ABOUT VOLCAN

Founded in 2013

2013

Volcan Software was established in 2013 by Luca Bondi and Alessandro De Pasquale. They met in Lanzarote, the island where they both live. Driven by the same interest in mathematics, financial literacy and lifelong learning, they started to develop a business project that combines sales and technology.
Later that year, they also started to deepen the topic of Expert Advisors, running some tests and simulations on their historical records. The two partners had a clear goal in mind: travel the world promoting Volcan Software’s vision, in order to generate a recurring flow of passive income.

2015

After developing our first Expert Advisors, we began to study the emotional journey of our investors. The outcome suggested that substantial capital losses — although temporary — are incompatible with Volcan Software’s vision. We knew we needed to find a way to manage that kind of loss, even though it’s an intrinsic feature of the financial market. Therefore, we spent several months evaluating all the options and talking to different experts in the field.
During this time we understood the importance of lifelong learning and we also had supportive inputs from renowned operators in the industry. They gave us some good advice on how to deal with those temporary losses from an emotional point of view, as well as to work on our transparency policy in respect of our clients.
We also changed our mind regard the nature of speculation, because we understood that it’s nothing more than a different form of entrepreneurship.

2017

In that year, some of our software started to achieve the expected performance levels. We officially started our trading business in September and ended the year with + 41.49% and + 33.97%, a promising result for a newborn business.

2018

The excellent performances of 2017 was continuing until July 26, then the ESMA regulatory changed reducing the Leverage in Europe to 1:30 and the stop-out on the broker’s operating margin to 50%.
We decided to adopt these new rules and therefore make substantial changes in our strategy. It wasn’t easy, but we kept on working and studying to align our approach to the new regulation.
From July 26th to December 31st we made a -2.22% with a 12.91% drawdown, but we didn’t give up. We managed to close the year with an extremely positive result, + 62.36% and + 69.31%.
2018 has been a difficult year for the financial sector, many players experienced losses over -20%. On the other hand, we became more conscious of our own potential.
Our founders knew that we were on the right track and decided to keep walking on the innovation path. They submitted all of our studies to a professional Risk Manager – Boris Secciani – who carried out a severe evaluation of our software in comparison to the market, in order to better understand and manage operational risks.
Boris Secciani graduated in Economics from Milan’s Politecnico and later became a certified Risk Manager. He’s also a financial journalist who writes for a trade magazine called Fondi e Sicav (www.fondiesicav.it).
The graph below illustrates Boris’ contribution to the investment risk of Volcan products compared to the main sector indices:

2019

In February 2019 we launched a second-generation software called Erupción. This allowed us to introduced some new features, including the reduction of the recovery time after a drawdown. In addition to that, we also introduced our new products called Lava, which are designed to achieve reduced performances in order to shorten by one-third the recovery time after a drawdown.
On the other hand, the performance of Erupción software proved our analysis on recovery time right. This was probably the most important news for Volcan Software, since we developed the Erupción system right after the change in the ESMA regulation. Every player in the financial field is aware that drawdowns are part of the game; the trick is to know beforehand the length of the recovery window. That’s the only way to foresee the chance of failure and manage operational risk.
In August we launched MS1, specifically designed to contain temporary losses, and a couple of new software, MS3 and MS5. That was a new dawn for us: we realized we needed to diversify risk to consolidate our company’s position in the market, so we signed quite a few contracts with Russian, Pakistani and Kazakh engineers, other than involving new partners to manage our customer service and guarantee a 24/7 software supervision.

2020

As a result of the Covid-19 pandemic, the financial market changed radically and it forced us to quickly adapt our software to the new circumstances. We then decided to finetune our strategy for the purpose of mitigating the drawdown risk. That’s how MSV software was born. This kind of investment is designed to endure catastrophes, natural disasters, lockdowns or even wars.
We officially started our sales on the 12th February 2020 with the help of more than 40 different partners.

2021

We started 2021 in difficulty, trying to avoid problems such as those encountered during the gap of 9 March 2020. We finished our studies in June 2021, achieving the following objectives:
1. we carry out very small operations to avoid sudden overnight gaps or when the market is closed;
2. we have improved market entries, no longer carrying out backtests on fictitious data, but carrying out tests based on real operations performed since 2017;
3. we have significantly lowered volatility and eliminated drawdowns with important percentages;
4. on new generation software we have managed to lower the percentage of drowdowns by 10 times compared to past years.