Hundreds of thousands of Americans trade stocks everyday. Yet, 97% of retail day-traders lose money in the markets, while large firms rake in profits with advanced technology and information advantages. That doesn’t seem fair to us. But there is nothing that we can do to change that on the broader market.
So, we created a new market to level the playing field, while addressing the root cause of why savvy traders still lose money: random price drops that can wipe out a day’s worth of earnings in just a few seconds. We are starting by testing our exchange system with digital tokens, but we hope to one day generalize the technology to create a new class of equity derivatives.
Straato is a centralized trading market for uniform digital tokens built with a new exchange system. The Straato Market is designed specifically for active trading, making it possible to develop more reliable and consistent intraday strategies, while providing the possibility of generating larger returns in shorter periods of time. Our system levels the playing field by ensuring information symmetry and creating a number of unique trading puzzles. Are you ready to join the market revolution?
We envision a market that not only engages traders individually, but also a platform to connect traders to both collaborate and compete for profits. To accomplish this goal, we need to build a vibrant community. We envision an online space for traders to discuss the Straato Market, organize group actions and strategies, and connect over shared interests. We believe that Straato has the potential to be so much more than just another trading platform. It is an exercise in the building of an entirely new digital economy, and we haven't even scratched the surface of its potential ramifications. We want to explore those possibilities with you. We can’t think of a better place to accomplish all that than on Discord. Join the community now.
The Straato Market exchange system is based on a couple of key mechanisms. Each plays a crucial role in making the market work.
Straato tokens are all uniform and only exist on the Straato Market. You can think of a token as just a unique record on a hidden ledger. The tokens are valuable only in the context of the Market’s exchange system, where the real work happens.
Straato tokens are exchanged on what we call the “offer queue” (OQ), based on a data structure called a priority queue. You can list your tokens for sale on the queue and buy other tokens from the front. Tokens on the queue are ordered by price, enforcing that the price of tokens only increases during trading.
The price of tokens obviously cannot increase forever – eventually the price will get too high and demand for tokens will vanish. We monitor market demand, calculated through 2 different statistics: 1) the “velocity of the offer queue” (QVEL) and 2) “queue growth rate” (QGR). You’ll have access to these statistics at all times. As soon as demand goes below the Market minimum threshold, the Market resets and the token price goes back down to $1.
After a market reset, trading begins again after a 5-minute pause. All owners of Straato through the Reset will likely incur unrealized losses as a result. The next cycle presents an opportunity to recoup those unrealized losses and generate profits. This cyclical process forms the basis of the Straato Market and each trading period is called a “cycle.”
Although the live Straato Market is still coming soon, we have released a paper-trading sandbox environment. The sandbox will allow you to practice trading and developing strategies on the Straato Market with no stakes. Other traders on the sandbox will include both people and bots to provide activity as we grow our trader base. The sandbox environment will also allow you to participate in live demos and earn free Straato tokens that can be traded when the real Market opens.
Got a technical issue? Want to send feedback about a beta feature? Want to learn more about Straato's system? Let us know!
In preparation for our full beta launch, we are hosting live trading sessions. We need your advice to help Straato accomplish its mission of leveling the playing field for retail day traders.
We want to share our passion for trading and discuss any questions you might have about Straato's system. Check our availability here and schedule a call with one of our founders. We can't wait to meet you!
Straato got its start from the founders’ attempts at developing a quantitative intraday equity trading strategy. After months of experimentation, some pretty crazy math and machine learning, and countless failed backtests, we realized that, in short time intervals and given market efficiency today, the task is very, very difficult, if not impossible. So, we decided to think about how we could potentially change that. We soon realized that any possible alternative would have to come in the form of an entirely new market, designed with an outside-the-box mindset. Straato was soon set into motion.
The Straato Market was born out of a year-long (and ongoing!) thought exercise as to how to design a new and better market for active traders, considering liquidity management, market efficiency, and volatility tradeoffs. The ramifications of the Straato system can be quite interesting to think about, and we invite you to join us in our pondering on the Straato community Discord.
You can make money on Straato the same way you do on the stock market: by buying low and selling high. You can, of course, also lose money by buying tokens at higher prices, holding them through the reset, and being forced to sell them for lower prices. Just like the stock market, Straato is a zero-sum game. All we can hope to provide is a new and exciting trading experience!
Just like any market, the Straato Market works best with more trading volume. Without any activity, trading would be really boring and not very profitable. Right now, we are trying to build up a user base for the sandbox environment before we release the live production Market. You can help accelerate this process by referring your friends!
Straato is not a cryptocurrency in any capacity. We do not use blockchain or any notion of decentralized finance. Instead of an “Initial Coin Offering,” where many crypto currencies are sold for real money to first adopters, we simply give Straato away for free.
There are a lot of places to go. We welcome any questions you might have regarding the exchange system or any aspect of Straato. The first and most comprehensive resource to check out is our user guides at docs.straato.com. If you can’t find the answer to your question there, we would encourage you to ask on our Discord community. Finally, feel free to reach out to Straato Support or book a meeting with a Straato team member. We’d love to talk if you just have suggestions for improvements, too!