http://quantlabs.net/labs/quant-books/doc_download/825-algotradesystemcom-business-plan AlgoTradeSystems.com aims to change the way individual retail traders participate in the High-Frequency-Trading (HFT) field as well as improve their comparative disadvantage as opposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com will provide a variety of in-house trading strategies and techniques in any possible liquid security thus improving HFT portfolios performance subject to the risk/return profile of each particular investor. AlgoTradeSystems.com will also offer online access to quantitative tools and complete black-box systems concerning efficient risk management, optimization procedures, data mining, sentiment analysis and plausible forecasts on the back of a continuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.com will administrate investment forums and chat rooms on relevant topics of interest as well as provide educational material including tutorials, books and papers for a better understanding of the HFT business. All the services before mentioned will be available for purchase through safe online payment routes that will allow the company to generate profit based on its growing community.

1. AlgoTradeSystems.com Business Plan
Executive Summary
AlgoTradeSystems.com is an internet-based high-end platform connecting its own advanced
quantitative trading expertise with the fast-growing retail trading community dealing with
any possible combination of asset classes, frequencies and risk/return profiles.
AlgoTradeSystems.com aims to change the way individual retail traders participate in the
High-Frequency-Trading (HFT) field as well as improve their comparative disadvantage as
opposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com will
provide a variety of in-house trading strategies and techniques in any possible liquid security
thus improving HFT portfolios performance subject to the risk/return profile of each
particular investor. AlgoTradeSystems.com will also offer online access to quantitative tools
and complete black-box systems concerning efficient risk management, optimization
procedures, data mining, sentiment analysis and plausible forecasts on the back of a
continuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.com
will administrate investment forums and chat rooms on relevant topics of interest as well as
provide educational material including tutorials, books and papers for a better
understanding of the HFT business. All the services before mentioned will be available for
purchase through safe online payment routes that will allow the company to generate profit
based on its growing community.
Algorithmic and High-Frequency-Trading have both met an impressively rapid growth in the
latest years because they provide a scope for greater performance scores than any other
classic trading rationale. They eliminate overnight market risk, better benefit from
instantaneous market liquidity imbalances and short-term inefficiencies as well as exploit
the potential of leverage across asset classes simultaneously. The proportion of equity
orders volume done by HFT accounts in the total trading volume in the US and Europe equity
markets has been impressively rising since early 2000 and now accounts for more than 50%
across active exchanges. The number of major financial institutions investing in HFT
technology and talent is remarkably growing as well with major players being Renaissance
Technologies, Getco LLC and Citadel LLC whereas the legal and regulatory environment is
being increasingly refined in order to avoid any potential adverse market impacts.

2. 1.1 Mission
It is AlgoTradeSystems.com's mission to provide retail individual traders with the most
comprehensive Web-based HFT interface available. The platform will be constantly updated
and modified according to the retail HFT community’s needs and suggestions in addition to
its own developers’ ideas and breakthrough concepts. AlgoTradeSystems.com is committed
to offer first-class expertise, first-class quality, first class service and first-class company
image while making a fair profit for its employees and investors. With a solid long-term view
about the company’s growth over time along with the confidence on its personnel’s
experience and competence, AlgoTradeSystems.com is ready to professionally face any
upcoming challenges in this swiftly expanding business.
Initial seed capital for AlgoTradeSystems.com is required in order to account for the set-up
and maintenance of both hardware and software requirements, the initial marketing costs,
management fees and legal-related costs. AlgoTradeSystems.com will require heavy first and
second round funding in order to robustly develop and efficiently market the Web Site’s
potentials.
1.2 Keys to Success
To succeed in this business AlgoTradeSystems.com must:
 Differentiate the Web-based HFT interface from all others with similar services and
products
 Provide robust and steady returns over time on the structured quantitative
portfolios
 Provide easy access and user friendliness concerning the first-class quantitative
packages structured by the development team
 Create a significant and flexible community of individual retail traders that will be
the grounding of a long-term relationship between the company and the public
 Effectively communicate the wide variety of AlgoTradeSystems.com’s quantitative
tools and services to non-professional traders willing to participate in the HFT
industry

3. 1.3 Strategic Advantage
Main Competitive Advantages of AlgoTradeSystems.com as per below:
 Trading Activity across liquid assets (not just FX or Equities)
 Structuring portfolios out of efficient strategies adjustable to all combinations of
risk/return profiles
 Highly skilled and experienced quant team for the main product development
 Extensive technological knowledge in the fields of cloud computing and software
development
 HFT Trading system already developed and modified in Matlab and C++
programming environments thus ready for incorporation into the main business
servers concerning publicly available quantitative tools packages and data sharing
 Experienced strategic partners with backgrounds in the technology, consulting and
securities industries
1.4 Objectives
 Alpha and Beta testing of Web-based platform, January 15, Year 1 and May 15, Year
1 respectively
 Complete negotiations with brokerage firms for initial deployment of trading
platform by June 1, Year 1
 Secure First-Round Funding by June, Year 1
 Web-site available to public beginning June 1, Year 1 (without online trading)
 Online trading and quantitative tools available on the Web-site, beginning
September 1, Year 1
 Sign up 100 members and 3 brokerages by Q4, Year 1, and another 150 members by
Q4, Year 2
 Achieve revenues of $100K by year end, Year 1, and another $150K by year end,
Year 2

4. 1. 60% of shared trading activity (Trading Strategies)
2. 20% of Brokerages’ Commissions
3. 20% of Quantitative Packages Renting
 AlgoTradeSystems.com international public company by year-end, Year 3
1.5 Funding Structure
Start-up Requirements
Start-up Expenses (For Two years of Business)
Legal $25,000
Stationery etc. $2,000
Brochures $1,000
Consultants $10,000
Insurance $2,000
Research and development $500,000
Expensed equipment $25,000
Total Start-up Expenses $565,000
Start-up Assets (For Two years of Business)
Cash Required $100,000
Other Current Assets $0
Long-term Assets $50,000

5. Total Start-Up Assets $150,000
Start-up Funding
Total Start-up Expenses to Fund $565,000
Total Start-up Assets to Fund $150,000
Total Start-Up Funding $715,000
Assets
Non-cash Assets from Start-up $50,000
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $150,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0

6. Capital
Planned Investment
Packages of $20 K per Investor
Total Planned Equity Investment $715,000
Revenues $250,000 ($100,000 - year1 + $150,000 – year2)
(Start-up Expenses) ($565,000)
Depreciation of fixed Assets ($40,000) = ($50,000 - $5,000 - $5,000)
P&L for the two years $360,000