Grow Your Portfolio
Learn more about the launch of the "Jolt Wealth Multi Asset L/S"
Quant Trading Strategy
The backbone of the fund, our proprietary trading model produces significant and sustained growth on a day to day basis.
Event Driven Macro
We track a variety of events including​ - earnings reports, and dividend announcements, mergers, and acquisitions, or takeover bids and regulatory changes to mould our overall market view.
Arbitrage
The funds actively seeks arbitrage opportunities in the derivatives market to produce sustainable returns.
- What is quantitative trading?
Quantitative trading involves using quantitative methods and algorithms to execute strategies. This has a broad set of uses; a typical example might be a trader using a mathematical model to take a position on what an asset “should” be worth before carrying out a trade. Models like these are designed to leverage information the market may be missing, such as what happens to a company or an industry when interest rates move in a particular direction. However, this is only one form of quantitative trading and is most often performed by hedge funds or investment banks.
How Jolt applies Quant
Quantitative trading is a specialized method who applies mathematical and quantitative models to evaluate financial products or markets. This helps us find trading opportunities and calculate risks.
How does Jolt Wealth use algorithms to carry out quantitative trading strategies?
1 / Valuation
Jolt Wealth discovers and aggregates the positions of buyers and sellers on several different exchanges. Valuation algorithms are designed to calculate the price of an asset
2 / Position management
Jolt doesn’t take a set position on an asset’s value, it maintains a running inventory of stocks and options in order to always facilitate smooth trading. Holding these positions carries significant risk because subsequent price changes can easily leave a market maker out of pocket.
Another risk in providing liquidity is being open to “adverse selection” – which is the possibility a buyer or seller knows more about an asset than the counterparty (in this case, Jolt). This means other participants might be better informed about an asset and use that information to win trades. Position management algorithms are developed and used to reduce or manage this risk.
3 /Execution
Execution algorithms carry out trades and manage orders while taking market developments into account at all times. Many options, for example, depend heavily on prevailing stock prices – so when the stock price moves quickly, the option prices move with it. If there’s a big move and a trader isn’t fast enough to cancel an order before someone else executes, the market maker could lose money. Knowing when to cancel a buy or sell order is just as important as knowing when to carry it out –execution algorithms are used to make these decisions in an instant.