The most important aspect in the management of the fund and the key to its performance is the technology in our trading algorithms. The algorithms handle everything including analysis and forecast of financial instruments, order management, communication with brokers' trading systems, as well as monitoring and risk management. All this is done automatically without any human intervention. For this to succeed, we have exceptionally well-developed and well-tested systems, with redundancy and backup systems that can withstand worst-case scenarios.
All development is done internally in order for us to have complete supervision of all stages of the management process. Significant emphasis is placed on research and security to continually improve returns and minimize, not only the financial risks, but also the operational risks. The reason that we do our utmost to automate the management process is to minimize risks that may arise due to the human factor. An example of how this is done is through the use of artificial intelligence in the analysis and forecasting of financial instruments.
There are both advantages and disadvantages in replacing humans with computers. We believe the advantages far outweighs the disadvantages, especially with regard to computers’ much faster response time and ability to analyze vast amounts of data in a very short time period. Through the use of artificial intelligence, our algorithms have become adaptive meaning that they are able to update themselves and learn from their mistakes, resulting in highly accurate forecasts.
Artificial intelligence is a very broad subject within computer science that includes various technologies and fields of research. Some of the areas that we work with are artificial neural networks, support vector machines, genetic algorithms, etc., and each of these have their own sub-categories of technologies and research fields as well.
Aside from the technology in the trading algorithms, we also place great emphasis on minimizing operational risks that can affect performance. These risks can present themselves in the form of power outages, internet disruptions, and other forms of risks that can cause disturbances to the system. In view of this, our trading algorithms are hosted on computer servers located in the same data centers as our brokers, at Equinix in London and Equinix in New York. To access these data centers physically, one must pass through five security checkpoints, which include manned security stations, mantraps, and biometric readers. Standard for the data centers are uninterrupted power supply with battery and diesel generators during power failures, and internet connections from several internet service providers in the event that an operator should experience disturbance.