Our Methodology

The methodology for trade selection and portfolio allocation is based on our quantitative investment and risk management process that will enhance the performance, scalability and predictability of an investment management activity.

Why Us?

In any competitive market environment it is essential to have an Industry leader as your partner. BLU Financial Systems™ is your financial systems solutions partner with a proven track record, professional experience and the technical expertise to ensure your success. more

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BLU Money Management

The BLU Trading System is combined with a money management model based on the Risk Capital concept. The model controls the share of capital that should be exposed to trading, defined as “Risk Capital”, which is a share of total capital available.

The larger the percentage of capital at risk on each trade, the higher the chances for the risk of ruin. Risk of ruin is the probability of incurring capital losses to the point at which trading is not viable anymore. It is the maximum loss that can be sustained. Risk capital per unit is determined as worst-case scenario loss. Risk Capital allocation can be constant or dynamic within a trading strategy with variable scaling. Mark-to-market losses deplete the Risk Capital, and force scaling down of the trading position.

The optimal Risk Capital is determined through a Montecarlo or historical simulation.

Financial Products

Our Nikopolis system provides a fully featured Front Office derivatives pricing and risk engine, covering the full range of capital markets instruments including swaps, caps, floors, swaptions, bonds, bond options, deposits, FX, futures, FRAs, options, and even exotic options ... more