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Products

  • AlgoQuant
  • Quantitative Trading Models
  • Risk Management System
  • Risk Factors
  • Risk Models and Extreme Risks
  • Trading in China
  • supercurve China Bond Analytics
  • nm fintech logo NM FinTech's Other Products and Services

AlgoQuant

AlgoQuant is the core and foundation of all NM FinTech’s products. It is a large collection of modules that you can use to build your own trading strategies, bots and systems. AlgoQuant is built around a fast event driven simulator, on top of which we have developed many tools and quantitative models. There are tools to do data cleaning, backtesting, data analysis, strategy optimization, pretty reporting and etc.

AlgoQuant is a large Java library of financial analytics. You can call the APIs to build a trading system by, e.g. replacing the simulator with real exchange APIs. AlgoQuant comes also with source code so it is not a black box. You can be fully confident of the control and reliability of the software. You can modify the code to customize for your purposes.

AlgoQuant is an essential toolbox upon which you can leverage on to build your trading and trading research infrastructure. Not only does it greatly speed up your development, but you can be assured that your infrastructure is being looked after and maintained by an experienced and professional quant IT team.

Quantitative Trading Models

Every year the academic publishes a lot of articles on wealth management and trading. They are long term of life-time work of some very brightest minds in the field. Some ideas can be very useful in trading. Some prominent historical examples are: Markowitz portfolio optimization theory, cointegration. However, these papers are often inaccessible to practitioners. They are usually written for a small community for peer review, not for general public reading. Most traders do not have a Ph.D. to understand the doctoral or research-level very advanced mathematical theories. Even if they do, they often do not have the time to code and to reproduce the algorithms to try them on own data to verify the results and to assess the feasibility of applying the new theories on trade. Many of the otherwise profitable trading ideas are therefore gone unnoticed.

We survey a lot of literatures from top journal papers and code them up in AlgoQuant to add them to our library of financial analytics. Traders no longer needs to understand all the nitty-gritty of the mathematics. They just need to understand the introduction and conclusion of a paper. They can immediately call our library to apply the new and most advanced algorithms on their data and, if need, make modifications. Over years, we have collected a large number of financial algorithms, including, but not limited to, portfolio optimization/asset allocation, trend following and mean reverting strategies.

We have an extensive collection of algorithms to do portfolio optimization, way beyond the classical Markowitz theory. We have many different ways to estimate expected returns and covariance matrices. Our SOCP solver can handle millions of constraints in reasonable time. We can deal with inherent uncertainities in input parameters. We have models to deal with regime switch and extreme risk. All these make your portfolio construction and optimization more robust and higher expected return-to-risk ratio.

Risk Management System

NM Risk Management System (NMRMS) is a web application for constructing quantitative equity portfolios by drag-and-drop. No programming is needed. The system automatically builds a linear model from your inputs such as stock universe and factors. You can choose from a number of advanced models to estimate returns, covariance matrices, and to do portfolio optimization (from simple Markowitz to advanced SOCP to handle millions of constraints). The system simulates your model over historical data, and generate pretty backtesting and risk report. NMRMS is an easy and highly customizable tool for you to do factor analysis and quantitative equity risk management.

You can choose to use the system on our server, or to host it securely on your own infrastructure. It also comes with source code that you may customize for your needs.

Database of Risk Factors

We provide a daily-updated, professionally maintained comprehensive database of risk factors for both the US and Chinese companies. They include market factors, fundamental factors and macro-economics factors. They are suitable to build both fundamental and economic models.

For the US companies, we cover the listed stocks in major exchanges and OTC markets back to 2000. For the Chinese companies, we have 250+ risk factors for more than 3500+ public trade stocks in Shanghai and Shenzhen exchanges.

We continue to add more proprietary risk factors to our database from more sources, such as using data mining techniques on big data to extract useful infomation.

Risk Models and Extreme Risks

PolyModel is a sophisticated non-linear quantitative model for risk measurement. By taking more than 100 market factors into consideration, PolyModel runs simulations on various (stress) scenarios including rare events such as “Black Swan”. It is designed to predict extreme risk and navigates you through crises. PolyModel is a statistical analysis of market dynamics. It can help you assess potential and even hidden risks to maximize your expected return.

Multi-Regime Portfolio Optimization optimizes portfolio return-risk ratio not just in one regime as in classical theory. It does asset allocation by considering and weighing multiple regimes. Possible regimes are identified by using market evolutions history. We simulate the possibilities using Markov Chain Monte-Carlo (MCMC) over a certain period of time. Value at risk (VaR) of many virtual portfolios are calculated.

Trading in China

China is one of the fastest growing financial market. There are a lot of opportunities for those looking for alternative investment. However, foreigners often find it difficult to navigate thru a myriad of local challenges. With more than a decade of experience in the automatic trading business in China, we can help customers set up the local operations smoothly and swiftly. We can advise on areas such as regulations, trading rules, brokerage firms and best fees, data vendors, trading platform and API, co-location and fastest connection, connections with top traders.

supercurve

Super Curve for China Bonds

Super Curve is probably the best China bond pricing system. Although, in China, the bond market is orders of magnitude bigger than the equity market and is the primary financial market, China bond market is still at its infancy. China fixed income IT and systems are rather primitive. There is no accurate enough bond pricing system that is publicly available.

Our Super Curve, with a core engine built on top of our proprietary zero-coupon yield curve construction, is arguably the most accurate yield curve for the Chinese market. We have tackled the problems unique to the Chinese market, such as illiquidity, bad data. Super Curve has the technology to provide real-time yield curve, which is the state-of-the-art technology in China if not the world.

nm fintech logo

NM FinTech's Other Products and Services

Starting with a one-man team coding a math library (now NM DEV) from a bedroom in London, NM FinTech now has a portfolio of products and services. Our team now consists of experienced PhDs and world-renowned professors. Our wide ranage of expertise and years of industrial experience can help you in many aspects of quantitative research: financial engineering, trading strategy, artificial intelligence, asset allocation (portfolio optimization), statistical modeling, High-Performance Computing (HPC).

Our experience in HPC architecture design, deployment and optimization helps clients to leverage on grids of our supercomputer infrastructure for strategy development, back-testing and trading. Our past cases include: high-dimensional strategy optimization, implied volatility surface pre-computation and high-frequency data processing.

We are also your one-stop-shop to set up a trading operation in China, in the areas of regulations, trading rules, brokerage firms and best fees, data vendors, trading platform and API, co-location and fastest connection, connections with top traders. Our all-in-one trading platform enables you to code up your strategies quickly to trade multiple products on multiple exchanges.