2015 Alpha Award Best Commodity Trading Manager
KFL Capital Management
KFL is an alternative-asset manager supported by a team of scientists who have broken new ground in the discipline of data mining and machine learning. KFL has rejected the human limitations of domain experts in favour of the power and logic of machine intelligence.
Our expertise is predictive modeling. Our method is deeply rooted in statistics and relies on highly advanced techniques. We use highly complex computer models, efficient algorithms and powerful machines to find subtle patterns where others see chaos. Simply put, we make predictions on time-series financial data. We can confidently claim to have predictive power over financial data, which gives us enough of an edge to make an enormous impact on our trading success.
The output of our work is over a dozen fast and efficient algorithms that handle everything from the way we meticulously pre-process data to the way we deal with traditional statistical pitfalls like over fitting. These algorithms are then hard coded and serve to build our predictive models. The predictive models are retrained on a daily basis.
The entire process, its output of algorithms and predictive models, and the coding that supports it gives birth to a complex system that is our competitive advantage – a “predictor” that we have affectionately named “Krystal”.
Live financial data is presented to Krystal several times a day and within seconds a prediction is made on the direction and magnitude of a price change in selected markets. Predictions are made throughout each day. At each new prediction point, the current position is replaced with the new position.
KFL Capital Management Ltd. is registered with the Ontario Securities Commission as commodity trading manager, portfolio manager, investment fund manager and exempt market dealer; and with the National Futures Association as a Commodity Trading Advisor and Commodity Pool Operator.