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.

Tradelegs’ Options AI technology and services enable a new generation of systematic strategies. Hedge funds can automatically transform their equity positions with options strategies that leverage their research and improve P&L, even for relatively short-term trading horizons. Financial product partners and institutional investors can create or utilize custom indexes that are both active and non-discretionary, and that dynamically adapt to changing markets. Advanced AI Optimization and Deep Learning are coupled with sophisticated options analytics to identify provably optimal strategies—that maximize expected profit, beat a benchmark, or deliver a desired payout—while meeting defined risk and capital constraints

Systematic Equity Enhancement

Tradelegs services can systematically take a basket of your equity positions or targets, and even your level of conviction. We then automatically generate portfolios of options positions that maximize your expected returns, while adhering to your trading and risk constraints. An example service is to work with process-driven hedge funds who trade relatively short-term horizons (e.g. 1-3 weeks) based on alternative data or market sentiment analysis. With the non-linear payout of options, and Tradelegs Options AI, it is possible to make more money when you are right, and lose less when you are wrong.

Custom Adaptive Indexes

Partner with Tradelegs to create new investment products (e.g. structured notes) that are tailored to client payout objectives, trading and risk constraints. These products can be simultaneously Active and Non-Discretionary: an exciting new category of investment that gives you the best of both worlds and is tax-efficient. Example objectives include capturing maximum S&P upside while protecting against a negative 10% price move, or generating yield while beating a benchmark like the Cboe PUT-write index.