Trade Recommend tool uses a set of relative value and statistical based models to generate trading ideas in the government bond trading space. The framework allows traders to generate advanced butterfly & curve spreads trades based on the user’s choice of three distinct models: Expected Curve Move model, Relative Value model, and Principal Component Analysis model.
Using a two-stage setup approach, the Trade Recommend tool applies the selected Models to identify and structure market-neutral butterfly and curve spread trades.
For every trading strategy the Trade Recommend tool generates, it provides an elegant visualisation package of reports with important risk analytics and target trade horizons.
The Trade Recommend reports visualisation allows the characteristics of the trades to be captured in a more user-friendly way, traders can easily assess and select their preferred trade idea that suits best their risk appetite, target profit and loss, and their desired investment horizon.