The new QI-System launched by equity researcher TCL Associates will aid corporate clients in managing risks and maximizing profits. The algorithm employs several strategies including trend following and statistical arbitrage.
Aug. 09, 2013 - CHUO-KU, Japan -- TCL Associates today announced the coming launch of their QI-System, a trading algorithm that allows the use of a number of portfolio level instructions, including cash balancing and risk neutralization. Using more than 50 different risk indicators, the QI-System enhances execution by correlating assets, volatility, and projected market impact. Resulting in better execution and risk management.
At its launch, the proprietary system will not be made available to the general public. It will only be available to corporate investors through a secure web platform.
Asian Market Analyst Mr Robert Todd at TCL Associates said “of course this new digital platform will produce strong results, but it will in no way make our analysts or staff members redundant”.
The QI-System is a high-frequency trading algorithm that utilizes computers to make complex decisions based on electrically received information to initiate orders, before human analysts are able to process the information received. The new algorithm employs a number of strategies to maximize profits including; trend following, which profits from the rising and falling of stocks and futures using moving averages to determine general market direction and initiate long or short trades. It also employs statistical arbitrage; this strategy correlates several securities such as, interest rate parity in the foreign exchange market which relates the prices of domestic bonds, a bond in foreign currency, the price of the currency, and the price of forward contracts of the currency. If the prices are adequately different to pay the transactions costs, then four transactions can be made to ensure risk free profits.
“The inclusion of the QI-System to our ever growing repertoire of algorithms underlines our pledge to provide our clients with a full set of trading tools and solutions to manage their trading needs,” said Chairman of the board of directors Mr Souta Tochigi.
The QI-System allows trading in options, futures and exchange funds accessing all major markets around the world in line with TCL Associates’ trading philosophies.