Cooperation in developing and improving trading strategies

In today’s article, we will take a look at the possibilities of starting cooperation with our team. The point is to use a specific example to show the potential strength that cooperation offers. You might be saying, what could such cooperation possibly bring me? Read the following paragraphs.

Our activities can help active traders with demonstrable trading results (it does not mean hundreds of per cent in profit but the ability to prove they understand what they are doing) and with evident experience.

What we are offering is the development and enhancement of trading strategies – we have developers, analysts, traders, statistics. A trader who administers their own strategy focuses rather on topics of robustness, trading conditions, risks and strategy workflow more than on yields. And that is exactly where we see the greatest potential for cooperation: every trading strategy can be reinforced, alternatively enhanced by one of the following points:

• automation = workflow efficiency improvement (market scanning/seeking opportunities, backtesting, data preprocessing, execution)
• robustness (using statistics including relations between “blind spots” on equity curve and market, albeit undetectable, phenomena)
• optimisation (connecting more uncorrelated assets) in order to reduce risks/drawdowns and drawdown period

One of the real-life examples: during a recent opportunity, we met an options trader who successfully trades several of his (relatively well-known and standard) strategies. Knowing that his strategy “suffers” from certain weaknesses, he decided to start cooperation with our group in order to remove these weaknesses. Sharing experience and knowledge, both parties profited from the mutual cooperation – our team gained innovative incentives for our development which consist of a certain (different) view on a generally known trading strategy, and, at the same time, the trader received professional support in the area of automation and statistics/likelihood, which leads to increasing the performance of trading strategies. There can be a multitude of results – from automatic screener and notificator of new trading opportunities, to fully automatised trading strategies including execution, position-sizing and position management.

If you are interested in this article, be it from the point of view of a potential cooperator or client, do not hesitate to contact us with your questions, we are happy to meet you and discuss all possibilities.

Michal Dufek