QuantLab offers you the most comprehensive database of professionally quantified or statistically validated trading strategies in South-Africa. With over 30 000 strategy variations designed across multiple timeframes, long and short directions and strategy types, you can easily tailor-build a diversified portfolio that meets your objectives.
Our strategies are supported by testing across more than 50 000 securities from the global financial markets and validated by over 14 million simulated trades on the JSE. We employ simple and robust rule sets as well as limit the number rules in all our strategies to avoid over-optimization. Additional evidence of the validity of our ideas can be seen in the continued positive performance on out-of-sample data, further boosting confidence in expected future performance.
We develop our strategies within a rigorous academic framework for use in our independently owned hedge fund where our methodologies are currently deployed in live trading environments to manage client funds. After enjoying tremendous success in the international markets we brought our ideas back home to the JSE. Private investors can now for the first time gain access to our hedge fund quality research and development.
Our philosophy is grounded on the bedrock of science, in particular, behavioural finance. Behavioural biases are well documented in the markets, and proven in many instances. Human emotions like fear and greed often result in irrational and illogical decision making by market participants. It's these emotionally driven decisions that creates temporary mispricing's in stocks. We uncover and trade these opportunities by employing a pure data-driven approach, relying on statistics and math's to guide our decision making. This allows us to cut straight through the very human emotion that creates these opportunities in the first place. Our objective stance means that we do not rely on human opinion, news services, gut feeling and we certainly don't rely on chance.
QuantLab provides quantified solutions to exploit the markets tendency to revert to the mean after moving strongly in one direction. Two basic human emotions - fear and greed - affect investors' and traders' decisions. Investors tend to become overly optimistic or overly pessimistic based on immediate past price history. For emotional reasons, prices expand beyond equilibrium and eventually revert to the mean and then expand beyond the mean in the opposite direction, constantly oscillating back and forth with excessive investor sentiment. We seek out those periods that price has expanded excessively beyond the mean, and then take positions counter to the short-term trend in anticipation of price reverting to an equilibrium price.
- 32 800 professionally backtested strategies
- Tested on over 50 000 securities from the global financial markets
- Supported by over 14 million simulated trades on the JSE
- Out-of-sample confirmation since 2011
- Strategies successfully employed to manage client funds in an offshore hedge fund
- Grounded in the principles of behavioural finance
- Exploits the well-known tendency for the market to revert back to the mean
- Removes the destructive effects of human emotion