Prophecis is having an offshore research unit to develop and program trading strategies in Trade station, carry out backtesting, take lead in researching risk management strategies and plateform and provide IT support for execution of trading strtegies. We act as an offshore research unit, based in India, The unit cost reduced by 5 times considering lower costs of resources and IT infrastructure in India.

1. ALGORITHMIC TRADING &
MANAGED ACCOUNTS
Core Offerings
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2. Executive Summary
• About Us
Prophecis is a Specialist Company which provides algorithmic trading services to over 20 hedge
funds, proprietary trading houses and advanced traders in US and European markets. We are
experts in data mining, machine learning and quantitative analytics.
• What We Do
We provide our clients with means to generate profits from financial markets by
mechanical/systematic trading.
• How Do We Do It
A.) We provide you with a managed account service where we utilize completely automated
trading strategies and systematic portfolio management.
B.) We provide tools and research to augment your existing trading operations & research
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3. Algorithmic Trading & Systematic Trading Portfolio
A Trading System refers to a single or a set of algorithms combined together to analyse market data and
thereby generate a trading decision. Throughout the document, the term trading system could mean
either a single logic model/algorithm or a combination of such being applied on to a certain exchange
traded instrument/underlying.
Risk Management in the current context refers to the aspect of trading systems when they are making
losses. The objective is to quantify how much could be lost and control the losses. Thus, risk
management outlines the rules of conduct for the portfolio manager and the trading system during an
unfavorable time in the market.
Money Management refers to the rules of investment allocation to various different trading systems.
Money management is essentially the strategy of controlling and timing the exposure
Systematic Portfolio Management refers to the task of allocation of investment across trading systems
and also to efficiently choose the best performers via predefined rules and metrics.
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4. Our Approach
• Trade Systematically
We use automatic trading systems which have proven statistical significance on markets. This method of trading
ensures maximum discipline and control. The algorithms are the essence of experienced traders by converting their
edges to rule based trading.
• Diversify the Trading Strategies
Diversifying in terms of assets is losing its sheen as globalization takes over. A better option now is to diversify in terms
of trading strategies. We mix different strategies and instruments to generate a resilient portfolio.
• Be Opportunistic and Predictive
We identify “cause” and “effect” patterns from data and use them extensively to get a head start in any trend. The
approach is to mix data mining with trader experience for predicting moves in next few days.
• Manage Risks
We believe in transitory nature of everything, thus there is always a strategy to handle unexpected events. Our risk
management methods are adaptive and highly pro-active. We have a unique methodology called algoCheck which
allows us to avoid curve fitting and constructing an over fitted system by means of 100s of stress tests.
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5. Concept Illustration : Diversification
Frequency
Long Term
Medium Term
Stocks Exchange Traded Funds Futures Short Term
Sector Sector Underlying Asset Class Very High Frequency
Basic Materials Financial Services
Soft Commodities
Technology Health / Biotechnology
Metals
Utilities Natural Resources Energies
Financial Real Estate Fixed Income
Technical Analysis
Science / Technology Forex Advanced Methods
Healthcare Fundamental Analysis
Stock Trend Follower
Conglomerates Specialty / Miscell
Fundamental Models Cycle Detection
Indices Oscillator
Consumer Goods Telecommunication Pattern Matching
Contrarian Probability Models
Industrial Goods Utility Adaptive Hybrids
Scalper Stochastic Models
Breakouts Misc Pricing Models Self Learning - AI
Asset Class Waves
Forex
US Equity
Non US Equity
Fixed Income
Commodity Risk Management
Money Management
Tradable Instrument Risk Profile Trading Strategies
Risk Strategy
Combining diversification effects of uncorrelated markets and strategies
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6. Systematic Managed Accounts
A Systematic Managed Account is a multi-strategy and multi-asset trading account funded by the investor,
and traded by our trading algorithms. This allows the investor a reasonable and controlled rate of return on an
account he/she does not necessarily have to trade himself. In contrast to mutual funds (which are
professionally managed on behalf of many mutual-fund holders),our systematic managed accounts are
mechanical, fully automated, with no personal bias involved and adjustable to risk profiles.
We offer managed accounts over US ETFs, US Stock Index Futures, US Commodity Futures, Indian Stocks and
Indian Stock Futures. There are some pre packaged programs which clients can use rightaway (see Appendices)
Benefits
• Expert management: Quantitative Algorithms run and trade your portfolio
• Tax management: Direct ownership of your holdings lets you address specific tax situations, such as
harvesting capital gains or losses.
• Scalability of Operation
• Ongoing relationship: Work with us to develop your investment plan and periodically review your
account and performance reports.
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7. About the company
Prophecis is an outsourcing company providing customized development of algorithmic trading
solutions, trading strategy research, expert consulting, and technical support services for all commercial trading
platforms like Quant house, Tradestation etc to hedge funds, proprietary traders, and advanced individual
traders.
We specialize in the objective design and implementation of fully automated trading systems and advanced
technical algorithms which helps you to make trading profits systematically.
The firm is run by IIT, ISB and Imperial College alumnus with over 100 man years of experience working with
algorithmic trading units of HSBC, IndiaBulls, Morgan Stanley and many more reputed firms in the space. Our
solutions help increase trading profits to 15 specialized large/medium scale funds .
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8. Contact Us
Prophecis Analytics and Consulting Private Limited
910, 9th Floor, DMall, Netaji Subhash Place,
Pitampura, New Delhi 110034
Monica.s@prophecis.com
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