Social media has created a cacophony of noise, but much of it is unfocused, or is a rehash of previous comments.
For market participants at all levels, filtering the noise is hard. Finding trade opportunities to focus on can be even harder. For this reason, we believe our process is the “missing element” to your trading.
We focus on the major macro markets – foreign exchange, fixed income, commodities and equity indices and certain single stocks. We view markets across time frames, and without bias. We recognise that longer term trading themes create both long and short term opportunities.
Our process is a mix of quantitative and qualitative analysis.
We combine various quantitative measures to assess the “risk tolerance” of the market to the global fundamental outlook. Coupled with our analysis of macro data and news flow, we create themes to describe how markets are broadly behaving.
We drill into markets that are driving those themes, or are likely to express signs of thematic change. We focus on our core markets : US equities, US Fixed Income, Major FX pairs, Oil and Precious metals, and volatility.
We overlay correlation and positioning analysis, high level technicals and an overall “network view” to create a subset of tradeable opportunities. We call this “The Radar Screen”.
On to the Radar Screen we overlay more focused analysis, and an insight into option market pricing, where appropriate. From this we can create key opportunities with optimal risk reward characteristics and a view on how best to express them.