There is a slight risk that if our servers go down, if they’re hacked, physically damaged by storms, or simply prevented from working the way they should, it could cause our trading systems to stop running.
While it’s impossible to remove this risk entirely with any one server, we do diversify our risk by running multiple servers in multiple locations around the world. This means if one server goes, it has the potential to affect only a small portion of the accounts we run, and there are multiple redundancy servers as backups. We also take backups regularly so that if in worst case we lose a server, we can be up and running again very quickly with minimal to zero loss.
47% of data breaches and cyber attacks are caused by a human error, 25% from business process. We take this part of our business very seriously. We encrypt all our servers; we use military grade password management software; we ensure that access to sensitive information is on a need to know basis for all employees. No single employee has access to all of the passwords or technology. All employees get trained on the latest practices. In other words, we follow industry best practices for cybersecurity.
What if the trading bot makes a mistake and loses?
Our trading algorithms are designed based on the way that humans trade, except they have one big advantage. They don’t have emotions which cause poor judgment. Once they’re designed, coded, tested, they are more systematic in how they place and handle trades. We have multiple levels of safeties. We have algorithms that place the trades and manage the trades. These have inbuilt safeties and securities. We also have completely independent algorithms that just monitor the accounts’ risk and ensure that the trading bots are doing what they should be doing.
If in the event something out of the ordinary happens, the second level algorithms kick in, take over and manage the account. We also don’t just let the trading bots run. They’re always supervised by humans, and there are a number of different alerts and redundancies in place in case something is out of order.