Risk Management

EquitySoft’s systems manage risk by allowing our proprietary machine learning models to systematically optimize execution parameters to reduce errors in predictions and potential drawdowns. We program both absolute and function-based risk measures alongside threshold-based rules into our algorithms. Our algorithms also include alternative and economic data so that they are able to quickly respond to changes in the external environment.

  

Our selection criteria

EquitySoft’s portfolios are traded in established and stable markets only.  A decision to launch strategy is made only when its tested performance demonstrates a win-ratio equal to or greater than 60% with a minimum Sharpe ratio of 1.50 over at least one full economic cycle.

Asset Class and Securities Types

Securities that our portfolios trade must exhibit large to mega market capitalization, high liquidity with predictable spreads.

 

Algorithm Types

Our algorithms belong to a combination of (i) Predictive or reactionary, (ii) Use of traditional data, alternative data, or a mix of both, and (iii) Pattern detection, event-driven, or sentiment-driven trading algorithms.

  

Our Target Market

Sophisticated products are best suited for sophisticated clients. Hence, EquitySoft is restricting its prospective clientele and investors to accredited and institutional investors only; the securities of the firm are not for public distribution and are subject to the securities commission’s exemption category for investors.

 

Customized Solutions

Each client has a different risk profile, return and diversification goals. This is why EquitySoft will work with each client to best match each client’s investment profile with a particular style of strategy diversification.