Fund Managers

Fund Managers need a structured method to quickly identify opportunities that compliment or hedge their trading program. Our Analytics provide this method with a systematic approach to classifying specific strategy themes. These Analytics also provide a PriceMap Framework that standardizes the  execution techniques of the identified opportunities that is unified across all market and asset classes.

Solution Scenarios

  • Trade Idea Generation – Find new opportunities that align with investment strategies.
  • Execution Overlay – Optimize trade execution with a structured price framework.
  • Hedge Strategy Overlay – Reduce risk and profit give-back with defined trade tactics.
  • Strategy Development – Create new trade programs or automated solutions.

Hedge Strategy Example

Hedging is about managing risk which can be defined in term of a market’s volatility index or VIX. Volatility indices identify the risk posture or state of an underlying security or futures market. The price points at which the risk state will change are identified in the risk structure of a markets associated VIX. This example shows how risk structure alignment can be used as the foundation to create a hedge strategy in the underlying security or futures market.

  • STEP 1.

    Determine the current market risk state. This is done by knowing the facts that define the context of a market’s associated volatility index, which are used as the basis to create an effective hedge strategy. Learn More.

  • STEP 2.

    Identify the risk structure. Every market has a single price point or RISK-ON | RISK-OFF switch that defines a Sentiment Bias for the trade period. This risk level or R-LEVEL is part of a PriceMap Framework that defines the risk structure which is used to standardize trading tactics.  Learn More.

  • STEP 3.

    Review suggested hedge strategy. Review the Hedge Strategy Theme which is identified in JSServices Strategy PlayBook. This provides guidance of “what” to do and “where” to do it, as expressed by the risk state and risk structure dynamics. Learn More.

  • STEP 4.

    Monitor applicable risk parameters. Classify the PlayBook Trade Tactics and associated Risk Parameters, which are part of the PriceMap Framework, to create a systematic approach to executing a hedge strategy, that is unified across all markets. Learn More.

  • STEP 5.

    Mitigate risk with strategic trades. Recognize the risks associated with a net long position which are basically, downside failure risk and profit give-back risk. Mitigate these risks by incorporating a Hedge Strategy that is normalized using JSServices Applications. Learn More.

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