Our style of trading is geared towards predicting short term price movements in scores of different trading instruments. In this environment, in order to optimize trading returns and generate alpha we will consistently strive to improve upon the following processes that are integral to our investment methodology:
The Investment Approach relies heavily on short to medium term long/short strategies that are based on complex trend seeking algorithms. These algorithms are developed using a variety of data mining methods that are internally referred to as “Logic Engines”. The search or data mining algorithms in these logic engines are based on different concepts of Artificial Intelligence (AI) and Machine Learning (ML) namely Genetic Algorithms/Neural Networks/Ada Boost/ Grid Search etc. The Investment process is based on market deployment of trading portfolios that are created using different Logic Engines which in turn are developed, tested and validated by employing cutting edge high performance computing technologies. The Logics Engines help in developing complete portfolios of diverse algorithms which then generate superior trading returns created by Artificial intelligence or by the analyst who work on the output of AI. The analyst may also write their own trading system based on different methodologies. The entire process of managing the software development life cycle, developing Risk Management Utilities and Hedging Algorithms is handled by a team of experienced Analysts, Market Specialists, Data Scientists well supported by senior external consultants with rich domain experience and belonging to the elite educational institution. We rely on our technical partners for development of AI engine software.
The R&D process is aimed towards enhancing the market returns of investing the capital into tradable instruments based on number of different trading concepts and ideas. All trading ideas developed in this process are, by design, algorithmic in nature and validated with historical back-testing and forward reporting. The R&D process is designed to generate new trading strategies that will evolve into robust quant based algorithms via a rigorous process of evaluation and validation and will facilitate our understanding of the existing market regime to align our trading constructs accordingly.
We trade in tradable instruments using numerous trading ideas while ensuring that only a limited amount of capital is vested on any single idea. It is a known possibility that majority of these trading ideas may have a large correlation on profitable and loss making days but the process of risk management is designed to contain risk as collective of the trading strategies. This provides a certain amount of diversification when invested across different tradable instruments.
# Note: The R&D work is carried out by teams from Technology/Software partners Marketopper Securities Pvt. Ltd and Alpha OpenSource that are based in India and Philippines respectively.
# Note: The R&D work is carried out by teams from Technology/Software partners Marketopper Securities Pvt. Ltd and Alpha Open Source that are based in India and Philippines respectively.
*** Disclaimer : Please note that all our trading strategies are based on historical data and their historical performance may or may not have any correlation with actual performance as the market movements and market conditions are subject to change.