In this month’s update…
February Performance
Analysis: Historical Market Concentration
9 Truths About Autotrading with iQ
Limited Time Offer (though March)
Did You Know?
Performance Review
The markets tried to lift in February, but the bearish flow of news ushered in a wave of volatility and selling pressure causing the S&P 500 to drop -1.5% for the month. One of the more concerning and still developing stories is the Atlanta Fed GDPNow model is now forecasting a significant drop in GDP from a prior projection of +2.3% growth to -2.8% in Q1, 2025. While this data is not final, it is the type that if combined with other market uncertainties could lead to a longer and deeper correction, or worse.
The increase in volatility seen in February was welcomed by our autotrading programs as six of our seven programs saw gains. Meta 30 was the leader and is now up over +16% in 2025. The Max 150 program also made the most of the month finishing up +9.2%.
* Returns based on live and simulated results since 2018, using suggested funding. Does not include license fees – which start at $3,900 — see pricing below. View full performance & disclaimers here. Source for S&P 500 Sharpe ratio is Morningstar based on past 5 years as of Dec, 2024.
Past performance may not be indicative of future results.
Analysis
The five largest stock components of the S&P 500 now equate to 29% of the SPX, the highest concentration in history. The previous high was in the late 1960s and early 70’s with the “Nifty Fifty” which was followed by the bear market of 1973-74 and one of the worst stock performances in history. Here’s a comparison of other such periods:
Will this time be different? Only time will tell, but it is worth noting.
Nine Truths About Autotrading with iQ
Autotrading can be a powerful tool for portfolio growth and diversification, but success requires the proper mindset and expectations. Here are nine fundamental principles every investor should understand:
1. Drawdowns Are Normal — And Necessary
Every prior period of strong performance was preceded by a drawdown. Temporary declines are an inevitable and unavoidable part of long-term success.
2. The Best Returns Occur in Short Bursts
iQ Autotrading programs generate most of their gains within just a few months each year. Staying invested at all times is crucial—waiting for the "perfect moment" could mean missing the best month of the year.
3. Risk Remains Constant, Even in a Drawdown
Unlike hedge funds, iQ Autotrading programs don’t deleverage during a drawdown. They maintain the same daily budget, making the recovery 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.
4. Asymmetric Return Potential Favors Quick Recovery
Each iQ program is designed with the potential to generate returns that are 2-3x (or more) greater than its maximum daily loss. This built-in asymmetry allows for rapid recovery following periods of under-performance.
5. Lack of Correlation to Stocks Is a Strategic Advantage
iQ Autotrading programs do not track stock market performance—by design. These strategies thrive in market conditions where traditional equities often struggle, adding true diversification to your portfolio.
6. No Strategy Wins Every Month
As with all investments, there are no guarantees. Despite best efforts, iQ Autotrading may not always deliver returns exactly when you want or need them.
7. The Future Will Bring New Drawdowns—Plan Accordingly
Market growth and volatility ensure that every trading strategy’s largest drawdown is still ahead. Smart investors prepare for this reality, rather than fear it. But don’t worry; this is also the reason why the largest run-up will occur in the future too.
8. Timing the Market Is a Losing Game
Trying to predict the “right time” to invest is counterproductive. Whether the program is at a high or a low, starting now and gradually adding funds over time is the most effective approach.
9. Autotrading Enhances Your Portfolio—It’s Not an ATM
iQ Autotrading is a powerful portfolio diversification tool, not a source of quick cash for immediate financial needs. A disciplined, long-term approach is key to maximizing its benefits.
Final Thought
Autotrading isn’t about chasing quick wins—it’s about consistent, systematic investing. Understanding these principles will help you make informed decisions, stay committed through inevitable ups and downs, and position yourself for long-term success.
Limited Time Offer (through March)
One of our goals this year is to help our clients (new and existing) take better advantage of the iQ autotrading programs’ adaptive and self-regulating design BEFORE our programs capture their next big run up. Though investing while a program is in a drawdown can be difficult psychologically, doing so can generate outsized returns with less drawdown risk. Here’s two additional reasons to start now:
1) Help Us Help Them!
For every new or existing client who licenses a new autotrading unit of any iQ program by end of March, we will make a significant donation to Folds of Honor – a tremendous non-profit where over 90% of donations go directly to life-changing educational scholarships for the spouses and children of America’s fallen disabled military and first responders (like the heroes who risked their lives saving thousands from the devastating natural disasters of late). Last year, InvestiQuant donated $15,000 to FoH. Learn about FoH and InvestiQuant’s 2024 support here and help us do more now.
2) “Pay with Profits” Promo for the iQ Select 150 Program
Take advantage of the Select 150’s pullback in returns and use our Pay With Profits (PwP) option to purchase this popular autotrading program in March. Email [email protected] for details.iQ Autotrading programs are licensed annually and fees equate to a small percentage of each program’s Average Annual ROI. Prices start at $3,900. Request details and payment options here. Discounts are available for veterans of the military and law enforcement. Larger programs and volume discounts are available for family offices and investors seeking to invest with greater amounts. Email [email protected] for details.
Want To Learn More?
Check out Answers to Common Autotrading Questions here. If you would like to request a 1-1 call/meeting with Matt, email [email protected]. You can also schedule a Zoom call/meeting with me here.
Thought of the Month
"It does not matter how slowly you go as long as you do not stop."
– Confucius
Scott Andrews
InvestiQuant.com
CEO & Co-Founder