This FAQ area was created to answer common queries about our products and services. We hope this assists you in understanding what we can offer.
What is the Pegasus Engine?
What makes it so special and unique?
Pegasus is a world class, quantitative research engine. With open and extensible architecture, it allows its users to rapidly create, back test, simulate, stress test and then automate any singular or multiple concurrent trading and investment strategy dynamically. More...
What types of quantitative research capabilities can it accomplish?
The Pegasus architecture offers invaluable capabilities and priceless paradigm shifts. Below are some non-exclusive capabilities.
- Multiple asset classes with ability to define new asset classes.
- Multiple strategy.
- Multiple and variable time resolutions.
- Portfolios of strategies with each strategy running off its own portfolio universe.
- Dynamic strategy cross talk.
- Trade and position risk and money management, strategy risk and money management, and global risk and money management.
- As it happens in real life simulations, shocking and stress testing.
- Fully customizable reporting, graphic and data tie-ins.
- Native and real programming languages and distributable computing capabilities.
Can it be used to automate?
Supports research and automation regardless of investment or trading style or asset class. Below is a non-exhaustive list of quantitative style types. Combinations of asset class and time resolutions supported.
- Dynamic portfolio selection.
- Portfolio optimization.
- Long short.
- High frequency.
- Long term.
- Global macro.
- Mean reversion and stochastic.
- Trend following.
- Asset allocation.
- Fundamental, technical, econometric, catalyst and event driven.
- Manager, fund selection and fund of fund.
Pegasus architecture ensures very little difference between the back test and simulation process and running methods and models forward in real time. In this regard, OMS and EMS, firm order systems and trading desk tie-ins are supported.
Why would a single strategy manager or fund need multi-strategy functionality?
Bets and positions in financial instruments and portfolios are essentially a placement of risk. The name of the game is to fractionalize and diversify these bets among as many non-highly correlated instrument and positions as possible, and thereby achieve consistent and superior non-volatile returns given a chosen level of risk. Whether you work within one asset class or one singular method or strategy, the ability to research a "portfolio of different" methods or sources of alpha is priceless. Simply adding results together after the fact is not a real life simulation, has its limitations and inherent dangers.
How can it serve us in our own efforts for in-house proprietary development?
Even from within the same asset class, fund managers are not limited to one method, one source of alpha/expectation per fund but are often caught thinking in this way. Instead they are free to (given the right tool) to research and run a whole portfolio of methods from within their individual fund and thus open a new universe of performance possibilities. Possibilities that are likely to be far less homogeneous to the industry competitors and far less likely to be mimicked and breakdown in the future. If you are interested in multi strategy in the same asset class or numerous asset classes then all the more possibilities.
Self limiting thought is usually the first barrier to overcome.
The IT and programming individual, staff or departments supporting your fund managers, traders, quantitative scientists may be world class developers by most measures. This unfortunately does not necessarily provide experience and understanding of what to create or certainly how to design it correctly. It usually takes a very unusual skill set and lifetime of experience to create a truly unique research platform and capability.
How can it help risk management efforts?
Given a world class "quantitative template" the creative and scientific parts of quantitative processes can begin rapidly and flourish at your firm. The open architecture means that firms and departments can take Pegasus in new directions and grow it as their needs and complexities change and evolve.
Risk management is often treated as a separate, independent process governing the fund managers, strategies and traders under its authority. It does so as an independent, after-the-fact, text book umbrella process and often is never tested, simulated or researched alongside those processes it is supposed to manage, control and limit with its algorithms. Sometimes the end result has unintended consequences.
How does it leverage IT, programming and development?
IT and programming staff learn some very valuable lessons, processes and paradigms that will carry forward with respect to their skills, knowledge and influence all quantitative development moving forward.
How does it leverage and provide value for my own career?
Use and understanding of our engines open up new paradigms of quantitative capabilities and processes. These experiences, knowledge and new skills will increase your professional value following you where your career and new pursuits take you.
How can I find out how it might assist me, my department and my firm?
Given the vastness of capabilities and applications, it's hard to specifically address everyone's role or area with a one generic paragraph.
Tell us a little bit of your role within a firm, your firm's role in money management, investment style, structure and how its quantitative efforts are conducted. We will try our best to respond in a timely manner and how we might add significant value to your research efforts.