Managed Leverage

ML^2 is the next generation trading platform {trading ecosystem} for active traders and investors in derivatives, offering unique tools to derive unique trading insights : so you can design your trading strategy to meet your trading objectives

Managed Leverage

Foreign Exchange Equity Indices Equity – CFDs PAIRs [long – short]
Fixed interest ETF Commodities Volatility - options

Mi Portfolio

Depository to list the derivatives in your portfolio or to list to watch [across any asset class] – accessed by all the analysis tools

  • Mi Portfolio

    whatever you want to look at , drop it in this bucket

    List the derivatives you want the ML^2 program tools to analyze
    =>
    these derivatives are accessed by all the ML^2 tools

  • Mi Watchlist

    List the derivatives you want to be ‘alerted’ to or simply ‘watched’
    : set up your desired trade

  • Instrument Scorecard

    Each derivatives core intelligence in detailed summary format :
    assess each derivatives risk profile and suitability for the trade

    • the full trade cycle = [the analysis => entry] : managing the trade through time => [exit]
      = meeting your personal trade $objectives
  • Mi ETF Portfolio

    ETF portfolio monitoring program will monitor and alert you in advance
    to any adverse changes in your selected portfolio’s risk profile :
    [determine your $equity@risk : you will be alerted in advance to when this $level is to be breached]

  • Asset Allocation

    Asset class scorecard : profiling asset classes using longer term price trends cycles
    [stock indices, fixed interest, commodities, foreign exchange, ETFs]
    - indicating the current price trend cycles and when those price trends are about to change
    – use this tool to re-view : re-balance : re-weight : your current portfolio asset classes, build
    more diversified portfolios with alternative asset classes

Leverage Intelligence

Tools focused on determining the derivatives optimal leverage
over a defined holding period = the optimum [no margin call] leverage

  • Cash Buffer – optimal leverage

    the power of leverage - stay in the trade leverage [the just right leverage]

    Optimal leverage through defined time = the maximum no margin call leverage

  • FX Cash Buffer

    Optimal leverage through defined time = the maximum no margin call leverage
    for Foreign Exchange derivatives

  • Core Structure – Price Signal Strength

    contact : are we losing the price signal , is this just noise

    Detects the strength of the derivatives price trend through time
    = the price trends persistence through time [price path reversal signal]

  • Moments to Stress

    time schedule on the slow moving train wreck to margin call

    Calculates the time period to margin call


Market Intelligence

Tools focused on the total trade cycle : determining the ‘why’ of the trade :
the intelligence to understand the full trade cycle :
the ‘what’ derivative to trade :
‘how’ to [entering the trade => risk management of the full trade cycle => exiting the trade]
= to achieve your trade $objectives Price Path – forward price path

  • Core Structure : price trend - price path - trend time

    is the instrument price trending or is it mean reverting or is it in random

    Each derivatives current projected forward price path - trend : categorised as [persistent long : short] : random [unpredictable] : persistent mean revering
    + the expected number of trading days left in the trend

  • Phase Transition : detects when the price trend will change
    [alerts you before the price trend changes]

    the trend is about to end [detecting price anomalies that change the trend ahead in time]

    Detects [forewarns] when a derivatives price path is about to change direction
    = gain the insight to know when to sell, buy, hedge an exposure before the
    price trend changes direction or state [persistent, random, mean reverting]

  • Portfolio ROI directional

    select the wheat from the chaff

    Derivatives that offer the highest directional price return over the trading period

  • Price Path – forward price path

    where the price is going : what the price is going to be

    Tables the derivatives projected future price path [high/ low/ close] :
    random price path : worst price : extreme price path over the next 10 - 20 trading periods

  • Entry Point – execution price

    the sweat spot to enter the trade - limit order on your entry

    Each derivatives optimal entry price [range] for a long or short directional trade :
    ensuring the first critical period of the trade the highest ‘probability of survival’
    = remain in the trade till the trade goes your way

