🗒️Backtesting, Simulations, and Regulatory Compliance
Historical Data Analysis: Backtesting is conducted using historical data to evaluate the performance of the real estate index and associated perpetual trading strategy under various market conditions.
Monte Carlo Simulation: Monte Carlo simulations are performed to assess the potential range of outcomes and quantify the risk-return profile of the index and trading strategy.
Legal and Regulatory Review: Compliance with relevant securities laws, derivatives regulations, and other applicable regulations governing both real estate and cryptocurrency markets is ensured.
Regulatory Reporting: Procedures for regulatory reporting and compliance oversight are established to maintain transparency and accountability.
Technology Infrastructure: A trading platform with advanced order matching, risk management, and surveillance capabilities is deployed to support trading of perpetual contracts linked to the real estate index.
Market Making and Liquidity Provision: Market makers and liquidity providers are engaged to enhance market liquidity and facilitate efficient price discovery.
Performance Monitoring: The performance of the real estate index and perpetual trading strategy is continuously monitored, analyzing key metrics such as tracking error, Sharpe ratio, and drawdowns.
Optimization Strategies: Optimization techniques such as portfolio rebalancing, parameter tuning, and dynamic hedging are employed to improve the risk-adjusted returns of the index and trading strategy over time.
Last updated