Home

Principals

Institutional Trading
Strategy Design

Strategy #1 – "JET"
Bond Intraday
Institutional Only

Strategy #2 "JET" Euro Currency Intraday
Institutional Only

Strategy #3 "SIB
Bond" Daily
Institutional Only

Strategy #4 Trend & Cycle
S&P 500 Daily

Institutional and Corporate Clients FAQ

Free Articles

Contact Us

Institutional And Corporate FAQ

Q. Is KeyPoint Market Analytics a “quant shop”?

A. Yes and no! While everything in a mechanical rule-based strategy design is ultimately reliant on mathematical formulas, we believe our greatest asset is 25 years of watching markets on an intraday basis. We try to design trading strategies that are based on the discovery of enduring market character, rather then on highly sophisticated mathematical applications.

Q. What is KeyPoint Market Analytics essential design philosophy?

A. Our successes are guided by two themes in trading strategy development; first is that simple is almost always better. And second, those simple solutions are rarely obvious. This is where we believe our experience is most essential.  

Q. Are KeyPoint Market Analytics Trading Strategies “over-optimized”?

A. No. While some level of optimization is always necessary to determine what is valid and what is not, over-optimization is an exercise that is ultimately self defeating. There are a number of ways to avoid over-optimization (see our free article on this important topic here).

Q. Can a mechanical trading strategy really help me if I trade based on fundamentals?

A. Yes it can. It is advantageous to be in tune with the fundamentals of the market you are trading. However markets are not efficient, can stay irrational for extended periods, and occasionally sudden shifts in the fundamentals can occur without warning. Trading with a sound rule based strategy around a fundamental bias, can be even more profitable then either alone.

Q. Can mechanical trading strategies help me if I am a discretionary trader?

A. If you are an exceptional and elite discretionary trader you probably should not be introducing anything new. However an effective trading strategy in the hands of good proprietary trader, may be more profitable then either alone.

Q. How can a rule-based mechanical strategy help a discretionary trader?

A. There are perhaps as many successful prop traders “trading around” a mechanical trading system as there are those following one “exactly”. No one way is right for everyone. Either way, trading with the empirical information provided by a thoroughly tested trading strategy is advantageous for the vast majority of traders.

Q. Is trading strategy logic always fully disclosed?

A. We usually produce what might be termed “grey box” trading strategies. This means the principles of the logic are fully disclosed, but the exact details of some trade signals are not. This protects KeyPoint Market Analytics as well as its clients. A Trading Strategy designed for a specific client can never fall into the hands of a competitor.

Q. What is the cost of a custom designed rule-based trading strategy?

A. An initial development deposit is usually required before new work commences. We insist however that compensation be largely tied to performance. We expect to be fairly compensated if a strategy yields our clients profits and not at all if it does not.

Q. Does KeyPoint Market Analytics develop strategies on an intraday or end-of-day basis?

A. While end-of-day trading can certainly yield satisfactory results, and a few very strong end-of-day systems are included in our trading course, we usually find that intraday strategies allow greater opportunity to capture moves earlier and control drawdown better. 

Q. Which markets does KeyPoint Market Analytics cover?

A. We are open to anything, but markets we have experience in include interest rates, stock indices, Euro Currency, Gold, and Crude Oil.