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Proven Quant Trading Edge

TRADING WITH A STATISTICAL EDGE

 

A successful trader starts with having an edge in the markets. This is far more important when you will be doing 1000s of trades per year and particularly if you are day trading.

Futures trading systems edge

So What Is An Edge?

A  daytrading edge is simply a statistical probability that your trade has an higher expected probability of working.
Your entry has predictive power of future price direction - be it in short term or longer term:

  • A real edge must be quantified, it must have statistical data to prove that it has ability to capture profits well beyond normal. The data must also quantify risk so traders know the optimal amount of capital to put towards a system.
  • Your system has an edge on speed, no human can compete with the speed or decision making of a computer.
  • Your quant trading strategies have a proven edge over numerous futures and commodity markets. Your systems predict future outcomes of trend, consolidation or volatile market environments - in each scenario we have higher probability of producing profitable trades.
  • Your automated trading software will monitor thousands of variables and model the data and then have the
    ability to profit when a certain set of conditions are present.
  • On each trade you will quantify your risk; this does not mean setting static stops like retail traders.
  • Algo trades have dynamic exits which monitor market data & calculate precisely when odds of a reversal or price going further in your favour has decreased. Algo trading always exit trades at optimal probability of success.
  • The algo trading is daytrading only, which means the system will have 100s of trades per year. Markets have
    negative normal distribution due to transaction costs, so a system must have an edge far greater than 0 to
    succeed. Your strategies have pre-determined odds of success; its statistically improbable for your strategy to
    be luck based. Fund managers or long term trend following systems are often luck based,
    they might have10 trades per year which means statistically any results are insignificant.
  • A real edge also translates to smooth equity curves this means your quant trading strategies are not
    just based around 1 or 2 big winner (statistical outliers). All your systems are consistently profitable every year.

Every-time we place a trade we have probability of success; we know the exact risk exposure and we know that each trade will be executed flawlessly and instantly.  Most traders are simply punters whereas we trade only with the odds predetermined and in your favour.

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