Private equities

Systematic and Discretionary trading

At Steinfreund, we believe that a comprehensive and disciplined approach to trading is critical for success in today's fast-paced markets.

That's why we utilize a combination of systematic and discretionary trading strategies, leveraging the strengths of each to achieve our investment objectives.

Our systematic trading approach is based on quantitative models and data analysis, allowing us to make informed, data-driven decisions about when and how to execute trades. This approach is particularly useful in identifying trends and patterns in market behavior that might not be apparent to the human eye.

In contrast, our discretionary trading approach relies on the expertise and insights of our experienced team. By combining these two approaches, we're able to leverage the strengths of each and achieve greater flexibility and efficiency in our trading workflows.

What we do

Steinfreund is a Dubai-based hybrid investment firm specializing in long-short equities, systematic trading, and emerging Web3 industries, aimed at generating alpha over the medium to long term.

Market facts / Market structure

  • We use market structure to setup objective probabilistic decision points

Comprehensive order managment

  • Comprehensive liquidity and execution control increases high-quality outcomes. We seek diversification in market executions and prices

Trade at extremes of market ranges

  • We use analysis of price/crowd behavior to identify emotional price extremes and enable decisions where most participants won’t/don’t see opportunity

Trade at extremes of market ranges

  • We use analysis of price/crowd behavior to identify emotional price extremes and enable decisions where most participants won’t/don’t see opportunity

Our approach

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e-Tick Tools

We use e-Tick Tools to gain a unique edge in interpreting market trends and events. This powerful market analysis tool employs advanced real-time analysis techniques to measure, rank, and represent the behavioral patterns of market participants, as well as the impact of their emotions on the market.

With e-Tick Tools, our team gains valuable insights into the psychology of the market, identifying patterns and trends that might otherwise go unnoticed, and gaining a deeper understanding of market dynamics. By providing a unique perspective on market behavior, e-Tick Tools, helping us gain a competitive edge in today's fast-paced markets.

GLOBEX SENTIMENT INDEX (GSI)

We use a range of charting tools and cycles to generate market impulses that are similar to the Elliot-wave concept of IMPULSE but are more objective and concrete. In addition, we leverage innovative technology to create real-time support and resistance levels based on market data, providing traders with dynamic feedback and access to critical information.

By utilizing objective and concrete impulses, we provide a more precise and effective means of evaluating market dynamics, making it easier for traders to make informed decisions and stay ahead of the curve.

Custom charting

We use a range of charting tools and cycles to generate market impulses that are similar to the Elliot-wave concept of IMPULSE but are more objective and concrete. In addition, we leverage innovative technology to create real-time support and resistance levels based on market data, providing traders with dynamic feedback and access to critical information.

By utilizing objective and concrete impulses, we provide a more precise and effective means of evaluating market dynamics, making it easier for traders to make informed decisions and stay ahead of the curve.

GAP Tools

The GAP Tools feature provides real-time analysis of gap scenarios, including key factors such as emotion, volume, strength, and velocity. By computing gap projection probabilities within the first minute of the cash session, GAP Tools offers traders a powerful tool to gain insights into the market's expected direction.

One of the most valuable features of GAP Tools is its percentile ranking system, which helps us to understand the emotional ranking of a gap and its potential impact on volume, dollars added or withdrawn, and range of outcome probabilities early in the session. With its remarkable prescience, GAP Tools give significant advantage in identifying and capitalizing on market trends, making it an indispensable tool for anyone looking to stay ahead of the curve.

Trade Automation & Execution (TAE)

We use our proprietary TAE technology to streamline trading workflows, reduce errors, and execute trades quickly and efficiently. By integrating our core systematic and discretionary trading methods with real-time market data, TAE identifies trading opportunities and executes trades automatically.

In addition, TAE handles critical aspects of the trading process such as order management, risk management, and compliance. This approach enables us to focus on analysis and decision-making, staying ahead of the curve and maximizing our efficiency and profitability.

1

Execution Settlement

Execution of order occurs and cash settlement follows

2

Transmit Order to Exchange

After FCM/Brocker receives the marketable execution request from the “Reticulation Engine” the order is transmitted to the exchange

3

IB TWS Platform or FIX Server

Presently we only execute via Interactive Brokers but can/will build FIX connections to other FCM’s

4

Steinfreund Order Management

“Reticulation Engine” order management system implements an infinite resolution trade subdivision and liquidity interface

5

Risk/Trade Plan & Position Sizing

Trade Planning is a core and key element or our process during which rick is measured, decision is qualified and position is sized. If decision does not comply to risk parameters decision can be sized at 0 contracts which implies opportunity is skipped.

6

Decision

Steinfreund’s proprietary toolset & decision components generate / determine a decision

A Foundational Market Structure

MS is Probabilistic

While this is a counter-intuitive structure, it is most often the case that popular perception is in reality, a high probability opportunity.

MS is Executable

This structure is not only a significant driver, but it is also an ideally executable one for the firm’s approach, process and technology.

MS limits volatility

Within with our comprehensive order management system, we can employ “Reticulation Engine” to actively act on nearly all market price volatility no matter when it occurs 22 to 23 hours a day. This combined toolset is implemented to CONTROL and BENEFIT from volatility.

We take risk management seriously and view it as an integral part of our investment strategy. Our risk management process involves identifying, assessing, and mitigating potential risks associated with our investments.

We employ a variety of risk management techniques, including diversification, position sizing, and stop-loss orders, to help minimize risk and protect our portfolio. We also closely monitor market trends and stay informed of economic developments that could impact our investments.

In addition, we regularly review and adjust our risk management strategies to ensure they align with our investment goals and risk tolerance. This ongoing process enables us to make informed decisions and adapt quickly to changing market conditions.

Risk management

Stepping through an example of risk management approach during volatile or non-conforming market movements.

1/5

Long Entry 1 of Position 1 Executed

2/5

A large volatility PRICE spike occurs in upwards direction - system reduces risk held in position as a result

3/5

Next, a large downward price move occurs. This now effects less exposure (due to [2]) and downward volatility is then used to mitigate negative impacts via reticulation system

4/5

If TIME and PRICE metrics exceed performance demands then risk system will make a conservative bulk reduction or reticulation plan

5/5

If market is not aligned with trade objectives, bulk unwind or aggressive reticulation risk management will either of this entry of the position