algorithmS based trading activity (PROFESSIONAL STOCK TRADING – AT CD GROUP)
The Professional Stock Trading group is a highly skilled, well qualified team, having rich experience in design, development and deployment of multi strategy quantitative techniques, which are totally automated, totally logical and study based, are capable of exploiting the volatility in any market, with minimal risks, swift trade execution and thus are capable of large scale trading operations, with severe risk management and generating relatively safe returns on the capital deployed by the company.
CD group brings a scientific approach to trading financial products. So, we proudly say, it is “100% logic”. Automated arbitrage strategies are deployed effectively, to exploit the price differentials between two related markets / products, these differences do arise for micro seconds to some seconds, and with effective algorithms deployed, the group tries to exploit these opportunities to the fullest.
Also, alpha generating algorithmic / quantitative strategies are scientifically designed. First the historical market data is analyzed, financial models based on such scientific analysis are designed and developed, these financial models are validated and back tested in a robust back testing / simulated environment, and upon successful back testing, these models are deployed in live markets to generate trading returns through high frequency trading.
Thus, such multi strategy quant concepts are used across products like equity, equity futures, equity options, currency futures, currency options, commodities futures, commodities options and across markets, to consistently generate risk free trading returns.
Technology infrastructure plays a very important role to support these algorithmic trading activities; needless to say, the group has strong focus on low latency trading technology, state of the art trading infrastructure, and is constantly evolving and upgrading technology / infrastructure in this space.
Adequate Capital also plays its part, in order to exploit such opportunities on a large scale, CD group has always been financially strong, and has sufficient capital deployed on stock exchanges, in order to enable this group to do such algorithmic trading activities on a large scale.
The current set up of this Algorithm Based Trading Group
Active trading and at the same time, risk free trading, was the brain child of Parashar Patel, his entry into this financial markets field was due to this passion of his, and needless to say, he started this journey all by himself, and gradually the team was built, around him, under his constant guidance and encouragement. Parthiv Mahadevia is assisting Parashar in this group. Both Parashar and Parthiv, have more than 20 years of relevant trading experience, and even today, they both are hands on, involved in the day today trading activities, even though the nature of these activities have changed, computers and algorithms have taken over, but the aptitude and zeal for trading remains the same.
Under the leadership of Parashar as well as Parthiv, a compact and skilled trading group has taken shape, this is already a stable, skillful, experienced group as a whole, where the skills and strengths of this group complement each other.
The Strategy / Quant Team
The quant team is mainly from IIT educational background, experience ranging from 3 to 8 years of relevant algorithmic / quant based experience. Their role is to envisage and build quant strategies, analyze historical and current market data, build and develop algorithms, financial models, test them in simulated environment and deploy in production environment.
Infra team comes from relevant computer science background in engineering field, rich relevant experience of 8-10 years, building low latency infra, managing and optimizing infra as well as trading platforms, integration of quant strategies with trading infra in an optimized manner.
Computer Hardware and Networking Team
This team consists of individuals, with relevant engineering qualification and rich relevant experience of 10-15 years, managing computer hardware and software, networking and connectivity and providing optimal and un-interrupted networking services to the group.
The trading team has rich experience of trading Indian markets, experience ranging from 12-18 years, actively trading markets. This team is responsible for actively monitoring day to day strategy / algo executions, deciding when to scale up trading or scale down trading, based on trade monitoring, PNL monitoring, RMS monitoring, and managing the algo trading activity based on capital allocation given.
To summarize, the trading environment at CD Group is competitive, with positive energy, under the hands on monitoring style of Parashar and Parthiv, the team is constantly encouraged to create new ideas, enough time is given to stabilize logical ideas, quant team is encouraged to perform with the help of each other, experience is shared and the team is nurtured to succeed and excel.
What differentiates Professional Stock Trading at CD Group with others is that the top level management comes with enough relevant trading experience themselves. They are happy to involve fully with the team, there is constant discussion, ideas are optimized, constant feedback on live performance is shared, so that new ideas develop and existing ideas can be optimized. While at other places, quant team is given the mandate and expected to perform, but rarely they will find such a combination, where top level management is actively involved, top level management have been successful themselves in trading activity, and there is a tremendous value addition by mutual discussions, sharing of ideas, opportunities and thus taking such unpredictable and erratic financial markets head on !
With a history of being successful, being consistent, being able to change with times, this group has a very bright future ahead.
The journey till date has been truly enriching. The focus in such unpredictable financial markets, has always been on Proprietary Trading, using own resources, own infrastructure, own skill sets, and thus, betting on own confidence, trying to capture opportunities in such markets.
The Algorithmic Stock Trading Group (earlier Professional Stock Trading Group), under the able leadership of Parashar Patel, has “seen it all, done it all and conquered it all”.
Starting arbitrage activities when there were vibrant regional exchanges with weekly settlement systems, each exchange settling trades on some different day, there were geographical arbitrage opportunities prevalent due to such market microstructure. Then came daily settlement systems in capital markets, as a result, the regional exchanges lost their advantage and gradually became defunct. Robust exchanges with national presence remained vibrant and all the trading activity shifted to such exchanges, new opportunities like BTST (Buy today sell tomorrow) etc were born due to such a scenario. Then derivatives segment was introduced, index futures, stock options, index options and finally stock futures were introduced. The derivatives segment, gave rise to time based arbitrage opportunities. Gradually, Algorithmic trading was allowed by SEBI, concept of co-location, tick by tick data and so on; thus, infrastructure also started playing a major role in trading / arbitrage activities. Now, artificial intelligence and machine learning are playing a major role to gain a competitive edge in markets.
To summarize, the market microstructure keeps on changing, professionals who are trading enthusiasts have to constantly keep on learning, upgrading skills, implementing new ideas to keep up with the dynamic financial markets.
The very fact that at CD Group, we have always been on top, always been consistent and always been successful is that we have anticipated the changes, understood the changes and have upgraded constantly based on the changes. We have this confidence now; we shall always be successful in transforming challenges into opportunities.
We want to see our Algorithms based professional stock trading group as a group of engineers, scientists, mathematicians, physicists constantly solving financial problems and evolving as a team, in these complex financial markets.
We are always seeking able scientists, physicists, engineers, mathematicians, who are never tired of data crunching, developing and evolving financial models, strategies to capture mis-pricing in markets, constantly innovating, those who always think about trading, dream about trading and live for trading, but with “100% logic”.
CD Integrated Services Ltd. 2005 All rights reserved | SEBI SINGLE REGISTRATION NUMBER: INZ000190932 | NSE SEBI Registration No. Cash Segment: INB-231094237 |
NSE SEBI Registration No. F&O Segment: INF-231094237 | NSE SEBI Registration No. CDS: INE-231094237 |
BSE SEBI Registration No. Cash Segment : INB011094233 | BSE SEBI Registration No. F&O Segment : INF011094233