Quality Money Management : Process Engineering and Best Practices for Systematic Trading and Investment

54 CHAPTER ◆ 4 Managing Design and Development system. If this is not the case, the operational risk increases due to having ine ...

55 bring more and different knowledge and perspectives to the table, but move more slowly through the creative process (and time ...

56 CHAPTER ◆ 4 Managing Design and Development successful managers will enjoy significant bargaining power when they threaten to ...

57 Systematic innovation in trading and investment begins with an analysis of all sources of market opportunities. In business, ...

58 CHAPTER ◆ 4 Managing Design and Development system idea generation is having in place a new product strategy that defines are ...

59 4.6. Summary While the number-one success factor for trading systems is the presence of unique trade selection and position m ...

61 Types of Trading Systems We classify all trading/investment systems into one of three broad categories—trigger systems, filte ...

62 CHAPTER ◆ 5 Types of Trading Systems such as a maximum VaR or a limitation on currency positions, on the portfolio risk to li ...

63 a subset of it. For example, high tech stocks generally have high P/E ratios given the perception of high growth rates, where ...

64 CHAPTER ◆ 5 Types of Trading Systems To create a more stable value for the ratio, our system uses a 30-day moving average of ...

65 Then, the system filters stocks based on price-to-book and market capitalization criteria and a momentum indicator. The syste ...

67 STAGE 0: The Money Document The trading and money management industry is highly entrepreneurial. Individuals who start new tr ...

68 CHAPTER ◆ 6 STAGE 0: The Money Document quickly new ideas so that seed capital allocation becomes an objective process. Provi ...

69 Competitive advantage Performance forecasts C. Product team II. Market analysis A. Target market B. Distribution and marketi ...

70 CHAPTER ◆ 6 STAGE 0: The Money Document this may be a quick and dirty route to launching a hedge fund, it is not a foundation ...

71 it cannot exist separately from engineering. This has the advantage that team members will be more closely involved in the in ...

72 6.2.2. Distribution and Marketing Channels Unless the product team works at a proprietary trading firm, they will need to rai ...

73 trading groups, but in small firms the costs are borne directly by traders. With $2.5 mil- lion in trading capital, a 50/50 s ...

74 CHAPTER ◆ 6 STAGE 0: The Money Document out of favor can lead to failure. Launching a large cap growth fund, one of the oldes ...

75 least at a high level, and scoped prior to initial seeding. A seed capital provider will not allocate capital both to well-pl ...