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Investment Strategy

Quantitative Approach

We employ advanced quantitative methods, using algorithms and computer models to analyze extensive data, defining our investment strategies.

Transaction Types and Size

Our focus is on short-term trading in derivatives, stocks, and ETFs, employing algorithmic strategies to diversify across assets and timeframes.

Investment Pace and Holding Periods

Known for a rapid investment pace, we capitalize on short-term market movements, with holding periods generally not exceeding a few weeks, distinguishing us from traditional approaches.

Geographic and Industry Focus

Maintaining a global perspective, we diversify across industries and sectors without restrictions on regions or sectors. Our strategies encompass various futures, from stock indices to commodities.

Risk Management

Ensuring security is paramount to us. We achieve this through vigilant risk management, employing strategies like position stop loss and distributing asset weights through position sizing. Engaging in both long and short positions fosters market agnosticism and wide diversification across all types of securities.

 

Investment Process

1. Behavioral Analysis

We identify behavior patterns by examining historical occurrences and extrapolating them into future predictions. Our distinctive approach involves stringent criteria, requiring patterns with a proven two-decade history, numerous occurrences, and resilience across diverse market conditions. We apply this methodology to over 11,000 assets, spanning stocks, commodities, bonds, metals, energies, crops, and currencies.

 

A behavior pattern is an identical response to an identical stimulus. In trading, patterns can be found in price movements, which repeat over the years and in different contexts.

2. Rigorous Validation

We aim to guarantee that presented results stem from genuine behavior, not chance. Our pattern validation mirrors an engineering approach, emphasizing meticulousness and detail akin to airplane or vaccine development. The process involves keen observation, statistical validation, and ensuring probabilistically valuable conclusions. Only post this exhaustive validation do we proceed with algorithm development.

 

Patterns can appear in asset price movements, market and industry volatility, and trends across various time frames. Cross-relationships between different assets and markets offer diverse possibilities. After finding a pattern, we empirically validate it over time to ensure results align with expectations. This validation enables us to accurately calculate the future profit potential and associated risk based on validated hypotheses. 

3. Mathematical Strategy

Our strategy hinges on positive mathematical expectation. It’s not just about the frequency of success but also about maximizing profits compared to potential losses in each trade. This method allows us to know in advance possible gains and losses, enabling us to adjust position sizes for optimal returns and risk control.

 

The mathematical expectation or expected value of a discrete random variable is the sum of the product of the probability of each event by the value of that event. That is, it weighs the probability of an event occurring and the results that such an occurrence can generate. 

4. Algorithmic Strategies

We convert our hypotheses into precise rules known as algorithms. These rules, activated when specific conditions are met, guide our decisions. We incorporate risk management to address potential deviations from expected outcomes, defining a margin of error to measure the risk of loss. Each algorithm signifies a distinct strategy, and once programmed, relevant metrics are extracted.

 

A behavior pattern is an identical response to an identical stimulus. In trading, patterns can be found in price movements, which repeat over the years and in different contexts.

5. Portfolio

By consolidating numerous algorithms with positive mathematical expectations, we create an actively managed portfolio. Our goal is to tie profits to the combination of multiple uncorrelated systems, leveraging their potential across diverse scenarios. This approach minimizes systemic risk, fostering a capital curve marked by smooth and consistent growth over time.

 

6. Position Sizing

We strategically distribute portfolio risk, based on the historical behavior data of each asset. It allows us to equalize position sizes and prevent a single asset from shouldering the entire portfolio risk. This approach also contributes to a smoother capital curve, effectively moderating portfolio volatility.

 

7. Diversification

Our risk management involves thorough diversification of strategies and assets. Utilizing various behavior patterns with different logics, time frames, and directions, we manage portfolios containing numerous strategies simultaneously. Advanced technology enables us to mathematically calculate and pre-determine the impact of this diversification, ensuring a well-informed approach.

 

8. Decoupling

Enhancing risk control, our systems must exhibit zero correlation with the rest of the portfolio. Analyzing historical data series reveals correlations between assets, enabling the identification of patterns that do not respond similarly to stimuli, ensuring diversified responses.

 

Conclusion

At Emerge Funds Investments, our 100% quantitative approach, combined with applied engineering to trading, meticulous risk management, and automated operations, ensures unparalleled effectiveness. By leveraging advanced technology in research, modeling, and data analysis, we provide clients with a transparent edge. With more than 16 years of experience, we have consistently delivered net returns averaging over 23% annually, establishing ourselves as one of the world’s top-performing Hedge Funds.

 

Risk management

A clear advantage of our company is the active management of risk. To ensure security, we have formulated a range of different strategies for each portfolio. As an algorithmic hedge fund, every step of this process is executed and controlled by our systems, bypassing human psychology in every step we take.

Position Stop Loss

Each and every open position has its own loss tolerance threshold and if it is reached, the position is automatically closed by our systems who take control at the moment when panic and hope can affect investments more.

Position sizing

Equivalent distribution of the relative weight of every asset we trade is a way to ensure that none of them excessively affect the client's capital.

Bi-directionality

We can trade both long and short positions, which allows us to be market agnostic, that is, staying distant and independent of what is happening in the market.

Diversification

Since we can trade every type of security, we take advantage of diversification in markets, financial instruments, directionality, strategies and time frames.

Decorrelation

Our sophisticated method and technology allows us to take the decorrelation strategy to the extreme, so price triggers never affect different positions the same time, the same way.

Quick and Seamless

1.

Open your
brokerage account

2.

Fund it

Fund your account with your chosen investment amount.

3.

Buy our portfolio

Instruct the broker to
purchase the portfolio.

 

And that’s it! You will have joined a proven way to get More Money for Your Future*

Follow the performance of your investment through the broker’s platform or directly on the Vienna Stock Exchange. 

Do not hesitate to contact us if you need assistance. For existing broker accounts, we can help you check the availability of our portfolios.

*Note that past performance does not guarantee future results. This statement is not financial advice, and individual outcomes may vary. Make informed decisions based on your financial goals and consider consulting with a financial advisor for personalized advice.

Dubai Branch Office

Bay Square, Building 4, 2nd floor, Dubai

+971 585530278

All information on the website is intended for general interest only and does not constitute legal or tax advice nor an offer of any investment fund or service. No part of this website should be construed as financial advice. Investments involve risks. The value of investments can go up or down, and investors should be aware that they may not recover the full amount invested. Emerge Funds Investments will not be responsible for any inaccuracies in the information contained on this website or for errors or omissions in its content, regardless of the reason for such inaccuracies, errors, or omissions. In any financial investment, past results do not guarantee future outcomes.
Australia: Emerge Funds Investments Pty Ltd ACN  is an authorised representative (AR No. 1309347) of Capital and Treasury Solutions Pty Ltd (AFSL No. 429066). Any advice on this website is general advice that does not take into account your circumstances, and before acting, you should consider its appropriateness with regard to your circumstances.

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Copyright © 2024 Emerge Funds. All Rights Reserved. Powered by Instante Net