QTR Invest : QTR Fund

Summary

Within the QTR Fund, we apply proprietary, high-frequency, highly automated trading systems in a wide range of financial markets.

Investment Strategy

QTR stands for Quantitative Trading Research. The core business of the company is developing automated or mechanistic trading systems, of which the main feature is the absence of any human intervention.All systems are bundled in the QTR Fund, trading an extensive range of markets for the short term: the maximum holding period is 24 hours. Only liquid markets are traded, with a strong preference for futures markets. Trading different, uncorrelated systems across multiple markets results in a diversified portfolio.

Risk Management

The contemporary crisis painfully showed that liquidity and market risk should never be underestimated. Liquidity risk, is the risk that arises from the difficulty of selling an asset. Market risk is exposure to the uncertain market value. A hedge fund is said to have market risk when it moves in line with stock markets. The returns of the QTR Fund, especially during current economic downturn, compare positively to other asset classes because market risk and liquidity risk are fully controlled. Returns exhibit a negative correlation to stock markets and as the underlying positions are highly liquid, meeting investors' redemption requests does not pose any problem.On a system level, risk management plays an important role as well. Risk is diversified over different systems and markets in the first place. As volatility of those markets or correlation between them increases, positions sizes are reduced. The risk management system continuously analyzes the portfolio and readjusts positions automatically if necessary.Apart from applying strict risk management principles, one also has to acknowledge that historical data cannot predict all possible future outcomes. Unexpected events can and will happen. To anticipate on this QTR Invest applies a so-called black swan buffer in all its trading activities. By definition, it will be unknown when this cushion is to be used. For example, it could serve to bridge a certain amount time that stock markets would remain closed.One of the special features of the QTR Fund risk management is the breakdown indicator. This indicator tests the predicting power of every system on a daily basis. The development of systems is based on typical market dynamics. If markets tend to deviate from this state, this could lead to a system not operating in its so-called design space. The consequence of this would be a prohibition to take certain positions. The main advantage of the breakdown indicator is the avoidance of unexpected results. As such, overall risk management serves the main objective of capital preservation.