ALGORITHMIC TRADING S&P 500 FUTURES
Learn how to use ITG Quantum Ai for UHF trading of S&P 500 futures
Welcome to the S&P 500 Futures Testing section of our website, where we explore how different versions of our proprietary ITG Quantum AI algorithm perform on one of the world’s most liquid and widely traded futures contracts—the S&P 500 E-mini. Futures are standardized financial contracts that obligate the buyer to purchase, or the seller to sell, an asset at a predetermined price and date. Unlike stocks, futures trade nearly 24 hours a day, allowing traders around the world to respond to market events in real time. The S&P 500 E-mini futures contract (ticker: ES) tracks the performance of the S&P 500 Index—a benchmark index representing 500 of the largest publicly traded companies in the United States.
The S&P 500 stands out among U.S. indices due to its broad diversification and its role as a barometer of overall market health. While the Dow Jones Industrial Average includes just 30 blue-chip stocks, and the Nasdaq 100 is heavily weighted toward technology companies, the S&P 500 provides a more balanced view of the market by including companies across all major sectors. Compared to the more volatile Nasdaq, the S&P 500 tends to move in steadier, more predictable patterns, making it ideal for algorithmic strategies focused on high-probability trade setups. The Russell 2000, by contrast, tracks small-cap stocks and tends to experience sharper price swings and lower liquidity, making it less suitable for high-frequency automation.
Trading hours for the S&P 500 E-mini futures begin at 6:00 PM ET on Sunday and continue until 5:00 PM ET on Friday, with a one-hour break each day between 5:00 and 6:00 PM ET. This near-continuous trading schedule allows for around-the-clock opportunities and is particularly important for traders utilizing automated strategies like ITG Quantum AI. The index is fundamentally driven by corporate earnings, economic reports, interest rate expectations, geopolitical events, and investor sentiment. Because of its massive volume and tight spreads, the S&P 500 futures market offers ideal conditions for strategies that require fast execution and consistent order flow.
It’s worth noting that ITG Quantum AI was originally developed specifically for trading the S&P 500 E-mini. Its unmatched liquidity, lower volatility relative to the Nasdaq, and highly structured movement patterns make it a perfect candidate for both trend-following and high-frequency scalping strategies. In the video below, we’ll be testing version 4.01 of ITG Quantum AI using ultra-high-frequency (UHF) trading settings on a 2-tick range chart. This aggressive configuration is designed to capitalize on micro-movements in price, opening the door to dozens or even hundreds of small trades within a single trading session. This section will showcase how our AI performs under these conditions and why the S&P 500 continues to be our preferred instrument for algorithmic trading development and testing.
ITG Quantum AI is a powerful and sophisticated tool that can provide traders with a significant edge in pursuing their trading goals. However, algorithmic futures trading is not suitable for everyone. We strongly recommend thoroughly testing all strategies in a simulated environment before committing real capital. Please consult with a licensed financial advisor to ensure this approach aligns with your individual risk tolerance and financial objectives.
— Val Baur, CEO & Founder, ITG Capital Management
In our previous test of ITG Quantum AI Version 4 with Ultra High Frequency (UHF) settings, we demonstrated the algorithm’s impressive performance in the NASDAQ futures market using hyper-fast range charts. In that video, the AI generated over $28,000 in profit within just one hour of trading—an outstanding showcase of its speed and precision. In this follow-up, we shift our focus to the S&P 500 futures market, employing a similar algorithmic configuration but applying it to a more structured 5-minute chart. The goal is to simulate a trading environment suited for hedge funds and proprietary trading desks, where higher capital allocations and larger risk tolerance allow for broader scaling and profit potential. For retail traders with access to larger accounts, the same strategy can be executed with e-micro contracts using just a tenth of the risk and reward.
This test will utilize a profit target of 8 ticks—or $100 per trade—with progressive scaling enabled through Version 4’s manual scaling features. The signal engine will run on an aggressive setting, allowing the AI to autonomously determine trade direction based on real-time market dynamics. The maximum position size will be capped at 74 contracts to maintain risk discipline while allowing the system to maximize high-probability trade opportunities. Since we’re trading during regular market hours, intraday margin requirements are substantially lower—often around 10% of the full overnight margin—making this strategy more accessible to those with the appropriate account equity and margin availability.
It’s important to remember that all versions of our ITG Quantum AI are designed around the core principle of achieving five more profitable trading days than losing ones each month. With a 1:2 risk-reward ratio, that simple advantage can produce outsized returns: nearly $500,000 per month with e-mini contracts or $50,000 per month with e-micro contracts—roughly 10 times your daily risk and equivalent to 50% of your minimum trading capital. For traders who meet the minimum risk requirements and understand the importance of consistency, this strategy is a serious candidate for long-term performance and account growth.
NFA Required Risk Disclosure
The trading results shown are hypothetical and presented for educational purposes only to demonstrate one possible application of the ITG Quantum AI software. These results are not typical, and there is no guarantee that any trading account will achieve similar profits or losses.
Futures trading involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether such trading is appropriate for you in light of your financial condition, objectives, and level of experience.
Past performance, whether actual or hypothetical, is not necessarily indicative of future results. All examples are for illustrative purposes only.
ITG Quantum AI is a tool and not a promise of performance. Use of the software should always be combined with sound risk management and awareness of market volatility.
This is just a small glimpse of what’s possible with ITG Quantum AI v.203. Because all key components of the algorithm can be customized to match a trader’s risk tolerance, account size, and trading objectives, the number of potential strategies is virtually limitless trading goals, there is virtually limitless number of trading strategies it could be used with.
THIS MATERIAL DOES NOT CONSTITUTE A SOLICITATION TO ENGAGE IN ANY DERIVATIVES TRANSACTION AND SHOULD NOT BE INTERPRETED AS AN OFFER OR RECOMMENDATION TO TRADE FUTURES, OPTIONS, OR OTHER DERIVATIVE PRODUCTS.
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+ 1 (312) 718-9016
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support@itgedge.com
support@itgedge.com