The service comprises a financial trading platform that utilizes an innovative algorithm to outperform the market in the medium-long term. The system merges the trading algorithm with complex financial data-mining techniques and a real time trading interface allowing the client to achieve high yields with little interaction with the system. For those looking for more hands on approach our system allows to customize the trading preferences that affect the algorithms behavior. Institutional clients will be allowed an even greater degree of customization, tailored to meet their risk preferences, duration of investment and branch exposure to the market. The leading concept incorporated in the trading algorithm is Valuation. The statistical component of the trading algorithm is used to derive the valuation of each share in the market. The calculation of this valuation is one of the main financial innovations implemented in this service. The system calculates company’s under-valuation e.g. the percentage gap between the share price in the market and the share's value as determined by the system. Valuation is calculated using statistical algorithm which utilizes several information sets:

• 1. Financial performance of the company.
  
  
• 2. Financial performance of other companies in the same sector.
  
  
• 3. Overall performance of the market.
  
  
• 4. Macro economic conditions.
  
  
• 5. Prices of relevant commodities.
  
  

The system ranks the shares according to their undervaluation and recommends purchasing the most under-valued share, subject to predefined constraints to reduce overall risk. Based on the undervaluation of each stock we determine the composition of the optimal portfolio.

Investment Strategies

Our service allows the investor to choose one of three strategies (three generic and one mixed):

• 1. Long only - all of the portfolio is invested in long positions.
  
  
• 2. Market Neutral - 50% long positions and 50% short positions.
  
  
• 3. Short only – for the ‘bear’ investors only.
  
  
• 4. Mixed strategy - composition of two former strategies in given percentage.
  For example, semi-bullish strategy can be achieved with mix of 50% of long only strategy and 50% of market neutral. Overall exposure of this strategy will be 75 long and 25 short.

Whichever strategy is chosen additional safeguard parameters are added to optimize portfolio performance and minimize the risk. Additional sets of parameters make sure there is sufficient diversification in the portfolio between different sectors.