Autotrading with iQ can be a powerful tool for portfolio growth and diversification, but success requires the proper mindset and expectations. 

Here are 6 fundamental principles every investor must understand and accept:

1.  Autotrading Is Not an ATM

iQ Autotrading is a powerful portfolio diversification tool, not a source of quick gains for immediate financial needs. A disciplined, long-term approach is key to maximizing its benefits.

2. Drawdowns Are Normal — And Necessary

Account equity declines (drawdowns) are unavoidable and can occur at any time. In fact, market growth and volatility ensure that every trading strategy’s largest drawdown is still ahead. Fortunately, they are also completely normal and part of long-term success and can represent tremendous opportunities for starting. Savvy investors embrace these realities and realize that every prior run-up (period of strong performance) was preceded by a drawdown. 

3. Short-Term Results Are Random 

As with all investments, short term results can and will vary wildly. Despite best efforts, iQ Autotrading may not deliver returns exactly when you want or need them.

4. Most Months Generate Modest Gains or Losses 

iQ Autotrading programs often generate most of their gains within just 3-4 months each year. Waiting for the "perfect moment" to start could mean missing the best month of the year and staying invested at all times is crucial. (Caveat: investors must abide by their own risk tolerance.)

5. Risk Remains Constant, Even in a Drawdown

Unlike hedge funds, iQ Autotrading programs don’t deleverage during a drawdown. To maximize long-term expectancy, they maintain the same daily budget, which means the losses can add up quickly in a single month.  BUT, it also means the recovery is as statistically probable as the drawdown itself. The hedge fund phenomenon that a 50% drawdown requires a 100% return to breakeven does not apply here! 

6. Neither a Run-up, Nor a Decline, in Stocks Guarantee Autotrading Gains 

iQ Autotrading programs do not track or correlate with stock market performance. By design, our algorithmic strategies typically (though not always) outperform the most when traditional equities decline, thus adding true diversification to your portfolio.  Keep in mind that our adaptive algos can struggle at times, sometimes for months, while they adjust to changing market conditions, so patience may be required.