Strategy & Technology Framework
AQRC’s core strategy is a quantitative arbitrage model. The operation logic includes the following layers:
Layer 1: Market Monitoring System
Real-time monitoring of price data across multiple precious-metal trading markets to capture small spread fluctuations.
Layer 2: Spread Recognition Algorithm
Using statistical models to determine whether the spread reaches an executable threshold, filtering out false fluctuations and abnormal market conditions.
Layer 3: Synchronized Hedging Execution
Execute buy and sell operations simultaneously across two markets to achieve risk hedging.
Layer 4: Automatic Position Close Mechanism
When the spread reverts or reaches the target return, the system automatically closes the position.
The entire system relies on programmatic execution to avoid human emotional interference.
Layer 1: Market Monitoring System
Real-time monitoring of price data across multiple precious-metal trading markets to capture small spread fluctuations.
Layer 2: Spread Recognition Algorithm
Using statistical models to determine whether the spread reaches an executable threshold, filtering out false fluctuations and abnormal market conditions.
Layer 3: Synchronized Hedging Execution
Execute buy and sell operations simultaneously across two markets to achieve risk hedging.
Layer 4: Automatic Position Close Mechanism
When the spread reverts or reaches the target return, the system automatically closes the position.
The entire system relies on programmatic execution to avoid human emotional interference.
Causes of Spread Generation:
Liquidity differences across markets
Quote delays
Differences in supply-demand structures among trading venues
Short-term sentiment fluctuations
Arbitrage is not about predicting market moves; it is about extracting stable returns from inconsistencies across markets.
Causes of Spread Generation:
Liquidity differences across markets
Quote delays
Differences in supply-demand structures among trading venues
Short-term sentiment fluctuations
Arbitrage is not about predicting market moves; it is about extracting stable returns from inconsistencies across markets.
Layer 1: Market Monitoring System
Real-time monitoring of price data across multiple precious-metal trading markets to capture small spread fluctuations.
Layer 2: Spread Recognition Algorithm
Using statistical models to determine whether the spread reaches an executable threshold, filtering out false fluctuations and abnormal market conditions.
Layer 3: Synchronized Hedging Execution
Execute buy and sell operations simultaneously across two markets to achieve risk hedging.
Layer 4: Automatic Position Close Mechanism
When the spread reverts or reaches the target return, the system automatically closes the position.
Backtesting & Stress Testing
Historical backtesting and Monte Carlo scenario testing to validate strategy robustness under multiple extreme conditions.
Execution & Cost Control
Consider fees, slippage, and market impact in matching and routing to keep execution costs controllable.