Welcome to Straato.
Whether you are a day trader, a quant, a student, or just someone interested in trading, we are excited you’re here! And, whether you have already tried trading in our new market or not, you may be curious about how the Straato system works.
Well, good news. You’ve found the right place to start learning about Straato.
These docs are our user guides, meant as a resource for traders on the Straato Market. You don’t have to read these docs, but we think they'll be helpful to your trading or even just navigating the Straato dashboard.
Straato’s system can get complicated, and, since transparency is one of our top priorities, we wanted to lay out all relevant market details here, for your reference. But if you just want to trade (after all, isn’t that why you’re here?), we tried our best to include brief summaries at the top of each page. These summaries should still equip you with the necessary knowledge to trade responsibly.
Let’s get into it.
What is the Straato Market?
Straato is a new trading market designed to level the playing field for active traders by eliminating random market noise. We want to democratize profits through an interdisciplinary approach toward re-designing market systems.
That’s a lot to take in. All you really need to worry about, on a high level, are these three points:
1. The Straato Market is a new trading market designed for active traders.
2. You can only access the Straato Market on our web-based platform at straato.com.
3. For now, the Straato Market is exclusively for trading our own digital assets called Straato, which only exist inside our market. You can purchase and exchange Straato with the goal of generating returns. Why should I trade on the Straato Market? The Straato Market presents 3 unique “value propositions” for traders.
Eliminating Noise – “Volatility Encapsulation”
In the stock market, small and arbitrary changes in supply and demand affect prices directly. Your seemingly logical trade might turn into a huge loss if some hedge fund decides to offload a ten-year position in the stock that day. Unpredictable, random events like this have the capacity to ruin entire days of trading. Short-term (i.e. less than 1 minute) volatility is also often impossible to predict and capitalize on, instead disrupting many active trading strategies. This volatility also makes developing profitable algorithms based on conventional technical analysis effectively impossible.
In the Straato market, only significant changes to supply and demand affect the direction of price movement – price is insulated behind another statistic, measuring supply/demand directly. This is our first primary value proposition – reducing market noise. We call this process “negative volatility encapsulation,” with the goal being to allow traders to generate more consistent and predictable returns. The Straato Market does not reduce net price movement, necessary for generating returns, but simply condenses volatility in a way that makes it more possible to capitalize on. With this in mind, the Straato Market may provide some opportunity to generate faster returns.
Leveling the Playing Field – The Ultimate Strategy Economy
Our second primary value proposition is eliminating so-called information asymmetry and leveling the playing field for active traders. In the stock market, large players often achieve alpha with information and resources inaccessible to retail traders. These firms may spend millions, even billions of dollars building trading infrastructure, collecting data, and cultivating relationships. They can call up CEOs at will and have greater access to companies, because they are themselves price-movers. In the Straato market, we strive for complete information symmetry and transparency, so only active trading can move the needle – all trade data, market parameters, and market function information are public. We believe that, by leveling the playing field in this capacity, we can contribute to building a fundamentally more fair and strategic trading market, especially in the context of reduced noise. We hope to provide a platform where traders can compete head-to-head, with nothing but strategy determining profits.
Community
A lot of active traders trade for fun, challenge, a love of solving puzzles, or even for social reasons. The Straato Market also hopes to emphasize these intangibles that make active trading worthwhile to so many thousands of people. First, we hope to start a vibrant community on Discord, where traders can discuss strategies, socialize, and collaborate to move the Market. The Straato Market also incorporates a number of unique puzzle-like elements built into the trading experience that are critical to the Market’s function. For example, Market restimulation is largely dependent on a supply-side prisoners’ dilemma. Straato is meant to be fun, exciting, and intellectually interesting for those seeking to think about markets and trading on both a practical and theoretical level.
Where are we going with this?
You probably saw this coming, but Straato’s system is not limited to just basic digital tokens. In fact, we designed the Straato Market to eventually trade equities. We want to build the next equity derivative that will offer retail day traders and institutional investors alike the opportunity to shield themselves from short-term unrealized losses. However, in the meantime, we are hoping to lay the groundwork for an innovative and fun digital trading platform dedicated to making active trading more strategic, accessible, and democratic. Will you join us?