ALGORITHMIC TRADING &  MANAGED ACCOUNTS       Core Offerings          CONFIDENTIAL
Executive Summary • About Us Prophecis is a Specialist Company which provides algorithmic trading services to over 20 hedg...
Algorithmic Trading & Systematic Trading Portfolio A Trading System refers to a single or a set of algorithms combined tog...
Our Approach • Trade Systematically We use automatic trading systems which have proven statistical significance on markets...
Concept Illustration : Diversification                                                                                    ...
Systematic Managed Accounts A Systematic Managed Account is a multi-strategy and multi-asset trading account funded by the...
About the company Prophecis is an outsourcing company providing customized development of algorithmic trading solutions, t...
Contact Us             Prophecis Analytics and Consulting Private Limited                910, 9th Floor, DMall, Netaji Sub...
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Prophecis Analytics

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Prophecis is having an offshore research unit to develop and program trading strategies in Trade station, carry out backtesting, take lead in researching risk management strategies and plateform and provide IT support for execution of trading strtegies. We act as an offshore research unit, based in India, The unit cost reduced by 5 times considering lower costs of resources and IT infrastructure in India.

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Prophecis Analytics

  1. 1. ALGORITHMIC TRADING & MANAGED ACCOUNTS Core Offerings CONFIDENTIAL
  2. 2. Executive Summary • About Us Prophecis is a Specialist Company which provides algorithmic trading services to over 20 hedge funds, proprietary trading houses and advanced traders in US and European markets. We are experts in data mining, machine learning and quantitative analytics. • What We Do We provide our clients with means to generate profits from financial markets by mechanical/systematic trading. • How Do We Do It A.) We provide you with a managed account service where we utilize completely automated trading strategies and systematic portfolio management. B.) We provide tools and research to augment your existing trading operations & research CONFIDENTIAL
  3. 3. Algorithmic Trading & Systematic Trading Portfolio A Trading System refers to a single or a set of algorithms combined together to analyse market data and thereby generate a trading decision. Throughout the document, the term trading system could mean either a single logic model/algorithm or a combination of such being applied on to a certain exchange traded instrument/underlying. Risk Management in the current context refers to the aspect of trading systems when they are making losses. The objective is to quantify how much could be lost and control the losses. Thus, risk management outlines the rules of conduct for the portfolio manager and the trading system during an unfavorable time in the market. Money Management refers to the rules of investment allocation to various different trading systems. Money management is essentially the strategy of controlling and timing the exposure Systematic Portfolio Management refers to the task of allocation of investment across trading systems and also to efficiently choose the best performers via predefined rules and metrics. CONFIDENTIAL
  4. 4. Our Approach • Trade Systematically We use automatic trading systems which have proven statistical significance on markets. This method of trading ensures maximum discipline and control. The algorithms are the essence of experienced traders by converting their edges to rule based trading. • Diversify the Trading Strategies Diversifying in terms of assets is losing its sheen as globalization takes over. A better option now is to diversify in terms of trading strategies. We mix different strategies and instruments to generate a resilient portfolio. • Be Opportunistic and Predictive We identify “cause” and “effect” patterns from data and use them extensively to get a head start in any trend. The approach is to mix data mining with trader experience for predicting moves in next few days. • Manage Risks We believe in transitory nature of everything, thus there is always a strategy to handle unexpected events. Our risk management methods are adaptive and highly pro-active. We have a unique methodology called algoCheck which allows us to avoid curve fitting and constructing an over fitted system by means of 100s of stress tests. CONFIDENTIAL
  5. 5. Concept Illustration : Diversification Frequency Long Term Medium Term Stocks Exchange Traded Funds Futures Short Term Sector Sector Underlying Asset Class Very High Frequency Basic Materials Financial Services Soft Commodities Technology Health / Biotechnology Metals Utilities Natural Resources Energies Financial Real Estate Fixed Income Technical Analysis Science / Technology Forex Advanced Methods Healthcare Fundamental Analysis Stock Trend Follower Conglomerates Specialty / Miscell Fundamental Models Cycle Detection Indices OscillatorConsumer Goods Telecommunication Pattern Matching Contrarian Probability Models Industrial Goods Utility Adaptive Hybrids Scalper Stochastic Models Breakouts Misc Pricing Models Self Learning - AI Asset Class Waves Forex US Equity Non US Equity Fixed Income Commodity Risk Management Money Management Tradable Instrument Risk Profile Trading Strategies Risk Strategy Combining diversification effects of uncorrelated markets and strategies CONFIDENTIAL
  6. 6. Systematic Managed Accounts A Systematic Managed Account is a multi-strategy and multi-asset trading account funded by the investor, and traded by our trading algorithms. This allows the investor a reasonable and controlled rate of return on an account he/she does not necessarily have to trade himself. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders),our systematic managed accounts are mechanical, fully automated, with no personal bias involved and adjustable to risk profiles. We offer managed accounts over US ETFs, US Stock Index Futures, US Commodity Futures, Indian Stocks and Indian Stock Futures. There are some pre packaged programs which clients can use rightaway (see Appendices) Benefits • Expert management: Quantitative Algorithms run and trade your portfolio • Tax management: Direct ownership of your holdings lets you address specific tax situations, such as harvesting capital gains or losses. • Scalability of Operation • Ongoing relationship: Work with us to develop your investment plan and periodically review your account and performance reports. CONFIDENTIAL
  7. 7. About the company Prophecis is an outsourcing company providing customized development of algorithmic trading solutions, trading strategy research, expert consulting, and technical support services for all commercial trading platforms like Quant house, Tradestation etc to hedge funds, proprietary traders, and advanced individual traders. We specialize in the objective design and implementation of fully automated trading systems and advanced technical algorithms which helps you to make trading profits systematically. The firm is run by IIT, ISB and Imperial College alumnus with over 100 man years of experience working with algorithmic trading units of HSBC, IndiaBulls, Morgan Stanley and many more reputed firms in the space. Our solutions help increase trading profits to 15 specialized large/medium scale funds . CONFIDENTIAL
  8. 8. Contact Us Prophecis Analytics and Consulting Private Limited 910, 9th Floor, DMall, Netaji Subhash Place, Pitampura, New Delhi 110034 Monica.s@prophecis.com CONFIDENTIAL

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