Thompson Crosby also offers managed services in proven strategies, which are open to new Investment: –
Fixed Income New Issues and Equity Initial Public Offerings (IPOs) and Placings
Thompson Crosby Capital Markets uses its extensive market experience, connections and relationships to gain access to new issues in fixed income. The Firm uses statistical analysis and in-house Traders’ combined experience of over 65 years to evaluate new issues against comparable issues which trade in the secondary market. The Firm then uses its extensive network of blue-chip counterparties to obtain allocation to the appropriate new issues.
The same strategy is utilised for Equity IPOs and placings. Position sizes are adjusted according to overall deal size and liquidity to ensure that each holding meets the clients’ overall risk profile and appetite for risk. We offer this service on a discretionary basis.
UK Contracts for difference (CFD) Program
For clients who prefer a slightly more aggressive approach to trading, Thompson Crosby Capital Markets offers a discretionary trading program on UK Equity CFDs on event-driven news: for example, stocks tend to trade a range ahead of upcoming earnings releases. A list of upcoming earnings releases and trading statements are made available by the London Stock Exchange on the Regulatory News Service (RNS) web site. These results are typically released at 08:00HRS GMT.
Once earnings are released the relevant Company stock will either re-establish its prevailing trend or, if there is a profit warning or other negative news, it may change trends. Using a proprietary trading strategy, Thompson Crosby is able to exploit these short term moves and generate profits in a short space of time. Positions are rarely kept open for more than several days.
The Tesseract Program
The program is based on a proprietary analytical algorithm that assigns probabilistic values to certain outcomes in markets. The model specialises in trading the S&P500 index. Each position has a profit target and stop loss. This product is highly profitable, albeit more suited to investors who are prepared to accept a higher level of risk to generate their alpha. Since inception on February 2019, the program has generated returns in excess of 150%, with a maximum drawdown of 10% from peak equity.
Spot Foreign Exchange Trading
In order to offer clients a diversified set of programs, Thompson Crosby has developed algorithmic trading programs for trading the financial markets. The first product release is for the spot FX market.
The model utilises customised quantitative measurements to determine trade outcomes. Pricing measurements are taken from short-term periods of data that will seek alpha within all types of market conditions. This is done without relying on the traditional technical analysis methodology. Through correctly applied diversification, the program provides a superior way of maximising alpha efficiency with lower risk and volatility in returns.
Since inception in October 2018 the program has returned 16.57% with a maximum drawdown of 3%.