FVP Trade’s Quantum Evolution
2021 was a challenging year for the world’s markets, with the resurgence of COVID-19 and widespread geopolitical uncertainty creating high levels of volatility. FVP Trade successfully navigated this complex environment, largely thanks to the contributions of their technological partner, Qfinity Labs.
Qfinity Labs’ researchers spent many years creating a functional algorithm which could combine the theory of Monte Carlo Simulation with the ultra-high speed capabilities of a quantum computer. Monte Carlo simulations are generally used to model the probability of different outcomes within a process which can be difficult to predict due to the impact of random variables. In our case, these random variables include factors such as fundamental news, cyclical data releases and major world events.
After many years of testing, our algorithms are now viable to be used in real-time trading as we seek to gain an edge over competitors. By evaluating potential risks from fluctuating market conditions, and simulating future price patterns, we have experienced great success in our pursuit of elevated levels of accuracy in predicting market movements across a variety of different financial instruments.
FVP Trade applied these algorithms across multiple financial markets and achieved great results with our Quantum Algo (QA) series of algorithms, as explained by Dr. David Moche, CEO of Qfinity Labs.
“Our QA series of algorithms leverages simulated data from various types of market conditions to select the best placement and execution strategies to maximise returns. It then used reinforcement learning, a subset of machine learning, to assess the performance and utilise neural networks to consistently learn and refine its performance.”
There are 3 funds currently using this algorithm to generate profits for investors, namely F1, F2 and F3. The funds’ investment objectives are to achieve long term stable returns by investing across multiple asset classes for optimal portfolio diversification. The F1 fund operates with the lowest level of risk, and focuses solely on trading forex pairs and gold. The F2 fund operates with a medium level of risk and trades multiple stock indices and energy CFDs, along with forex pairs and gold. The F3 fund operates with the highest level of risk, trading with treasury notes, commodities and the VIX, in addition to the options traded in F2.
The chart below shows the monthly performance of each fund throughout 2021.
Overall, each of the funds made great returns for our investors in 2021. With the professionalism of the core team at Qfinity Labs, we expect 2022 to be another highly successful year performance wise. (Past performance is not indicative of future performances.)
Going into 2022, Qfinity Labs have unveiled plans to upgrade and integrate its next generation quantum computer system. This upgrade will increase the processing power from 12 to 30 qubits. When comparing the latest computers, the 30 qubits speed is 1.7 times faster than the previous generation of quantum computers. As Dr. Moche explains, this system upgrade has huge potential for FVP Trade and its clients.
“The increase in processing power combined with more customer data gathered over the past 2 years will enable our algorithms to perform even better and customers can look forward to at least a 10% increase in returns next year easily.”
When asked about his plans for the company for 2022 and beyond, Dr. Moche went on to reveal:
“In just one generation of hardware upgrades, we were able to increase our number of qubits from 12 to 30, which included an improvement in the fidelity required to utilise all 30 qubits. We have the ambition to double our qubit capabilities every two years. Our researchers are already working on the next two generations of hardware, with the goal of being a leader in this field.”
In addition to the QuantumAlgo trading algorithms, Qfinity Labs are also working towards utilising their super-high speed quantum processor for use with cloud computing. There is huge potential for growth within the cloud-based quantum services sector. The complexity and challenges of quantum computing meant that leading tech companies are fighting to hold an early quantum advantage, building a quantum ecosystem and having a team of skilled software engineers to compete in this industry. There is a widespread skilled labour shortage across the industry, with defence, finance, and pharmaceutical firms fighting to recruit qualified quantum experts to improve the quantum capabilities of their firm.
Another area where Qfinity have looked to implement their technology is in security. The use of quantum computers can massively upgrade encryption levels to mitigate the potential risk of huge data breaches in the future.
In conclusion, there is a bright future ahead for quantum computing, FVP Trade and the overall economy. With global Covid restrictions easing, it is expected that the economy will continue to recover well after 2 years of pandemic restrictions, and the financial markets will likely achieve new heights in 2022.
About FVP Trade
FVP Trade is an award-winning online global forex and CFD broker, known for delivering exceptional execution, client service, and customer service around the world. FVP Trade is regulated by the Financial Conduct Authority (FCA), and the Australian Securities & Investments Commission (ASIC).
Dr David Moche, Chief Executive Officer, Qfinity Labs
Dr David Moche is the Chief Executive Officer at Qfinity Labs and Head of Quantum Computing Research for FVP Trade.