The main criteria hedge funds apply when picking an algorithm are performance and a broad range of liquidity
Toronto, Canada (PRWEB) December 30, 2011
TradingSystems.ca actively promotes new proprietary systems / models that perform well in large capacities.
Many of the algorithms currently being used by Hedge Funds are considered first generation and may be nearing the end of their run. Investors are constantly looking at next generation algorithms that are more sophisticated and capable of actually adapting to changing market spikes while seeking out liquidity. New algorithms are of particular interest to buy-side prop traders as the methods of trading and locating liquidity become more challenging.
Sophisticated non-discretionary PMs (Portfolio Managers) have long realized that one of the enablers to a successful alpha discovery program is tied to diversification, in other words allocating capital to multiple non-correlated profitable models. Positive alpha generation means that the manager created a portfolio that returned more than one would expect for its riskiness.
About TradingSystems.ca's model distribution service:
The service is meant to help IP owners unlock their model’s potential by presenting it to the right audience for optimum results, it includes:
- Model Valuation / Fitness test (Trade results analysis / Performance Analytics);
- Secure model packaging to most institutional platforms (we are vendor agnostic);
- Professional representation that is expected for a favorable outcome;
Investors vary from private equity family offices to large global funds who are members of the Automated Trading Strategies LinkedIn Group (TradingSystems.ca's online community of 27,000+ quantitative modelers, many of which are buy-side prop traders).
The model marketing team is headed by Doron Whitman, an expert at on-boarding systems with portfolio managers around the globe who have come to expect certain benchmarks known to the team.
A strategy's investment worthiness begins with studying the individual merits of each candidate system by evaluating its suitability in terms of liquidity, length of operation, volatility, risk control and performance based on conventional correlation. Our fundamental performance benchmarks are usually measured by a Sharpe ratio >1.8 with an annualized ROR of >12%.
Interested parties seeking funding are invited to request a free model evaluation form through the company's website. Successful candidates can expect to attain maximum exposure at record time to market.