algotradesystems.com summary business plan (2)

7/31/2019 AlgoTradeSystems.com Summary Business Plan (2)

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AlgoTradeSystems.com Business Plan

Executive Summary

AlgoTradeSystems.com is an internet-based high-end platform connecting its own advanced

quantitative trading expertise with the fast-growing retail trading community dealing with

any possible combination of asset classes, frequencies and risk/return profiles.

AlgoTradeSystems.com aims to change the way individual retail traders participate in the

High-Frequency-Trading (HFT) field as well as improve their comparative disadvantage as

opposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com will

provide a variety of in-house trading strategies and techniques in any possible liquid security

thus improving HFT portfolios performance subject to the risk/return profile of each

particular investor. AlgoTradeSystems.com will also offer online access to quantitative tools

and complete black-box systems concerning efficient risk management, optimization

procedures, data mining, sentiment analysis and plausible forecasts on the back of a

continuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.com

will administrate investment forums and chat rooms on relevant topics of interest as well as

provide educational material including tutorials, books and papers for a better

understanding of the HFT business. All the services before mentioned will be available for

purchase through safe online payment routes that will allow the company to generate profit

based on its growing community.

Algorithmic and High-Frequency-Trading have both met an impressively rapid growth in the

latest years because they provide a scope for greater performance scores than any other

classic trading rationale. They eliminate overnight market risk, better benefit from

instantaneous market liquidity imbalances and short-term inefficiencies as well as exploit

the potential of leverage across asset classes simultaneously. The proportion of equity

orders volume done by HFT accounts in the total trading volume in the US and Europe equity

markets has been impressively rising since early 2000 and now accounts for more than 50%

across active exchanges. The number of major financial institutions investing in HFT

technology and talent is remarkably growing as well with major players being Renaissance

Technologies, Getco LLC and Citadel LLC whereas the legal and regulatory environment is

being increasingly refined in order to avoid any potential adverse market impacts.


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1.1 Mission

It is AlgoTradeSystems.com's mission to provide retail individual traders with the most

comprehensive Web-based HFT interface available. The platform will be constantly updated

and modified according to the retail HFT communitys needs and suggestions in addition to

its own developers ideas and breakthrough concepts. AlgoTradeSystems.com is committedto offer first-class expertise, first-class quality, first class service and first-class company

image while making a fair profit for its employees and investors. With a solid long-term view

about the companys growth over time along with the confidence on its personnels

experience and competence, AlgoTradeSystems.com is ready to professionally face any

upcoming challenges in this swiftly expanding business.

Initial seed capital for AlgoTradeSystems.com is required in order to account for the set-up

and maintenance of both hardware and software requirements, the initial marketing costs,management fees and legal-related costs. AlgoTradeSystems.com will require heavy first and

second round funding in order to robustly develop and efficiently market the Web Sites

potentials.

1.2 Keys to Success

To succeed in this business AlgoTradeSystems.com must:

Differentiate the Web-based HFT interface from all others with similar services andproducts

Provide robust and steady returns over time on the structured quantitativeportfolios

Provide easy access and user friendliness concerning the first-class quantitativepackages structured by the development team

Create a significant and flexible community of individual retail traders that will bethe grounding of a long-term relationship between the company and the public

Effectively communicate the wide variety of AlgoTradeSystems.coms quantitativetools and services to non-professional traders willing to participate in the HFT

industry


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1.3 Strategic Advantage

Main Competitive Advantages of AlgoTradeSystems.com as per below:

Trading Activity across liquid assets (not just FX or Equities) Structuring portfolios out of efficient strategies adjustable to all combinations of

risk/return profiles

Highly skilled and experienced quant team for the main product development Extensive technological knowledge in the fields of cloud computing and software

development

HFT Trading system already developed and modified in Matlab and C++programming environments thus ready for incorporation into the main business

servers concerning publicly available quantitative tools packages and data sharing

Experienced strategic partners with backgrounds in the technology, consulting andsecurities industries

1.4 Objectives

Alpha and Beta testing of Web-based platform, January 15, Year 1 and May 15, Year1 respectively

Complete negotiations with brokerage firms for initial deployment of tradingplatform by June 1, Year 1

Secure First-Round Funding by June, Year 1 Web-site available to public beginning June 1, Year 1 (without online trading) Online trading and quantitative tools available on the Web-site, beginning

September 1, Year 1

Sign up 100 members and 3 brokerages by Q4, Year 1, and another 150 members byQ4, Year 2

Achieve revenues of $100K by year end, Year 1, and another $150K by year end,Year 2


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1. 60% of shared trading activity (Trading Strategies)2. 20% of Brokerages Commissions3. 20% of Quantitative Packages Renting

AlgoTradeSystems.com international public company by year-end, Year 3

1.5 Funding Structure

Start-up Requirements

Start-up Expenses (For Two years of Business)

Legal $25,000

Stationery etc. $2,000

Brochures $1,000

Consultants $10,000

Insurance $2,000

Research and development $500,000

Expensed equipment $25,000

Total Start-up Expenses $565,000

Start-up Assets (For Two years of Business)

Cash Required $100,000

Other Current Assets $0

Long-term Assets $50,000


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Total Start-Up Assets $150,000

Start-up Funding

Total Start-up Expenses to Fund $565,000

Total Start-up Assets to Fund $150,000

Total Start-Up Funding $715,000

Assets

Non-cash Assets from Start-up $50,000

Cash Requirements from Start-up $100,000

Additional Cash Raised $0

Cash Balance on Starting Date $100,000

Total Assets $150,000

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $0


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Capital

Planned Investment

Packages of $20 Kper Investor

Total Planned Equity Investment $715,000

Revenues $250,000 ($100,000 - year1 + $150,000 year2)

(Start-up Expenses) ($565,000)

Depreciation of fixed Assets ($40,000) = ($50,000 - $5,000 - $5,000)

P&L for the two years $360,000

algotradesystems.com summary business plan (2)

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