best places to get started are:

Aikido Finance
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