Maximize Expected Returns
while controlling Risk

Generate the best strategy to express your view and maximize your expected profit while meeting your risk constraints throughout the trade lifetime

Subscription decision-support software for portfolio managers, risk managers, analysts and traders


  • Optimizer

    What’s the best strategy? We believe it’s the one that maximizes your returns if your equity prediction is right, while at the same time managing your downside risk in case your prediction is wrong.

    Subject to your inputs and market data, the Optimizer evaluates every possible way of putting on a multi-leg position, using the equity and its options chain. It evaluates every combination of underlier, put and call option, in every quantity, going long or short, and finds the best strategy: customized to meet your specific needs.
  • Your Equity Prediction

    Where do you think the equity is going to be trading? How bullish, bearish or neutral are you? How confident are you? What are the chances of events occurring that will change the outcome?

    Tradelegs’ equity prediction editor lets you express very simple views (e.g. “I think the stock will drop 5% to 15%”), or enter a full decision tree with conditional events and outcomes.
  • Your Capital and Risk Constraints

    How much capital can you use to carry this trade? Do you want a strategy that is cash neutral or that generates income?

    What range of outcomes do you want to hedge? What’s the worst loss you are willing to see on a mark-to-market basis through the trade lifetime, or to realize on exit?

    Tradelegs lets you layer on these and many more constraints to shape the trade to your exact specifications.
  • Options Volatility and Liquidity Analytics

    Tradelegs supports both options experts and options novices.

    Don’t have opinions on options volatility or liquidity? No problem: using Tradelegs, you can easily identify options strategies to protect yourself from wide swings in volatility, and ensure that you can both enter into and exit from trades safely.

    Options expert? We provide you with the tools to guide the options analytics, and to leverage your skills and experience.

Case Study Overview

Case Study Disclosures and Disclaimers

The case studies provided here compare positions generated by a portfolio manager or analyst (the “Reference Strategy“), as described to Tradelegs by the portfolio manager or analyst or available in publicly accessible materials, with positions generated using the Tradelegs system (the “Tradelegs Strategy“, “Tradelegs Optimized Strategy” or “Proposed Strategy“). All positions in a given case study were based on the same predictions and constraints, and both the Reference Strategy and the Tradelegs Strategy were evaluated under identical conditions, using back-tested, marked-to-market pricing values and the same slippage assumptions.

Although the results described in the Reference Strategies are in some cases based on actual trades, Tradelegs does not and cannot have complete knowledge concerning those trades, including but not limited to exactly when each position described in the case studies was entered and exited. Such information might affect the results achieved by a Reference Strategy. In some cases, the Reference Strategies are not based on actual trades, and so all inputs were hypothetical.

None of the results for the Tradelegs Strategies represent the results of actual trading. The positions described in the Tradelegs Strategies were not executed.

In some cases, the results presented for the Tradelegs Strategies were generated through specific inputs to Derivatives Strategist provided by a representative of Tradelegs, while in others the portfolio manager or analyst who generated the Reference Strategy provided inputs to run on Derivatives Strategist to generate a comparison to his original Reference Strategy. When Tradelegs provided inputs, they were based on Tradelegs’ assessments of the applicable portfolio manager’s or analyst’s predictions and risk tolerance, among other factors. These inputs may not accurately reproduce the manager’s actual predictions, risk tolerance, or other assessments, and they may not correctly reflect the inputs that would have been entered by the portfolio manager. Other inputs may have achieved less successful results.

These case studies are for illustrative purposes only. They are not representative of the results that any particular user of Tradelegs has achieved or will achieve. Users of Tradelegs have had, and are expected to have, materially different results from the results presented here.

The results provided here may not reflect the impact that material economic and market factors might have had on a manager’s decision-making, or on a hypothetical manager’s decision-making, if the manager were actually managing clients’ money.

The conditions, objectives or investment strategies of the portfolio managers and analysts whose results are presented may have changed materially during the time period described in these case studies. The results may not accurately reflect any such changes.

All investments, including investments in options, involve the possibility of loss. There can be no guarantee that by using the Tradelegs system, you will experience profits on your investments or minimize your losses.

The case studies provided do not reflect any reinvestment of earnings in the trading described.

The case studies utilize estimates for fees, expenses, and commissions. The same estimates are used for both the manager’s and Tradelegs’ results. The actual fees, expenses and commissions applicable to a manager’s actual trading may have been lower than the estimates used, which would have resulted in better performance results than those presented in the case studies.

Please also see our standard disclaimers here.