How Mi Ahorro controls risk

-Strength in numbers-

For any trading strategy to have long term viability, risk management is a requisite. Each has its own risk management system. Some of our robots will place one trade at a time with a fixed take profit and stop loss, other robots will use recovery techniques by scaling into positions and using a global stop loss to control all open positions as one trade. Each one of our trading techniques complement each other well as a portfolio which means that is one of our three strategies enters a period of drawdown, it is likely the other two will have success and compensate for the underperformer.


-Accepting losses when they come-

Most of the time losses will be rather small and require minimal time to recover from. Cutting your loses early is a smart way to trade, which is why we must accept that negative days and even negative months are part of successful long term investing. The key is to have more winner than losers and never to risk more than you can afford to lose.


-Open position drawdown limit-

In the case that one or more of our strategy’s experiences drawdown from open positions a equity vs balance stop loss is implemented by a robot that is constantly monitoring the open positions. If drawdown reaches 15% on our master account, all open positions are closed as a mechanism to prevent a loss greater than 15%. This mechanism is dependent on our communication with the broker (connectivity) and the brokers ability to execute the closing of the open positions when our robot sends the request to have all positions closed. This includes during the weekends when the market is closed. So, it is not a bulletproof solution to maintain all losses, under all circumstances under 15%, however should work for most situations.



While it is impossible to guarantee a maximum loss percentage, Mi Ahorro has taken appropriate steps to minimize the risk of excessive loss.



Neo, Zen and Rey; the three algorithems that power Mi Ahorro

Mi Ahorro is transforming the way we invest. This is all thanks to the advanced Fintech Mi Ahorro implements.  Here is a technical breakdown of each algorithm and how it functions.


The momentum bot

Neo is a momentum strategy, aiming to profit on large directional movements trading on a wide variety of assets, which include:


Neo exploits the economic and political differences between these currency pairs, in order to catch large macroeconomic movements in the market. Neo accomplishes this by scouting for patterns that usually present themselves in the early stages of a trend, as well as patterns that present a good opportunity by riding an existing trend. Neo performs exceptionally well when markets are in a state of panic or euphoria. Both of these conditions present excellent opportunities to bank large profits from exaggerated price movements.


The mean-reversion machine

Zen exclusively trades on the AUDNZD AUDCAD and NZDCAD currency pairs.

These currencies share similarities between each other because their economies depend heavily on demand for the commodities they produce. Commodities generally move together as a sector, which leads to a positive correlation between each of these currencies. When this positive correlation is temporarily out of balance our strategy places orders in the direction of the average or mean. This tendency gives Zen a trading edge and allows this algorithm to consistently generate a monthly profit regardless of market conditions.

Once a currency pair becomes overbought or oversold, Zen will begin to scale into a position. The size of the trade depends on the significance of the inefficiency. The larger the imbalance, the higher the probability for a retracement to the mean. All operations that are opened on a particular currency pair are treated by Zen as one large trade and will close together once the target profit is achieved.


The Royal scalper

Rey is a scalping strategy that trades the GBPCAD currency pair. Rey uses two distinct modes of operation that run in tandem at the end of the US trading session and before the Asian session begins. Rey will search for opportunities to scalp during this low volatility period when the UK and Canadian economies are less active.  Rey typically places 10-20 trades per week. Trades are usually closed within a few hours of being placed to minimize our exposure and maximize the effectiveness of both strategies.

These three strategies combine to from a powerhouse of performance with each excelling in its own unique trading environment. The result of running Neo, Zen and Rey as a portfolio is less overall risk and a smoother equity curve for more consistent monthly returns and a better overall experience for Mi Ahorro investors.


Mi Ahorro now brokering with IC Markets

Mi Ahorro is constantly trying to provide the best experience and service possible to our clients, which is why we are pleased to announce International Capital Markets as our primary broker. Clients of Mi Ahorro will directly benefit from this by enjoying excellent investment conditions, responsive customer support, top tier regulatory framework and a large selection of deposit and withdrawal methods all offered by IC Markets. Check out how to get signed up through IC Markets in the Mi Ahorro Getting Started section. It is important to keep in mind that IC Markets is not only regulated in a plethora of global jurisdictions, it also holds all client funds in segregated trust accounts with the National Bank of Australia. This gives us as financial technology providers peace of mind knowing our client’s investment are in such good hands. If you have any questions regarding IC Markets or the joining process, feel free to contact us. We are happy to assist in the onboarding process.


