Product for investors and fund managers. Using TradeWorks, investors can simulate trading strategies against historical data in order to quantify trading system performance. trademarks will be delivered through the browser and also through a desktop application.
TradeWorks has a number of interesting use cases:
Vikram is a fund manager. He picks stocks based on metrics ranging from relative valuation, earnings estimates & momentum. He wonders how he can combine his qualitative & quantitative approaches into a cohesive investment strategy.
Sunil is a short-term technical trader. He buys & sells commodities based on moving averages, breakouts, and other momentum indicators. There are 1000s of indicators available, and he wonders which ones provide the best signals for the commodities he trades.
Aditi is an investment strategist in a hedge fund. She observes that the Japanese Yen goes up against the US Dollar every time there is a spike in the CBOT volatility index. She wonders how a strategy of buying out-of-the-money VIX options and selling the US Dollar against the Yen will perform whenever implied volatilities start to rise. Will latch on a hedging strategy, such as say, shorting the S&P 500, alter the risk profile of her strategy?
This is where we come in. Using TradeWorks, Vikram, Sunil & Aditi can simulate trading strategies against historical data. Doing so helps them quantify the returns that would have been achieved historically by these strategies. The simulation also helps them answer questions such as:
· Does the strategy outperform in certain kinds of market conditions?
· Do a small set of trades return more than say, 80% of the total profit?
· What kind of equity drawdowns will I see with my trading strategy?
These are just a few of the questions you can answer when you use TradeWorks to develop your trading addition, if your broker allows automatic execution, you may even be able to algorithmically execute your strategy through Trade Works.
We have an open plug-in architecture. What this means is that functionality can be parceled out in discrete pieces. Thus we might give the core application away for free, and then have users buy the plugins they need. Plugins can be written by anybody, users, third-party developers, brokers, and so on. Plugins can range from simple applications that interface Trade Works with data providers such as Bloomberg, to complex applications that significantly enhance the capabilities of Trade Works.