Focus On Research

Research is at the core of Quantways trading methods. The company has successfully developed a quant-based proprietary methodology that is based on price action thus removing subjectivity and bias that may interfere with the investment process. The strategy aims to detect long lasting market trends that could offer the opportunity to achieve above-average performance. These trading strategies have been thoroughly tested over long periods using a broad range of markets and market conditions to verify their validity, significance, and longevity.

Combining this methodology with the benefits of diversification in global macroeconomic sectors and the use of the highly liquid futures markets enhance the overall expected results in performance.

What is Quant?

Broadly defined, Quant is the analysis of financial markets by means of math and statistical modeling.

The main  inputs are price and volume. This is in contrast to fundamental research which analyzes the forces of supply and demand (e.g. crude oil inventories, company’s balance sheet, job report).

The assumption is that the markets are efficient and that prices reflect all that the participants know about its fundamentals.

Technical Analysis

Technical analysis is a methodology of forecasting based on past market prices and volume in contrast to fundamental analysis.

The technical price theory is based on 3 assumptions:

  1. The Market discounts everything.
  1. Price moves in Trends.
  1. History tends to repeat itself.

How do we achieve above average returns?

  • Continued research to find best performing algorithms that work well over a wide range of markets in up or down trending markets (Robust).
  • Optimum leverage.
  • Reduce behavioural problems via automated risk control and production of orders to buy or sell.
  • Diversification across global macro sectors and assets.

Trend Following

  • Cut losses and let profits run.
  • Time tested (performed well over a century).
  • Works consistently well during crisis and strong lasting trends.

Key Drivers

  • Repeatable strategies – systematic.
  • A method of risk allocation.
  • Simple plans will do the job.
  • Focus on profit per transaction.

Risk Management

  • Diversification.
  • The systematic approach reduces behavioural biases by automating as much as possible the trading decisions and executions.