JDFX, a Swiss Forex Fund, is preparing for a
re-launch very soon. With $50 Million of capital,
management is enthused about the future. They
have developed a new program with three automated
trading strategies, inherent in which is a revolutionary
trading platform that allows sub-millisecond
trade execution. As a rather new quant firm,
they are attracting significant attention from
the investment community.
CEO, James Pieron, says that his new trading
platform will crunch over 1000 trades per
second combined with a quarter of a million
rates per minute, helping JDFX stand out,
even among the electronic trading global firms.
Using adaptive filters and sophisticated neural
networks, JDFX, with the help of advanced
mathematics, have produced a system that works
in a real-time market environment and gives
the company the ability to react quickly to
changing market conditions. He also claims
that his new system is “bank friendly”,
with three fail-safe procedures that ensure
success.
Using a “triple matching system”,
which only allows a rate execution after obtaining
at least 2 other rates, JDFX is protected
from accessing liquidity providers currently
in an off market status. Another protective
feature assigns every incoming rate a “time-to-live”
parameter, which prevents any attempt to trade
old rates in a slow market. A final system
procedure is the application program interface,
which automatically inserts a new rate available
just prior to execution (the former rate is
deleted) so as to protect liquidity providers
in a fast running market. JDFX understands
this adds raw cost to the company but protects
them as well as their banks in a breakaway
market and is worth the extra expense.
As you might imagine, both banks and other
liquidity providers are very pleased with
this new platform. The fund provides around
$10 Billion monthly for every $10 Million
being managed, which translates to a monthly
move of around $50 Billion every thirty days.
Recent live testing with $50 Million of client
funds with 2X leverage, resulted in a money
move of around $20 Billion and a spread of
approximately 0.634, which was most acceptable.
Currency matches of primary U.S. Dollar pairings
were used, including (Euro, Yen, and Swiss
Franc vs. USD) with promising results. Liquidity
providers, generating increased income on
increased volumes provided, have been impressed
with the projected long-term trade volume
JDFX should enjoy.
With 50% of its budget dedicated to R&D,
this company is totally committed to maintaining
its tech advantage and will continue developing
new trading platforms. They are willing to
dedicate up to ½ of their team to developing
new electronic strategies. Drawing on the
mathematical and IT background of CEO, Pieron,
the economics knowledge of COO, Ohl, and the
expertise of new CIO, Luigi Amato, JDFX is
prepared to use its in house talent to keep
it at the forefront of electronic trading
and development of state-of-the-art computer
trading strategies and profit maximization
plans.
Targeted returns and management of volatility
are always important. With projected returns
in the 10-15% range within a volatility range
of 4-5%, JFDX is projecting success that,
if achieved, will solidify their reputation
in the market. Testing the effectiveness of
their new technology has been intensive and
has produced excellent results to date. JFDX
understands, however, that even the most advanced
technology platforms can never replace serious
research and intelligent investment decisions.
The fund is welcoming new clients now and
has an appetite of around $300 to $500 Million,
with a minimum investment level of $5 Million.
