Source: 4th Story
4th Story has introduced new portfolio features to its leading automated trading strategy platform to address real-world operating conditions such as cross-strategy risk management and optimization and portfolio-based investing.
Strategies developed and deployed on 4th Story's sophisticated platform can now track the performance of other strategies as they make their investment decisions. For example, when a specific trend following strategy gets a buy signal it can first check on the P&L and positions of all of the other trend followers currently running to decide on its order sizing. This feature is available in both backtest and real time modes, so trading strategists can backtest the effect of different sizing techniques on the overall return of their portfolio of automated strategies.
4th Story also added the capability to run portfolio-based strategies, such as investing in the top and bottom ranked securities in a basket, rebalancing periodically. Strategists can use both fundamental and market data to construct models for portfolio-based investing and rebalancing. They can backtest and optimize these across the portfolio, and then operate them periodically (weekly, daily, intraday, etc.) or in real time.
"These new portfolio-focused features, plus the ability to figure in custom margin requirements when sizing orders, are another example of why our customers feel that 4th Story's products are the best on the market in addressing institutional real-world scenarios," said Steve Smith, 4th Story's CEO.