Mi Ahorro, a fresh Fintech company looking to take over the investment world.

2020 has been a curve ball for the entire world and the consequences of the pandemic will have long-lasting effects on many aspects of life.  We all have to make adjustments and do our best to roll with the punches this situation has thrown at us. World banks have had to take unprecedented actions to support the world economy through dropping interest rates to historic lows. Low interest rates help encourage investment however the picture is not all roses.

When a central bank drops rates to zero, your local bank won’t be able to pay you much of anything for the savings you hold with them. So, your savings will sit in a bank and slowly lose purchasing power through inflation. Central banks know this and are counting on those low yields to encourage you to seek higher returns by investing in something, anything really. They just don’t want you sitting on a pile of cash without putting it to work in the economy. Not all of us have the time or the desire to start a business with our savings. Most of us just want our money to earn a decent return with us having to spend much time fussing over it. One raising star in the Fintech world that is an attractive alternative to traditional finance is

Mi Ahorro is Spanish for “My Savings” is built to be a replacement to the antiquated savings account model most banks currently offer. The first thing that stands out about Mi Ahorro is their monthly return objective of 3.25%, which is the norm for most savings accounts for an entire year. That kind of return on investment is not what you will find in your standard savings account. With an account denominated in USD 3.25% monthly compounds out to around 40% year over year returns. So, it is safe to say thins is in no way or shape a typical savings account.

So how does this work? Mi Ahorro has a partnership with a well-known forex broker IC Markets, one of the biggest retail forex brokers in the world. Mi Ahorro clients onboard to IC Markets and then receive the technology Mi Ahorro provides in the form of trades in the forex market. So, IC Markets actually is the institution that is the custodian of your capital, not Mi Ahorro, which is probably a good thing since Mi Ahorro is a small tech company and IC Markets is an international broker with a good reputation. 

Onboard to IC Markets as a client of the broker isn’t very difficult. They just ask for proof of ID and address and your account is approved. Once your account is funded (credit card or wire is fine) you sign an agreement to receive the orders Mi Ahorro places. There is no work on your part and an investor but that does not mean it is without risks. The success of your investment will depend on how well the Mi Ahorro technology performs. Looking at their verified track record, it does appear they have had good account performance. The monthly return and relatively low drawdown are world class. Past results do not guarantee future profits, but in fairness it is a good indication.

Mi Ahorro claims only 15% of your capital is being actively traded, which basically means when you sign up for their service it is possible to lose 15% of your trading capital from one incident. This doesn’t mean you will never lose more than 15%, but it does reduce the risk and gives you some peace of mind as a client. Mi Ahorro is does not guarantee a monthly ROI of 3.25%, however it seems based on their Historical Track Record that this is a realistic objective.

Some other points worth noting; Mi Ahorro does not charge to join the service. You can leave when you want and there is no exit fee, so come and go as you please. There is no management free but there is a 35% performance fee which is built into their objective of 3.25% monthly return figure. So really, they mean to make 5% and they take their 35% cut of the profit they generate and you get the 3.25%. Mi Ahorro’s performance-based model gives clients a 65%/35% split of the monthly profits. The performance fee is taken out by the broker automatically and only assessed if you make a profit. No profit, no charge which is a fair structure for compensation.

In conclusion, Mi Ahorro is on the cutting edge of Fintech and has a structure that is safe for investors looking for alternatives. Profits are not guaranteed by Mi Ahorro, however it does seem like an attractive option and should gain market share over the coming years.



How you can use Fintech to supercharge your savings account

A few decades ago, there was little question regarding the best way to save for your future. You put your money into the bank and with the high interest rates of the past those savings would grow at a reasonable rate each year. Not many individual investors were looking for alternatives because the rate of return was reasonable at the time; however, with today’s zero to negative interest rate policies, this is no longer a viable option.

