PHILOSOPHY

OUR MISSION

At eminiWorld.com, our mission is to provide Portfolio Managers with innovative absolute return strategies that have the potential to enhance investment portfolios with strong uncorrelated returns through time.

OUR PHILOSOPHY

Our core trading philosophy is that strategies should capture enduring and explainable market participant behavior. We strongly believe in diversifying risk in every way possible. We also think that risk is best controlled by taking a large number of small trades versus making a few large bets on a small number of trades.

We have constructed model development process on five key pillars:

  • Markets are fundamentally inefficient across multiple timeframes.
  • Global liquidity drives market behavior across asset classes.
  • We believe systems outperform discretion.
  • Models must be simple and repeatable.
  • Models must be grounded in experience.
We believe that no short term strategy is ever sustainable. This approach to trading often leads to correlation, through trade concentration and crowding, and contagion when risk cannot be controlled due to market shifts, and the trade breaks down. Similarly, model concentration occurs when traders use the same “algorithms” developed by vendors or banks, either for analysis or execution. At eminiWorld.com we do the opposite, by developing our own proprietary systems and navigating away from crowded trades.
Investors often undervalue liquidity and do not appreciate that illiquid markets flatter mediocre strategies. But at eminiWorld.com we place an unusually high value on liquidity. Good systematic strategies are more likely to be developed around liquid and transparent markets and instruments where there is better pricing and asset allocation can be more nimble.
Our algorithmic strategies have delivered significant performance throughout these last few years of global uncertainty, precisely because our team maintained a very clear focus on system development process including placing a much greater emphasis on risk management.

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