Our Focus

We are active participants in the movement towards more advanced equity risk control and risk based trading strategies. Trading Firms' liquidity demands have raised concerns with Managers of all timeframes - Proprietary Traders, Portfolio Managers, and Institutions alike are equally impacted by the growing need to control and measure risk in an environment characterized by increased volatility, excessive correlation, and ongoing Market risks.

Robustness as a Risk Metric

Traditionally, trading strategies have been based on querying datasets pertaining to the underlying trading instrument. To date, modelers have rejected any reference to strategies operating via non-coherent metrics or through the non-linear propagation of information. No efforts are made to evaluate the information theoretic capacity inherent in these financial systems. A new paradigm is required to develop more viable risk control strategies.

Our company, Bumblebee Capital, uses an advanced framework to develop innovative trading strategies that are more robust and profitable for a given risk. Our strategy framework is informed by a new body of research that builds on aspects of the ecological framework. As an example, Ulanowicz and Lietaer’s (2009) paper, "Quantifying sustainability: Resilience, efficiency and the return of information theory" illustrates the connection between the development of a viable economics and that of ecology. The paper defines robustness as measured by information theory. This approach offers new insights into systems evaluation, and the possibility of new trading strategies and risk control metrics.

Disclosure:

The information contained herein may not be reproduced, quoted, or published without the prior written consent of Bumblebee Capital Management (BCM). The opinions expressed are solely those of the author / developer. No guarantee is made with regards to the accuracy of information created herein nor from the sources external to BCM. Any opinions expressed herein are subject to change without notice. BCM is not under any obligation to update or keep current the information contained herein. BCM accepts no liability whatsoever for any loss or damage of any kind arising from assumptions made from our data and/or analysis. Performance data represents past and/or theoretical performance and is not indicative of future performance.

Note that the authors / developers may hold positions in the equities, funds, options and other financial derivatives mentioned on this site and in other related materials. We are not a licensed broker or investment advisor. This is not a solicitation.