Starfire Capital Management Services adheres to the philosophy of “Science, Stability and Excellence”. The core members of the team have been working together for over a decade and have market-proven trading strategies. They are constantly innovating and optimizing their product lines in equities, futures, options and cryptocurrencies. The team specializes in rapid project iteration, integrated strategies, online and offline processes, and a multi-dimensional “scientific research” approach to achieve efficient strategy output. The team has a strong scientific research atmosphere, a flat management structure, and emphasizes the long-term training of talents. Our strict talent acquisition mechanism has introduced PhDs from different backgrounds, such as biology, mathematics, physics, law, etc., which enhances the lattice effect of the strategy model.
History of Trading Systems
From traditional trading to quantitative trading
Traditional trading relies on traders’ manual judgment and decision-making, and can be considered the initial version of trading. With the advent of quantitative trading, our PPAP Intelligent AI System trading system transitioned to a digital signal-based model, forming a systematic investment framework that directly replaces manual decision-making
Upgrading Quantitative Trading: Introducing Artificial Intelligence
The application of Artificial Intelligence (AI) technology has further upgraded trading. By optimizing algorithms, AI becomes a gas pedal for quantitative trading models, significantly shortening the process of algorithm implementation and trading decisions, thus making the decision-making process more efficient.
PPAP Intelligent AI System: Fully Upgraded Intelligent Trading System
The comprehensive upgrade of PPAP Smart AI system version covers data processing, AI algorithms, risk management, user experience, trading strategies, overall performance and community support. It not only realizes a major breakthrough in technology, but also pays more attention to the actual needs and experience of users, making the trading process smarter, more efficient and safer.
The Value of Information and Strategy Selection
From traditional manual trading to quantitative trading and now artificial intelligence trading, trading efficiency has been steadily improving. Our team highly values the importance of “information”. With diverse backgrounds including traditional traders, short-term volatility traders, long-term value investors, mathematical modelers and other technologists, we integrate a wide range of trading strategies and backgrounds. Our market strategies are based on systematic analysis of market data. Traditional equity traders focus on timing and selecting appropriate entry and exit points to maximize returns. Our Artificial Intelligence Super Profit product line balances high return and risk control strategies with embedded product information to protect against market volatility.
Product line diversification and optimization
Starfire Capital Management Services is dedicated to balanced asset management in equities, options and cryptocurrencies. Each direction has one or two specialty products. High-frequency trading strategies are not a major category, although they have less capital volume. We focus on broad directions, emphasizing product line features and optimizing allocations after a certain trading volume is reached. Cryptocurrency strategy capacity is typically half the capacity of equity strategies due to the difference in market size. In the options product line, we primarily deal with technology stocks and index options, similar to alpha-beta strategies.
Going forward, we will offer our high net worth clients more flexible portfolio products categorized as Conservative, Balanced, Aggressive and Aggressive. Conservative products will control volatility to around 1%, similar to fixed income; aggressive strategies will control volatility to less than 10%. We will select strategies from equities, options and cryptocurrencies, risk-match and optimize them, constantly update them and keep them growing.
Strategy development and risk management
We are diligent in our strategy development, regularly testing risk parameters and developing new strategies, maintaining a frequency of one new strategy per person per month to ensure a relatively long product life cycle. For most market strategies, whether they are equities, futures, trend-based, arbitrage or inverse strategies, a real return-to-risk ratio above 2.5 is considered good and above 3 is considered excellent. Our core products balance return and drawdown, focusing on the return-to-maximum-drawdown ratio (BRR). Strategies with an ERR above 3 are the launch criteria.
In terms of futures strategies, we are constantly updating them to stay one to two years ahead of the curve. We are an early adopter of artificial intelligence technology in our trading strategies and will be testing more new strategy systems in the future. Some directions are currently in progress but will take time to manifest.
Quantitative investing is inherently programmatic; once written, it is based on the optimal strategy at a historical point in time. When market conditions change, it is necessary to substitute other methods or strategies to enable quantitative trading to take advantage of market changes. Multi-factor strategies are more commonly used in equities than in futures. Short-term and medium- to long-term trades correspond to different market cycles, and the strategies can be very different and sometimes diametrically opposed.
Trading Mindset and Rational Trading
Trading mindset is also critical. Often, timing model signals are correct in hindsight, but investors may not understand the manager’s judgment at the time, especially during periods of product drawdown. This unique minority view is often correct. Adherence to rational trading principles is necessary to avoid emotional factors that can cause trading results to spiral out of control.
Industry Directions
The direction of industry development in the next five years includes
1.declining yield expectations for mainstream products.
2.accelerated development and iteration of artificial intelligence systems.
3.more diversified composition of market participants.
4.PPAP intelligent AI products become the mainstream investment tool of the times.