Consider that most banks offer 0.5%-3% annual percentage yield for a certificate of deposit, using a CD is not a viable option to increase your monies purchasing power for the future. Inflation will erode any interest the banks will give you in return for you lending them your savings. Going to an investment bank will yield significantly higher returns. Most mutual funds can yield anywhere from 5%-12% returns per year, however you need to be willing to ride out the ups and downs of the market.  A third option is quickly gaining adoption and is redefining what savvy investors can do with their savings. Financial Technologies or Fintech as it is commonly called, is a growing industry that is creating a plethora of new possibilities for the average investor that simply didn’t exist a decade ago.


So, what is the best option for those who want to save for the future and receive a reasonable rate of return?

Let’s explore three options from the perspective of three individuals (Banking Bill, Investing Igor and Fintech Fiona) who are actively saving for a down-payment for a home. All three will be starting with $5,000 and will have the goal of saving $30,000 over the next 5 years.


Banking Bill: Bill takes his $5,000 and decides to place his money into a CD at the bank. Bill has an uncle that works at the local bank and his uncle was able to help Bill get the best available rate for the following five years. Bill’s certificate of deposit sits for the next 5 years, growing at 3% APY, which is more than most CD’s yield. Once the CD matured Bill saw that his savings was now $5,796. So, in 5 years his savings has grown by $796. Unfortunately for Bill, not only is this not even close to the $30,000 he needed for his down payment, the housing market appreciated in value since he made his original deposit and he now needs $35,000 for a down-payment on a home. Bill was a little confused and disappointed with his situation. He did exactly what many others had done in the past, however because to the historically low interest rates, he was now further away from his goal than when he started 5 years ago. Clearly the model for holding money in the bank and expecting a reasonable return is broken.

Let’s see if Igor fared better.

Investing Igor: Knowing the banks don’t pay enough interest to preserve your purchasing power, Igor decided investing with a wealth management company was the best option for his savings. He looked online and found a company with a good track record and opened up an account. He knows the market can be volatile in the short term, but also knows the stock market is one of the best investments over time and is confident his $5,000 is much better off invested in the market’s vs placed in a bank. Having his savings actively managed in the markets also allows his account to compound over time, which greatly accelerates the growth of his investment. 5 years later when Igor looked at his financial statement, he is pleased to see his original $5,000 is now worth $7,013! Igor was able to make 7% returns after fees per year and his investment was able to compound, earning him even an attractive return, however even though Igor’s $5,000 had grown each year and compounded to a $2,012.76 profit, he was still far away from his dream of buying a home. In fact, since the housing market had outperformed the stock markets since he invested, he was actually further from his goal of buying a home even with his $7,012 in hand. His investment banking account ended up being a mixed experience.


Now how about Fiona’s Fintech investment?

Fintech Fiona: Fiona knew that giving her money to a bank wouldn’t be much better than putting her savings under her mattress at home and that wealth management companies are a good model for higher returns, but not the best option for her plans to buy a home. In this digital age there are some investment options that can yield much higher monthly returns so Fiona decides to take the initiative to do a little research. She came across a Fintech company Mi Ahorro yields an average return of 3.25% net per month. She did some digging into how Mi Ahorro works and decided it was the best option for her. After 5 years of compounding, Fiona’s investment account had grown to a whopping $34,070, completely exceeding her savings goal of $30,000. How was this possible? By compounding her monthly returns, Fiona’s investment grew at a much higher rate than Bill and Igor’s account. Fiona’s investment grew 3.75% per month and after 60 months of compounded growth, she had more than enough to make the down-payment on her dream home and have over $4,000 left over in her Mi Ahorro account.

As you can see by the three very distinct experiences, having an intelligent and thoughtful plan from the beginning was key to her success. Doing what has worked for others in the past did not equate to success in today’s investment climate. Our job as informed investors are to make sure we stay current and evolve with the times or we will be left behind. 

The legacy investment banking model is becoming increasing outdated and less competitive with newer forms of investment. With the Financial Technology model, more of the return on investment is going directly to the investor and less to pay for all the expensive and unnecessary overhead of large banks and financial institutions. Mi Ahorro’s business model has a client first approach that yields significantly higher returns than other investment options all while having the security of brokering with one of the most trusted and well-regulated brokers in the world (IC Markets). If you have an investment goal and would like some help planning on how to make your goals a reality, visit the Mi Ahorro website for more details about how Fintech can power your investment into the future.