Correct Market Assumptions Imbedded in the Workstation Design

The Quants Workstation was designed with the assumption that the markets are non stationary – the structure underpinning the markets is evolving over time. This hidden movement is in addition to the observable movement of price reacting to various market forces.

If the underpinning structure itself is moving around, then the usefulness of any parameterization of any indicator or model must be expected to have a half-life. If the usefulness of a parameter set is expected to decay, then the parameters must be allowed to adapt. The mathematical and manipulative tools available to the quant allow systems to adapt to a changing market environment.

Market forces are nonlinear. The quant must have nonlinear as well as linear tools in any toolkit.

The efficient market theory & random walk hypotheses have been discredited and rejected. The quant workstation facilitates data mining for persistent inefficiencies that usually have low signal to noise characteristics.

The Importance of this Website to Your Business – As the markets become more volatile, you would do well to train your quants to protect your portfolio against the ill effects of nonstationarity.

Exogenous Data Based Models – The good and bad characteristics of Exogenous Data. (Don’t miss the interesting visualization of some SPX Index Option data.)

Visualization of Exogenous Data – In case you missed it above.

Quantitative Analysis Platform – A user-friendly modeling platform for improving the productivity of quantitative analysts.

Overview – Advanced Automated trading Systems.

Consulting Services – Helping your quantitative analysts deliver a better product for your clients.

Trading Model Building Services – Continuous and Discrete Models, using Price or Exogenous Data.

Quantitative Analysis Training Seminars – Topics covered in typical training seminars.

Model Validation – A Catch-22 in the struggle between the Central Limit Theorem and the “Law” of Requisite Variety.

Non Trend-Following, Non Technical Analysis Methods – The difference that a non-price market view can make in your portfolio’s success.

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