Southpac Financial Group

Trade Mechanics

Trade Mechanics is a registered business wholly owned by Southpac Financial Services Pty Limited.

Southpac Group is a trader of financial securities markets and derivative markets. At Southpac we apply our own proprietary quantitative trading systems to the markets we trade. Our systems are long short trading systems which are reactive in approach. Trades may last for periods ranging from 15mins to several weeks.

Trade Mechanics is the process by which each market's data is mathematically tracked in order to determine the targets for the acquisition and divestment of each asset within the investment portfolio. The process of tracking the market produces a trading methodology which responds appropriately when the market changes its movement pattern. The system is not dependent upon rigid parameters which tend to break down in real-time trading. Integration of the trade mathematics for trade size, entry and exit are key elements of the Trade Mechanics portfolio management methodology.

The Trade Mechanics formulae, algorithms, software and trade plans are the sole property of Southpac Group. The Southpac Trading Plan, developed through the application of the Trade Mechanics' market mathematics, is reactive and has produced excellent trading results. Allocation of an instrument, or group of instruments, to specific profit-centres and maximisation of the Sharpe Ratio are key performance goals.

Each new market is researched by means of back-testing over various time frames using the Trade Mechanics systems. The markets are then traded on a test basis to determine the real-time performance statistics (Refer Performance page). These results are compared daily to the Trade Mechanics system results to assess the live trade performance. As with all markets traded an analysis report isolates trade variances into manageable trading errors and uncontainable market slippage. This provides invaluable feedback to the individual trader and provides ongoing quality control of trading execution.

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