Who We Are
NovoDyn Advisors is committed to building client wealth by utilizing automated, proprietary statistical quant algorithms applied to diversified futures markets. Our artificial intelligence mechanisms eliminate human decision biases. This is increasingly necessary as a large percentage of financial markets are computer-driven.
Firm description: Boutique, client focused, systematic artificial intelligence.
NovoDyn Advisors is a CFTC registered CTA, member of NFA, and registered investment advisor.
What We Do
Our technology identifies short term price waves, utilizing tools such as Fourier Transforms and Kalman Filters to resolve wave amplitude, removing white noise (random walk). Mean reversion and inverse mean reversion are employed. Positions are of short duration (average 4.25 days). Entry and exit decisions are program controlled and fully automated.
These proprietary algorithms have been employed in the refined products (energy) sector since 1989. Originally written by a team of mathematicians as a “make-work” project during a defense contract project delay, the algorithms served as the trading and hedging nucleus for Aectra Refining/Ameristar Fuels and supported NASA and Department of Defense (DESC) fuel purchasing programs.
The strategy functions across multiple futures markets at low margin to nominal account size ratios (target: 18%), generating returns with small standard deviations (approximately 1%). This provides clients the opportunity to leverage returns through increased notional funding. The quant is designed to provide a hedge to the long only strategies of equity advisors and endeavors to achieve a zero correlation to the S&P 500 index. It is also capable of generating a relatively stable revenue stream.