Equities Algorithms

A turnkey portfolio offering: simply license our algorithms

Quant Alpha Diversified
Our core equities offering is the Quant Alpha Diversified Programme. This is a multi-model, leveraged strategy focused on generating risk adjusted returns that are best in class by carefully combining uncorrelated strategies, while utilizing quantitative diversification tools and systematic processes to produce consistent profits in wide ranging market environments. Leverage is used rarely, with a maximum of 200% exposure. Average exposure remains quite low at 42%.

The programme currently only trades highly liquid US stocks, although additional markets will be introduced over time. Your subscription ensures you are always kept up to date with the latest enhancements and upgrades.

INVEST SMARTER

For investors who expect to out-perform

01

Software as a Service
Depending on your requirements, the Quant Alpha equities trading services can be delivered through various platforms. It's best to reach out for a discssion on your individual (institutional) requirements. Generally, you will need an Interactive Brokers account to run our software. Our quantitative trading solutions give you access to cutting edge research & technology, with full visibility & control, along with a dedicated portfolio management partner.

Every update to our program is deployed to your account. We are in this together for the long term.

02

Full Transparency
Quant Alpha operates a small & exclusive membership, because our objective is to remain nimble, responsive and be a long-term wealth-creation partner. We believe in quality over quantity, and prefer to provide our software to firms who share our values & vision.

Monitor every trade from your own phone, tablet or desktop. We have our own funds invested into our algorithms, so we offer you the very portfolio we trade ourselves – we wouldn’t have it any other way.

Key Statistics

Example back-tested results net of all fees & commisions *

Annual
Return

33%

Max
Drawdown

-14%

Sharpe
Ratio

3.2

Correlation
to S&P500

0.2

# Trades
Per Annum

800
* Based on a 25% performance fee, with a high water mark hurdle.
Overview of the Program
The Quant Alpha Diversified portfolio has a mean reversion philosophy at it’s foundation, yet never seeks to swim against the tide and always ensures strong momentum and trend characteristics support each trade. The advantage of the mean reversion approach is the high trade count and short holding period, which allows us to trade at a high frequency and really benefit from the corresponding compounding of returns. It also means that, in accordance with the law of large numbers, we are more consistently generating our “expected” trade results and ideally this will translate into a smooth equity curve.

The long algorithms are run on approximately half of the portfolio, while the remainder of the portfolio is dedicated to short models. This is our primary risk defense, and risk-management considerations are the pillars of strategy. We dynamically size positions according to the prevailing market regime, and accumulate and distribute positions in a continual flow, never “all in” with our hard-earned capital. In this manner our average exposure remains quite low.

The program currently only trades highly liquid US stocks, although we are developing additional algorithms for international shares and futures, which will further diversify & reduce risk. Diversification of strategy types (for example, mean-reversion & momentum strategies) is also a critical risk control, which we primarily implement through the use of multiple strategies combined to work together to maximise returns and minimise risk. Further trend-following and momentum models will soon be added to the portfolio.

OTHER CRITICAL RISK-MANAGEMENT PRINCIPLES

Always be prepared - the markets can remain irrational for longer than you can remain solvent

01

Low Leverage
Our leveraged program utilises margin on occassion, however the average exposure is only 42% of equity. Our unleveraged program uses no margin whatsoever. Also, by keeping our positions small, and trade-count high, we generate a smoother equity curve (less volatility of returns).

02

Diversified
We take small positions in a high number of stocks and different algorithms are working together to enter & exit positions. Further, we capitalise on different alpha-generation factors within the one program, taking particular advantage of the well-documented market behaviours: mean reversion & momentum.

03

Long - Short
We employ a balance of long & short models to hedge our bets & be ready for whatever the market throws at us. This means we profit in both rising & falling markets. The “all weather portfolio” is the least likely to experience extended periods underwater – in fact draw-down recovery is very swift. Our returns are highly uncorrelated to the market.
Backtested (Hypothetical) Monthly Returns

* Results shown here are before fees. This is to enable detailed comparison with other models & platforms.

