OUR BUSINESS ECOsystem

Our business model is all about connecting strategy developers to options traders through technology. In the picture below, you can see the group of strategy developers on the left whose job is to develop robust options strategies, and on the right is the group of option traders who wants to use good option strategies in their trading business. 

Our business ecosystem is a simple demand-supply model where strategy developers strive to provide the good strategies which they will be remunerated, and in turn traders vote with their money by subscribing to the trade alert services which uses the strategies of their choice. 

OptionNalytics provides two core components in our technology platform, which are the Stratmaster Server and the OptionBotz Server and both are linked via the Stratmaster Strategy File

The Stratmaster Strategy File (SFF) is an digital file which contains the entire strategy rules from entry requirements, adjustments and exit conditions. As the name implies, the  SSF is based on a proprietary format which is recognizable to Stratmaster Server. As many of strategy developers may have created names of their strategies and created a PDF file which provides the rules in plain English sentences ie. “SELL half of the 20 Delta SPX PUT” whereas the SSF is the translated version for running the strategy within Stratmaster. To avoid confusion between English PDF version of the strategy file from the SFF, all SSF files are prefix with ‘SSF’ prior to the file name. Also, the name is slightly changed from the original strategy name ie. ‘BULL BUTTERFLY.PDF’ strategy may named ‘SSF_BULLFLY’ in SSF format.   

The Results From Back-Testing

With a few clicks of the mouse,  the the robustness of a strategy can be performed by running it through 10 years of historical data. The report log will provide a chart of P/L data points, as well as detailed ‘current configuration’ information snap-shot of the daily open and closed P/L, greek values as well as adjustments made on the position.

Below are some screen-capture of the data analysis result reports. 

Reports of some of these strategies are available for download by clicking HERE.

Our Tools Of Trade

At OptionNalytics.. we use the power of technology to perform recursive work as well as use Data Analytics (DA) modeling to help analyse all data points and build trade simulation and models that mimics actual trading sessions, in doing so to get the closest possible end-results with the fastest possible time. 

Our Data Analytics modeling is mainly based on three well-known models of Data Analytics – Descriptive Analytics, Diagnostics Analytics and Prescriptive Analytics.

Descriptive Analytics

When using Automated Back-Test* mode, up to ten years of historical data of selected underlying stock indices and its associated option data can be fed automatically to the system, given an overall P/L graph and provides a overall analysis of the strategy.

Diagnostics Analytics

The Manual Day-Step* mode allows developers to step-through various date ranges, diagnose the 'why' in resulting P/L and make immediate changes to strategy settings.

Prescriptive Analytics

Finally, using the Control-Experiment* mode, developers may perform a quick regression testing by measuring the relation between the value of one variable (e.g. output) and corresponding pre-set values of another parameter, while keeping other parameters constant. This enables the correct prescription of the just-the-right-amount 'Goldilocks zone' setting during the final phase fine-tuning of the strategy.

*  Automated Back-Test, Manual Day-Step and Control-Experiment back-testing modes are available within the Stratmaster Options Strategy Management System. For more information about Stratmaster, please click HERE