  • Directional Volatility

    what is volatility up to

    Detects the current state and future state [direction] of the price volatility for selected derivatives

  • Option Arbitrage

    • Option arbitrage strategies : arbitrage the directional price trend to option premium
      / arbitrage the volatility to option premium / arbitrage the time element to option premium

    • – if you know the derivatives price path through time and volatility [through time] :
      you can arbitrage the price range to ATM option premium

  • Derivative trendiness [the nature of the derivative to trend or mean revert]

    Profiles selected derivatives and indicates the %time in a trending-momentum price structure
    or % time in mean reverting price
    structure = use this tool to select the derivative
    that meets your preferred trading style
    [trend-momentum or mean reverting]

Intelligence modules

The core ML^2 tools in the 1 module : providing the required intelligence
for each traders preferred tools in 1 spot

  • RADAR

    Navitage the trade cycle

    Trade cycle program to enable the active trader to select, manage and monitor the trade from takeoff to landing:
    reseach
    => instrument selection => risk management profile [leverage, entry - exit - stop prices, ROI]
    => monitoring the exposure => exit strategy while at all times knowing the price path
    Instrinsic feature is that the RADAR program monitors the instruments forward price path for turbulence

  • Entry Level Trader Module [customised]

    Market + Leverage intelligence tools for the entry level [new trader]

  • Self Directed Investor Module [customised]

    Market + Leverage intelligence tools for the self directed investor
    = across all asset class, leverage-non leverage, active + passive trading programs

  • Introducing Broker Module [customised]

    Client retention program for the Introducing Broker / Referral Parties
    : on-boarding, retention and activation programs that extend the trade $lifecycle for your clients

  • Heat Map

    Instruments heart beat

    Point to access to all instruments in order to get critical intelligence : core structure , price path

Portfolio Monitoring modules

Portfolio monitoring programs to detect and alert to changes in the portfolio’s market risk profile
[ahead] through time :
(i) [set your personal portfolio risk profile = $capital@risk] and be alerted when this
benchmark will be breached ahead in time
(ii) projected forward $value of the portfolio and
(iii) rebalancing options to allow the optimization of your portfolio risk and return profile

  • Portfolio Monitoring

    answer to : is your portfolio going to make money tomorrow , next week

    Program designed to monitor your derivative portfolio through time to alert you to :
    i) Number of days to margin call [$equity drawdown]
    ii) $ amount of the drawdown
    iii) the derivatives creating the stress
    iv) the 20th day forward $value of your portfolio = designed for short term investors in multi-asset portfolios

  • Sleep@NightLVR

    trade => sleep well - manage your portfolio's downside when you are not looking

    Program designed to monitor your equity derivatives portfolio through time to alert you to :
    i) Number of days to margin call [$equity drawdown]
    ii) $ amount of the drawdown
    iii) the derivative instruments creating the stress
    iv) the 20th day forward $value of your portfolio = designed for investors in equity portfolios
    [leveraged – no leverage]

  • ETF Portfolio Monitoring

    ETF portfolio monitoring program will monitor and alert you in advance
    to adverse changes in the $value of your ETF portfolio
    [you define the level of Equity@$risk you are willing to accept, you will then be alerted
    in advance when this equity@$risk is about to be breached]

  • APA Portfolio Monitoring

    Selected ETF portfolios i) passive1 ii) passive2 iii) active ETF portfolios incorporating the
    portfolio monitoring intelligence : alerting you in advance to any adverse changes to the $value
    of your selected ETF portfolio
    = manufacture domestic - global ETF portfolio’s designed to meet your specific requirements
    across multiple asset classes
    = the ETF portfolio is automatically monitored to alert for changes in the specified risk profile [$@risk]

  • Portfolio LVR margin

    the portfolio heart beat - indicates the changes occurring to its market risk profile

    Equity portfolio benchmark margin [indicates the changing nature of the portfolios risk
    through the optimal margin %]

        o- calculates the optimal margin to leverage ratio :
        o- adjusts the leverage to changes in the portfolio’s risk profile through time
        o- linked to the sleep@nightLVR portfolio monitoring program

