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Algo trade systems.com summary business plan (2)
Algo trade systems.com summary business plan (2)
Algo trade systems.com summary business plan (2)
Algo trade systems.com summary business plan (2)
Algo trade systems.com summary business plan (2)
Algo trade systems.com summary business plan (2)
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Algo trade systems.com summary business plan (2)

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http://quantlabs.net/labs/quant-books/doc_download/825-algotradesystemcom-business-plan …

http://quantlabs.net/labs/quant-books/doc_download/825-algotradesystemcom-business-plan
AlgoTradeSystems.com aims to change the way individual retail traders participate in the High-Frequency-Trading (HFT) field as well as improve their comparative disadvantage as opposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com will provide a variety of in-house trading strategies and techniques in any possible liquid security thus improving HFT portfolios performance subject to the risk/return profile of each particular investor. AlgoTradeSystems.com will also offer online access to quantitative tools and complete black-box systems concerning efficient risk management, optimization procedures, data mining, sentiment analysis and plausible forecasts on the back of a continuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.com will administrate investment forums and chat rooms on relevant topics of interest as well as provide educational material including tutorials, books and papers for a better understanding of the HFT business. All the services before mentioned will be available for purchase through safe online payment routes that will allow the company to generate profit based on its growing community.

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  • 1. AlgoTradeSystems.com Business Plan Executive SummaryAlgoTradeSystems.com is an internet-based high-end platform connecting its own advancedquantitative trading expertise with the fast-growing retail trading community dealing withany possible combination of asset classes, frequencies and risk/return profiles.AlgoTradeSystems.com aims to change the way individual retail traders participate in theHigh-Frequency-Trading (HFT) field as well as improve their comparative disadvantage asopposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com willprovide a variety of in-house trading strategies and techniques in any possible liquid securitythus improving HFT portfolios performance subject to the risk/return profile of eachparticular investor. AlgoTradeSystems.com will also offer online access to quantitative toolsand complete black-box systems concerning efficient risk management, optimizationprocedures, data mining, sentiment analysis and plausible forecasts on the back of acontinuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.comwill administrate investment forums and chat rooms on relevant topics of interest as well asprovide educational material including tutorials, books and papers for a betterunderstanding of the HFT business. All the services before mentioned will be available forpurchase through safe online payment routes that will allow the company to generate profitbased on its growing community.Algorithmic and High-Frequency-Trading have both met an impressively rapid growth in thelatest years because they provide a scope for greater performance scores than any otherclassic trading rationale. They eliminate overnight market risk, better benefit frominstantaneous market liquidity imbalances and short-term inefficiencies as well as exploitthe potential of leverage across asset classes simultaneously. The proportion of equityorders volume done by HFT accounts in the total trading volume in the US and Europe equitymarkets has been impressively rising since early 2000 and now accounts for more than 50%across active exchanges. The number of major financial institutions investing in HFTtechnology and talent is remarkably growing as well with major players being RenaissanceTechnologies, Getco LLC and Citadel LLC whereas the legal and regulatory environment isbeing increasingly refined in order to avoid any potential adverse market impacts.
  • 2. 1.1 MissionIt is AlgoTradeSystems.coms mission to provide retail individual traders with the mostcomprehensive Web-based HFT interface available. The platform will be constantly updatedand modified according to the retail HFT community’s needs and suggestions in addition toits own developers’ ideas and breakthrough concepts. AlgoTradeSystems.com is committedto offer first-class expertise, first-class quality, first class service and first-class companyimage while making a fair profit for its employees and investors. With a solid long-term viewabout the company’s growth over time along with the confidence on its personnel’sexperience and competence, AlgoTradeSystems.com is ready to professionally face anyupcoming challenges in this swiftly expanding business.Initial seed capital for AlgoTradeSystems.com is required in order to account for the set-upand maintenance of both hardware and software requirements, the initial marketing costs,management fees and legal-related costs. AlgoTradeSystems.com will require heavy first andsecond round funding in order to robustly develop and efficiently market the Web Site’spotentials.1.2 Keys to SuccessTo succeed in this business AlgoTradeSystems.com must:  Differentiate the Web-based HFT interface from all others with similar services and products  Provide robust and steady returns over time on the structured quantitative portfolios  Provide easy access and user friendliness concerning the first-class quantitative packages structured by the development team  Create a significant and flexible community of individual retail traders that will be the grounding of a long-term relationship between the company and the public  Effectively communicate the wide variety of AlgoTradeSystems.com’s quantitative tools and services to non-professional traders willing to participate in the HFT industry
  • 3. 1.3 Strategic AdvantageMain Competitive Advantages of AlgoTradeSystems.com as per below:  Trading Activity across liquid assets (not just FX or Equities)  Structuring portfolios out of efficient strategies adjustable to all combinations of risk/return profiles  Highly skilled and experienced quant team for the main product development  Extensive technological knowledge in the fields of cloud computing and software development  HFT Trading system already developed and modified in Matlab and C++ programming environments thus ready for incorporation into the main business servers concerning publicly available quantitative tools packages and data sharing  Experienced strategic partners with backgrounds in the technology, consulting and securities industries1.4 Objectives  Alpha and Beta testing of Web-based platform, January 15, Year 1 and May 15, Year 1 respectively  Complete negotiations with brokerage firms for initial deployment of trading platform by June 1, Year 1  Secure First-Round Funding by June, Year 1  Web-site available to public beginning June 1, Year 1 (without online trading)  Online trading and quantitative tools available on the Web-site, beginning September 1, Year 1  Sign up 100 members and 3 brokerages by Q4, Year 1, and another 150 members by Q4, Year 2  Achieve revenues of $100K by year end, Year 1, and another $150K by year end, Year 2
  • 4. 1. 60% of shared trading activity (Trading Strategies) 2. 20% of Brokerages’ Commissions 3. 20% of Quantitative Packages Renting  AlgoTradeSystems.com international public company by year-end, Year 3 1.5 Funding StructureStart-up RequirementsStart-up Expenses (For Two years of Business)Legal $25,000Stationery etc. $2,000Brochures $1,000Consultants $10,000Insurance $2,000Research and development $500,000Expensed equipment $25,000Total Start-up Expenses $565,000Start-up Assets (For Two years of Business)Cash Required $100,000Other Current Assets $0Long-term Assets $50,000
  • 5. Total Start-Up Assets $150,000Start-up FundingTotal Start-up Expenses to Fund $565,000Total Start-up Assets to Fund $150,000Total Start-Up Funding $715,000AssetsNon-cash Assets from Start-up $50,000Cash Requirements from Start-up $100,000Additional Cash Raised $0Cash Balance on Starting Date $100,000Total Assets $150,000Liabilities and CapitalLiabilitiesCurrent Borrowing $0Long-term Liabilities $0Accounts Payable (Outstanding Bills) $0Other Current Liabilities (interest-free) $0Total Liabilities $0
  • 6. CapitalPlanned InvestmentPackages of $20 K per InvestorTotal Planned Equity Investment $715,000Revenues $250,000 ($100,000 - year1 + $150,000 – year2)(Start-up Expenses) ($565,000)Depreciation of fixed Assets ($40,000) = ($50,000 - $5,000 - $5,000)P&L for the two years $360,000

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