HEDGE FUNDS: This is a fund that may employ a variety of techniques to enhance returns, such as both buying and shorting Futures contract based on a valuation mode. Many things need to be taken care before the funds kicks off. To trade in different markets a fund manager needs to have two or some times three shifts of traders to trade in US, EU and Japanese financial markets which is the proper diversification of the fund. One of the most important factor that needs to be kept in mind is, up to what extent a fund manager can pull the strings or in other words up to what level a fund manager can take the risks.

In hedge funds mainly there are two kinds of risks involved
1- Systematic risk
2- Unsystematic risk

Merits and demerits of these risks are listed below:

Systematic risk is a well-organized risk. That could be in manual trading and also in Automation. In good portfolios there are risk factors involved. Those risk factors are considered being systematic risks.

Unsystematic risk can also be in both manual trading as well as in automation. It is very important to choose the right strategy and the right combination to avoid bigger risks.

StrategyLand can help in choosing the right strategy for fund managers. Fund managers can feel free to contact any time and discuss the risk/reward ratio and the standard deviation of the fully automated strategies. The contact address is sales@strategyland.com.sg.

Automation in Hedge Funds
In the past years, many trading companies have let go traders and assistants from their retail trading operations to hire mostly sales traders for their institutional buildup.
Many of the once mighty wholesalers have simply shut down. Fleet Trading is gone. NDB is closed. Herzog Heine Geduld is history.
The old wholesale model where you had 100 traders and 100 assistants that traded 5,000 stocks is not viable anymore. In automation, StrategyLand’s single strategy can take the load of all those 100 traders including their assistants. As an example, its Scalping strategy gives a great advantage to the companies and individual traders because statistics says, in 1 day a good scalping strategy can trade 200 to 500 times. If the scalp happens on ¾ (0.75) points of S&P that means $37.5 in Buy and Sell after commission, then its net profit would be $15 approx. In 1 week the automated scalping strategy’s profit would be up to $2,000 with an investment of just $4,000. Automation is then no match with manual trading. It cost less and returns more.

Another big advantage of Automated fully automated Strategies in Hedge funds is that now a Fund Manager does not need large offices, saving on the rent. Only few systems are enough to manage 10 million to 100 million’s US$ accounts.

Dr. Lee the most renowned local person in Strategy’s automation in stock exchange says, “The advantages of automation in Hedge Funds are immense. The biggest advantage is, “it is cost effective”, and the investment is better diversified and better equipped to grab most of the opportunities that was close to impossible before the help of robot”.

Detect the spikes timely and react accordingly is the quality of a good robot in trading.
All the trading permutations are fed into a robot to ask him to trade. That gives you the picture something similar to deep blue computer playing chess against Kasparov and giving tough time to human beings.

Savings to be expected in salaries
The lowest salary of a trader is US$1,500/month. To run a hedge fund with an investment of 10million US$ or above requires a minimum of 20 traders to work in 2 shifts in US and EU market for currencies and commodities.
The salaries cost of the traders become over US$360,000 yearly. Besides, if a trader arrives late or got ill or something happened to him/her, ultimately it reflects negatively on the portfolio(s).

Whereas with the help of a software robot, a Fund Manager can save the cost of all these manpower’s, doesn’t require a huge trading room and can use this money all day long in different markets with no human emotions involved. So, as a Funf Manager, join BotTrading TM and experience the highest technology on earth in BotTrader TM .

Example of costs investing in Automation with 1 million US$.

Initial Investment Needed:

1- No trading rooms are required.
2- No trader employee is required.
3- The cost of a BotTrader server is US$ 20,000
4- The software cost is US $10,000
- The rental cost of one fully automated strategy is US$49/month
- An estimated 100 fully automated strategies are required to trade 1 million US$
- US $10,000 margin required for each fully automated strategy
5- Strategy Rental Cost for US $1m investment = 100*49 = US$4,900/month
Overall cost before starting the BotTrader TM is 20,000+10,000+4,900= US $ 34,900

Users of BotTrader™ say, with 100 automated fully automated strategies, a fund manager can expect 20% ROI a year. That means that in less than 65 days a Fund manager can recover all basic costs of the BotTrader .
In conclusion : For every 1 million US$ invested, a Fund manager would require a BotTrader server, the software and 100 fully automated strategies.

Other example if the fund is 5 million US Dollar
Based on the same assumptions than above, then the investment would be US$ 150,000 plus US $24,500 per month of rental cost of fully automated strategies.
BotTrader says, “In less then 65 days the Fund manager can recover all basic costs of BotTrader“.

A good diversified portfolio in hedge funds always secure better results. The best way to diversify the investment is to spread it out in more than one continent of worldwide exchanges. Karma Alternative Global fund lp did realize this fact timely and invested in European and US markets utilizing the same money in more than 16 hours per day.