Trading Systems

By combining years of research and trading experience, JRC Capital Management Consultancy & Research GmbH is able to develop quantitative trading systems that are practical and immediately applicable. The extension of the internal know-how by participating in research projects simultaneously results in in-house innovations of quantitative trading strategies.

Quantitative trading systems are software algorithms that generate buy and sell signals on the traded securities markets. They are particularly suitable for highly-liquid markets, which display regular trend movements, in which the direction of the trend plays no particular role.

Financial Engineering

Financial engineering and computational finance concern the development of trading systems and the composition of portfolios. It is a relatively young field of research, aiming to apply technological and mathematical models to financial markets. The last two decades the rapid development of information technology has brought up new opportunities for researching and simulating financial markets and economic systems.

In this context, JRC uses automated trading systems. Our reputation and our expertise in this area is the result of 20 years of research. This makes the company one of the most successful and innovative providers in the market.

Functionality

Based on the input of extensive financial data an advanced data center is used to generate entry and exit signals. Exclusively quantitative methods are applied on data analysis. For example, market prices are scanned in fractal patterns, which in the past have been proved to indicate trend continuation or trend reversal.

The patterns are linked to complex, market-specific indicators. For example, “Momentum indicators” and “sentiment indicators” indicate an increased probability of trend continuation or trend reversal.

JRC trades the most liquid currency pairs, as trading systems in general shows their strength there. These include a number of major currency pairs like EURUSD, EURJPY, USDJPY, GBPUSD, AUDUSD and some crosses like EURJPY, EURAUD, GBPJPY.

Each system is customized by parameters specific to each market. Furthermore each system fulfills on its own the requirements of risk behavior and is profitable across different market phases.
The higher-ranking level of trading systems is the portfolio and risk management. Dynamic weighting models are used, which select the active trading systems and position sizes.