2014 in the rear-view mirror and a peek at the New Year

I'm back at work after a wonderful trip to the USA that included visiting Wall Street and the New York Stock Exchange. One doesn't have to spend much time on the streets of New York to be awed and inspired. Having said that, there's no place like home and it's great to be back. I hope you got a chance to take time out and enjoy the festivities too.

With 2014 behind us now is a good time to review our performance. Unlike other firms in SA, we publish and discuss the aggregate performance of our clients on an ongoing basis. We strive to be as transparent as possible so that clients can make educated and informed decisions before risking their hard earned money. It's unfortunate that other firms don't do the same; The truth is many would lose their business if they did. We're proud that we lead the industry in this respect, and we're committed to continue to do so.

QuantLab went live in April 2014 with a single client worth R150K. By the end of the year we grew our client base to R2.2 million. During the year our clients completed 530 trades, achieved a winning rate of 64.94% and successfully transacted R50 million through our platform. We're happy to report that every single one of our clients generated positive returns in their accounts by the end of the year. More significantly, our average client outperformed the JSE Top 40 index by +13.5% with lower levels of volatility. Furthermore, we outperformed the average hedge fund performance both locally and offshore. In terms of live trade statistics, we continue to see strong out-of-sample performance across the board, validating our ideas and approach. By every measure QuantLab has been a fantastic success up until this point, and we couldn't be more thrilled. Moving into the New Year, we'll continue to empower our clients with cutting edge technology and research so that they can achieve their financial goals.

Below is a quick summary of our live client performance for 2014. After a difficult month in November, our clients rebounded strongly in December finishing the year up +R106K. Seven out of the nine months produced positive gains, or a monthly winning rate of close to 80%.

Performance 2014

The promise of the New Year brings in some exciting developments at QuantLab, one of which includes a new product that we hope to launch at the beginning of March. Smaller accounts, R5000 or more, seeking to employ a quantified approach to trading will find our new product of particular interest. Finer details will be revealed in the coming weeks, so be sure to stay tuned to learn more. Clients can expect to see improvements across the board in our flagship product, QuantLab, and possibly even additional strategies. One noteworthy change to better align our interests with clients can be seen in our new pricing policy. Provided certain conditions are met, we'll extend our clients a free subscription year if they do not generate positive returns that exceed our costs. In other words, QuantLab makes money only if you make money. No other research firm in SA offers clients a performance pegged payment structure like this. All round we have a very exciting year ahead of us and can't wait to get going.

We wish all our clients an abundant New Year. May 2015 be everything you hoped for and much more.

    QuantLab launch imminent

    We start with the final phase of development this week: integrating QuantLab with the broker. Provided we don't run into any glitches, it's likely that QuantLab will be live and ready for real trading within 6 weeks. When QuantLab is fully functional I will start running weekly webinars discussing the service in detail. Once you've attended a webinar you will be provided with the opportunity to trial QuantLab for two weeks so you can get a first-hand feel of the service. We'll keep you posted with any new developments.

      QuantLab now has a Blog

      We've been hard at work developing and integrating a blog into QuantLab and are pleased to announce that our blog is now finally live. We'll be updating our blog with a variety of interesting articles including new research we're busy with, QuantLab events, information and education relating to QuantLab and much more. You'll be able to follow us across a host of social media environments as well, so you can be sure to stay connected. Until our first article, happy trading.