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Trading Business Plan - Coggle Diagram
Trading Business Plan
Trading Strategy Processes and Rules
Absolute Time-Series Trading Strategy Components
Exit
Position Sizing / Money Management
Trade & Risk Management
Entry
Top-level Portfolio Management (Multi-Asset & Multi-Strategy)
Draw a Flowchart describing the whole process
Constraints
Max Risk Per Trade
Max Position Size
Max # Positions
Max DD per Month
Assumptions and Constraints
R&D Process (For ATS)
Objectives / KPIs
Target Ann. Volatility
Target Ann. Return
Trading Operation Processes
Cross-Sectional Trading Strategy Components
What kind of strategies/approaches we will use?
Directional (Divergent)
Trend-Following
Momentum
Breakout
Global Macro
Strategic Asset Allocation
Systematic Multi-Strategy Portfolio
ATS from Machine Learning and Data Mining
Cross-Sectional TAA
Tools
Research Analytics
SpreadCharts
StatMetrics
PortfolioVisualizer
Koyfin
News Aggregator
Financial Research Publications
Market Outlooks
Financial Analytics Applications
Stock Screener
Dashboards
e.g. Google Trends
e.g. StockTwits Sentiments
Execution Platforms
Web Platform of the Broker
MultiCharts
Trader Workstation
TradeStation
MT4/5
cTrader
Amibroker
QuantConnect
Other Risk
Liquidity Risk
Technology/Infrastructure
Correlation
Systemic RIsk
Counter Party Risk
Which markets will we trade?
How do we want to trade it?
CFD
Futures
Direct
Warrants
Options
Forwards
Swaps
Asset Class
FX
Commodities
Bonds
Equities
Cryptocurrencies
Alternative Assets
What are the main Fundamental Factors and Biases that impacts the price returns?
Factors
Value
Momentum
Carry
Size
Quality
Mean Reversion
Edges
Intermarket Relationships
Bookkeeping/Auditing
Historical Trades
Performance Statistics
Create a spreadsheet and columns to include.
Create another table for performance statistics.
Build Databases
Objectives/Goals
Expansion Plan
Building track record to start a hedge fund and get investors
Use the track record as a way to get inside a proprietary trading firm
Use your own cash to purchase the relevant tools
Milestones and Deliverables
Time Horizon Expectation
Timeframe
Expected Trade Duration
2 weeks to 6 months for Global Macro
Intraday/Intraweek/intramonth for Automated Strategies
Broker
Costs
Trading Costs
Interest Rate
Transaction Fees
Spread
Slippage
Data
Which broker should we use?
Saxo
Interactive Brokers
Pepperstone
CMC Markets
Binance
Dawinex
What kind of trader you want to be? i.e. What's my trading style?
Systematic Manual Global Macro (Semi-Automated)
Contingency Plans
e.g. Drawdown of more than 20%
Business Profile
Initial Capital
Weekly/Monthly/Yearly Routines
MIssion Statement