About Swarm

Swarm Intelligence

 

The collective behaviour of decentralized, self-organized systems, natural or artificial. SI systems are typically made up of a population of simple agents interacting locally with one another and with their environment. The resulting effect is that the ‘colony’ exhibits substantially more complex intelligent behaviour than the individual agents are capable of. Examples: ants building structures, birds flocking for protection, bees searching for new hive locations. SI is a sub-group of AI.

 

Principles of Swarm Intelligence

Made up of sufficient agents to generate effect

Communication between agents must be efficient

Agents must behave consistently and interchangeably

Agents must be simple and  have ‘limited scope’

Agents exhibit simple behaviour and are driven by limited rules

No individual agent or group of agents controls the colony

Agent behavioural rules must drive to keep the colony together

The colony has no memory of individual agents

Power of swarm

In a 16 agent colony there are 16 individuals but 65534 connections of agents.

The ant is the equivalent of a single neuron in a brain.

By itself, or even with millions of unconnected individual ants, it cannot achieve much. But if the agents are connected to form a Swarm, the number of connections is orders of magnitude larger than the number of individuals. The colony becomes a brain because of the huge number of connections.

That is why an ant colony is so much more intelligent than an ant.

Swarm XVI™ - The Basics

Systematic Trading Software

Minimal curve fitting.

Parameters set in advance, as far as possible.

Long backtest, with 50% as ‘blind’ test.

Slow trading and sampling. Reduces costs.

Liquid markets – increased capacity and reduced slippage.

As many agents as is feasible. (Practical considerations).

Extract the small amount of information available efficiently.

Apply Swarm Intelligence.

Use multi-level Risk Management.

Swarm XVI™ – The Parameters

Risk Management

1

Level 1
The program has a ‘fast’ internal volatility tracker that normalises the risk for each of the markets. This has the effect of reducing risk if one or more markets increases in volatility. It is a basic VaR modulator. This is re-calculated weekly, to reduce constant adjustments.

2

Level 2
There is a systematic RM overlay that tracks the output across the combined portfolio. It does this over twenty-two time frames. There are automatic de-gear levels if the program reaches pre-set boundary levels. This is calculated daily after close.

3

Level 3
There is a discretionary intra-day procedure. Selected risk managers monitor the performance on a live ‘tick-by tick’ basis and they watch world events. They have the authority to reduce risk at any point, under any circumstances. The purpose is to protect the equity, where there is a significant increase in risk or a new situation that the program may not have encountered before.

4

Level 4
Break Stops @ 7.5% daily and @ 20% of AUM peak-to-trough monthly drawdown. If triggered all positions are closed and client notified and a report made on losses. Permission is then required to re-open.

About Us

Swarm Technology™ has developed a way to harness the natural power of Swarm Intelligence to extract information more efficiently than traditional systematic methods. This is embedded in the Swarm Matrix™ trading program

This communication is for information purposes only and is not intended to be viewed as independent investment research. It is not an invitation to buy or sell any of the securities/strategy referred to in the document and is not a personal recommendation or advice on investments, taxation or on any other matter. This communication has been prepared by Swarm Technology™ which is a trading name of Privium Fund Management (UK) Limited (“Privium”) and used under licence from Sintrad Limited. Privium is authorised and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom. It is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. The strategy is only available to Professional Clients or Eligible Counterparties as defined by the FCA, and in compliance with local law. This communication is not intended for distribution in the United States (“US”) or for the account of US persons, as defined in the Securities Act of 1933, as amended, except to persons who are “Accredited Investors”, as defined in that Act and “Qualified Purchasers” as defined in the Investment Company Act of 1940, as amended. It is not intended for distribution to Retail Clients. We believe the information in the document is based on reliable sources, but its accuracy cannot be guaranteed. The views expressed are the views of Privium at the time of publication and may change. Where this document contains “forward-looking” information, including estimates, projections and subjective judgement and analysis, no representation is made as to their accuracy or that these projections will be realised. Privium is not liable for any losses relating to the accuracy, completeness or use of information in this communication, including any consequential loss. This document is confidential and is intended only for the recipient’s own internal use and under no circumstances may a copy be shown, made, transmitted, or otherwise given to any person other than the initial recipient without the prior written consent of Swarm Technology™. Where comparisons are made to an index, this is for information only and should not be interpreted to mean that there is a correlation between the portfolio and the index. We do not control and are not responsible for third-party websites. Past performance does not predict future results and the capital value of the investments and the income generated can fluctuate. Where investments are exposed to currencies other than the base currency of the account, they may be subject to foreign exchange rate fluctuations. Your capital is at risk. The registered office of Privium is The Shard, 24th Floor, 32 London Bridge Street, London, SE1 9SG. The historic live data has been provided by Shirlock Holdings Limited, a family office vehicle registered In Cyprus. From March 2022 we are reporting figures that have been audited and compiled by a 3rd party expert firm directly from broker statements. Copyright©2022, Privium Fund Management (UK) Limited. All rights reserved.

Disclaimer

This communication is for information purposes only and is not intended to be viewed as independent investment research. It is not an invitation to buy or sell any of the securities/strategy referred to in the document and is not a personal recommendation or advice on investments, taxation or on any other matter. This communication has been prepared by Swarm Technology™ which is a trading name of Privium Fund Management (UK) Limited (“Privium”) and used under licence from Sintrad Limited. Privium is authorised and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom. It is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. The strategy is only available to Professional Clients or Eligible Counterparties as defined by the FCA, and in compliance with local law. This communication is not intended for distribution in the United States (“US”) or for the account of US persons, as defined in the Securities Act of 1933, as amended, except to persons who are “Accredited Investors”, as defined in that Act and “Qualified Purchasers” as defined in the Investment Company Act of 1940, as amended. It is not intended for distribution to Retail Clients. We believe the information in the document is based on reliable sources, but its accuracy cannot be guaranteed. The views expressed are the views of Privium at the time of publication and may change. Where this document contains “forward-looking” information, including estimates, projections and subjective judgement and analysis, no representation is made as to their accuracy or that these projections will be realised. Privium is not liable for any losses relating to the accuracy, completeness or use of information in this communication, including any consequential loss. This document is confidential and is intended only for the recipient’s own internal use and under no circumstances may a copy be shown, made, transmitted, or otherwise given to any person other than the initial recipient without the prior written consent of Swarm Technology™. Where comparisons are made to an index, this is for information only and should not be interpreted to mean that there is a correlation between the portfolio and the index. We do not control and are not responsible for third-party websites. Past performance does not predict future results and the capital value of the investments and the income generated can fluctuate. Where investments are exposed to currencies other than the base currency of the account, they may be subject to foreign exchange rate fluctuations. Your capital is at risk. The registered office of Privium is The Shard, 24th Floor, 32 London Bridge Street, London, SE1 9SG. The historic live data has been provided by Shirlock Holdings Limited, a family office vehicle registered In Cyprus. From March 2022 we are reporting figures that have been audited and compiled by a 3rd party expert firm directly from broker statements. Copyright©2022, Privium Fund Management (UK) Limited. All rights reserved.