Quantitative Trading Technologies
Strategy Development
We help our clients to develop robust and effective trading strategies that are tailored to their specific needs and objectives. Our team of experts uses advanced quantitative models and algorithms to identify profitable trading opportunities in the market. We oversee the entire trading process, from the conception of a trading idea to its deployment. Additionally, we provide around-the-clock monitoring and comprehensive reporting to keep you informed and confident.
Portfolio Optimization
Our services include optimizing your portfolio to achieve the best possible risk-reward ratio. We use sophisticated mathematical models, including the use of machine learning techniques, to determine the optimal allocation of assets in your portfolio. Effectively tailoring your portfolio to meet the exact risk requirements and investment objectives of your strategy.
Performance Analysis
We offer an extensive suite of performance analysis services designed to provide a thorough understanding of your trading strategies effectiveness. Ultimately, our goal is to equip you with the tools and insights necessary for successful trading. Through our performance analysis services, we help you to not just understand, but to leverage the data, thereby transforming numbers into opportunities. Some examples could be to rank portfolios or fund holdings by manager skill, compare to similar strategies or develop a custom benchmark.
Risk Analysis
Our team conducts comprehensive risk analysis designed to unveil potential threats and vulnerabilities within your trading strategies. Utilizing state-of-the-art tools, our analysts review each aspect of your portfolio to expose potential risk factors.
Further enhancing our risk management services, we provide sensitivity analysis. This vital tool aids you in visualizing how shifts in market conditions, such as interest rates, market volatility, or other key financial indicators, might impact your portfolio.
Cost Optimization
We help you minimize trading costs through efficient trade execution and replicating similar behaviour with more cost-effective alternatives. By bridging efficient trade execution with cost-effective alternatives, we offer a holistic solution that can significantly enhance your trading performance.
Automation
We offer automation services to streamline your trading processes and improve efficiency. This includes automating trade execution, risk management, and other key trading functions. This could either be achieved through custom development or by utilizing our flagship product, Markov Index Builder, which automates almost any trading strategy. All steps from universe selection to actual execution at your broker of choice are covered.
Services
Markov Capital is a quantitative trading technology company based in Gothenburg, Sweden. We specialize in providing innovative and efficient trading solutions that leverage advanced quantitative techniques and algorithms.
Our expertise spans across various aspects of trading, including strategy development, portfolio optimization, performance analysis, risk analysis, and cost optimization.
Our team of professionals is committed to delivering superior service and value to our clients. We are driven by our mission to revolutionize the trading industry through cutting-edge technology and quantitative strategies.
Below are some example services we provide, request a meeting using the contact form below to find out what we can do for your portfolio.
Philosophy
Our investment philosophy is rooted in pioneering data science, which forms the bedrock of our decision-making process.
Systematic Management: We are committed to continually incorporating and automating new methods in our processes, adhering to a systematic approach that reinforces efficiency and accuracy.
Premium Data Access: We leverage high-quality financial datasets from S&P Global and others. Significant efforts are devoted to cleaning, processing, and analyzing these datasets with the power of cloud computing, ensuring we extract the most relevant and insightful information.
Quantitative Analysis: Our approach is deeply rooted in evidence-based practices, drawing on the wisdom and insights of Nobel Prize laureates and eminent academics and practitioners from around the globe.
Machine Learning/AI: Since our start in 2019, machine learning has been a fundamental component of our research and development process. By automatically identifying valuable signals within vast amounts of data, we gain a competitive edge over traditional methods and market participants.
Methodology
We're committed to robust, transparent backtesting processes. We believe in the importance of constant refinement of our procedures to ensure the strategies we develop stand up to real-world conditions.
Data Quality and Length: We ensure our backtesting employs comprehensive, high-quality data, covering a range of market conditions. This reduces potential bias and provides a more realistic view of how a strategy would have performed in different economic regimes.
Simplicity Over Complexity: To avoid the trap of overfitting, we adhere to a philosophy of simplicity. We avoid complex models that are excessively fine-tuned to past data and could compromise future predictive performance.
Training and Testing: We divide our dataset into separate training and testing sets. The model is developed using the training sets, while the testing sets are
used for evaluating the model's out-of-sample performance through widely used methods for statistical validation, such as cross-validation.
Realistic Constraints: Our backtesting integrates real-world costs and constraints such as transaction costs, liquidity constraints, and market impact. This ensures that our strategy’s practical performance is as accurate as possible.
Multiple Testing Adjustments: We recognize the increased probability of false positives with multiple testing.