Quantitative Trading Model Consulting

We, at Silver Lake Consulting, work with independent traders and funds as well. Our work falls in two ways categories:

• Either traders come to us with an existing trading model that requires backtesting, analysis of its validity, or additional development;
• Or, traders come to us with a broad idea for a trading model without doing any research or academic literature in the area. They don’t have any historical data for backtesting.

In the first case, traders may fall into some pitfalls during the creation of trading systems such , as data snooping or excess mining. This can cause the backtesting results to be highly inaccurate. Our statisticians and finance theorists do backtest such models in a robust manner. Moreover, we also work with traders to analyse the face validity of their strategy to examine any possible improvements (which is often to remove components of the model, rather than to expand it) and assist them in deciding if the system could be profitable in the long-run or not. In the second case, we assist traders to convert their broad idea into a trading model which meets their specifications. Firstly, we research previous work done with similar models, and then develop (a priori) the parameters of the trading model that will optimally realize the initial idea. This may involve collection of data for backtesting the model (we have extensive historical databases in-house), and then analysis of the results of that backtesting. We strive to improve the probability of success for robust models. Silver Lake Consulting guides its clients through the process until the model is concluded as either operating in real-time, or deemed unprofitable. In the latter case, we examine options to update or re-specify the strategy in a robust way to potentially make the trading model viable. Our theorists have extensive experience in quantitative trading model analysis and survey development, not just via their Wall Street backgrounds, but also in the world of academic research. They have the quantitative tools required to assist you in building a mathematically-sound trading system.

Confidentiality

We understand the significance and necessity of confidentiality of our clients. We sign a Non-Disclosure Agreement with our clients, immediately upon contact. This ensures the security of your information from any third parties.