  • portfolio construction

    Lego land : tools on how to build your portfolio to your specifications

    Series of tools that enable risk profiling and the construction of a portfolio
    of instruments to meet your financial objectives take the mystery out of passive investment
    - understand the base assumptions in how a portfolio of instruments work

Intraday Trading modules

Trading programs specifically for intra time frames = short term time frames
that meet intra-day [hours to end of day times horizons] as well statistical arbitrage programs [PAIRs]

  • Extreme LONG<5

    the crazy ones - the outliners - the ones to watch

    Trade signal program for selected derivatives [FX majors + stock indices]
    - LONG only with the [limited] holding period between 2 - 3 <– 5 units of time [days, hours]
    => capture the extreme directional price movements expected from the end of or start of the trend cycle

  • Intra signals

    trading program for in the moment [minutes, hours]

    Trade signal program for intraday exposures [FX majors + stock indices]
    – limited holding period of between : within 1 hour => EOD => 24 hours

  • PAIRs [statistical arbitrage trading]

    buy 1, sell 1 - trade the price spread in a capital neutral exposure

    Trade signal program for LONG / SHORT : 2 co-integrated derivative instruments
    : trading the changes in the price differentials [movements]
    => LONG : SHORT exposure [long derivative A, short derivative B] profiting from increases or decreases
    in the price differential

  • Co-Integration

    The 1 critical component [market indicator] that drives the instruments price

    Single factor that drives selected instruments price - similar to PAIRs in that you trade
    instruments based on the factor that drives their price through time

  • Automation Trading program

    start your engines

    Automated trading program based on ML^2 core structure / phase transition / price path tools
    : administered to allow an automated functionality
    ML^2 allows discretionary trading, hybrid trading and automated [semi automated] through
    administration of the key components of the trade profile

Institutional Portfolio Monitoring

Advanced web application tools that create deeper analysis on the core structure programs

  • Institutional Portfolio Monitoring

    B Book dynamics - squeeze out every basis point

    B Book market makers portfolio management program

  • Institutional ML^2

    Back to complexity - higher intelligence on the trade

    Enhanced version of the ML^2 web application - more granular analysis on core structure
    moving from simplicity to complexity in accessing more information on each instruments risk profile

Benchmark

Active trading benchmark using the optimal trading strategy that indicates the maximum return
on each trading strategy
as an indicator of potential yet unattainable trading returns

  • OTS benchmark

    The 70% solution to absolute alpha

    Optimal Trading System - the unattainable maximum return in each trade window [core structure]
    See how you match up to absolute alpha

  • CSI simulation tool

    what does it mean if the price closed here

    What if the price closed at this level - how will this change the instruments price path over the
    next units of time tool that allows the active trader to input an expected price and the resulting
    changes in price path as a simulation

Tool Shed

A selection of tools that calculate the full suite of trading strategies covering leverage and options
as well as access points to ML^2 core structure index to create your own program rules

  • Leverage Calculator

    Safe harbour approach to increasing exposure and leverage

    How to manage your exposure given current equity and leverage : while ensuring you meet your trade objectives
    trading program that monitors the current risk profile [leverage, cash buffer, required equity]
    to ensure increases in exposure can meet trading objectives

  • Option Calculator

    Toolshed for all your options

    Calculators for all option strategies

  • MT4 Trading Applications [module]

    price path
    moments to stress
    cash buffer / FX cash buffer
    portfolio monitoring program

  • ML^2 access – core structure index

    build your own trading program rules using the ML^2 core structure program

    Access the ML^2 algorithms raw CSI index : to create your own automated trading program
    capable of replicating most of the ML^2 applications - three algorithms :
    (i) instrument CSI index
    (ii) portfolio CSI index [stockindices, USDX, ETFs]
    (iii) chaotic CSI index [sensitive index captures most short term price trend changes]