Generated by wpDataTables

ABOUT THE RESULTS ON THIS PAGE

It’s really important to read the disclaimers in conjunction with the information on this page where we highlight the limitations of reviewing hypothetical back-tested results. Back-tests can be overly optimistic, or a selection of the ‘best of many’ outcomes. They can also be ‘curve fit’ to the relevant time frame and have no ‘predictive’ power whatsoever. We are happy to discuss how we seek to avoid these common pitfalls with the generation of very conservative, yet realistic back-tests. Our models are very robust & the back-tests serve as excellent indications of what we expect a model to do (over time), & a benchmark to compare with live returns. Fees, commissions and expected slippage are included.

We are more than happy to get into the detail of our models and assist you with your due diligence, just reach out.
These systems have been traded live since January 2018.


01

Assumptions
Take a good look at the rest of the site to get comfortable with how we build our algos and why we believe in the value of our backtests. We are not without live performance history and real-world experience, quite the contrary.

02

Track Record
The track record (third party recorded) of our live performance is available to serious customers. We update the performance tables on this page with the live performance on our own accounts as it comes in.

03

Comms & Fees
Commissions, fees and slippage are all accounted for in our back-tests.

Further models are in development & these will be added to the portfolio over time to further diversify returns & reduce risk.

How it all Works

BECOME A PARTNER
We believe exposure to algorithmic strategies is an essential part of a modern portfolio. We’re disrupting the hedge fund industry by making a quantitative portfolio accessible, understandable & easily manageable. Service is our highest priority: we’ll take care of maintenance, support & updates. We don’t think there’s anything else quite like this: where self-directed, automated investing capabilities meet genuine, individual service.

WHAT MAKES QUANT ALPHA DIFFERENT?
“In the building practices of ancient Rome, when the scaffolding was removed from a completed Roman arch, the engineer stood beneath. If the arch came crashing down, he was the first to know. Thus his concern for the quality of the arch was intensely personal, and it is not surprising that so many Roman arches have survived.” (Seth Klarman, 1991,“Margin of Safety”)
Like the Roman arch builder, we are fully invested. Reach out for a casual chat or to get into the detail & start the due diligence process.

Your Success = Our Success

Copyright 2022 Quant Alpha – ‘Quant Alpha’ and ‘Quant Alpha Tech’ are Trade Marks of Quant Alpha – all rights reserved

DISCLAIMER – READ FULL DISCLAIMER HERE

All the information contained on this website is general in nature and does not constitute personal or investment advice. Quant Alpha produces algorithms and software only and does not trade or arrange any trading on your behalf. Quant Alpha will not accept liability for any loss or damage, including without limitation, any loss which may arise directly or indirectly from the use of, or reliance on: its algorithms; the information on this site; or information provided by its managers, partners or affiliates. You should seek independent financial advice and conduct your due diligence prior to acquiring any Quant Alpha technology. Quant Alpha is neither a registered investment advisor nor an investment advisory service and does not provide any recommendations to buy or sell particular financial products. 
Before engaging in any trading activities, you should understand the nature and extent of your rights and obligations and be aware of the risks involved. Don’t trade with money you can’t afford to lose. Your trading and investing decisions are entirely your own responsibility. All securities and financial product transactions involve risks. Where Quant Alpha provides hypothetical representations of what the technology has achieved in the past, this has been done with the greatest know-how, data and expert technology that is available, but still, Quant Alpha cannot guarantee that these results have any likelihood whatsoever of being achieved in future. Where records have been provided of how the software has performed on management’s own accounts, whilst these are an accurate and true record of what has taken place in the past, they are not necessarily indicative of future results – the future is as unknown to Quant Alpha management as it is to anyone else. The past performance of any trading system or methodology is not necessarily indicative of future results.