Who We Are
At Blackwood Capital, we are a proprietary trading firm based in New York. We focus primarily on creating automated, data-driven trading systems designed to eliminate emotional decision-making and prioritize consistent, long-term results.
What We Do
We continuously work to find structure in data and transform that data into actionable strategies through algorithmic execution.
We model different volatility regimes to test the resilience of our logic engine while striving to retain alpha through stringent risk management.
We achieve this by:
- Trading in small and mid-cap companies while identifying and capitalizing on market inefficiencies
- Retaining predictive variables based solely on proven outcomes
- Managing position sizing efficiently and effectively
- Accounting for a wide range of market outcomes using scenario analysis, Monte Carlo simulations, and randomness modeling
- Allowing our logic engine to make decisions and execute trades algorithmically within minutes—leveraging volatility filters, simulations, and detailed market microstructure analysis
What Sets Us Apart
Internally Funded: We're entirely self-funded, meaning we don't rely on external capital or manage funds for outside investors. Our focus is performance.
Custom-Built Strategies: Every strategy we deploy is developed in-house and grounded in risk modeling, predictive analytics, and disciplined financial methods.
Results Over Marketing: We prioritize performance and let our results speak louder than any promotional campaign.
Our Mission
We aim to redefine how participants engage with capital markets by using rigorous automation, statistical analysis, and integrity-driven execution.
Understanding Quantitative Trading
Before diving deeper, let's clarify what "quantitative" really means. Simply put, it relates to measurable data and numerical analysis. In trading, this typically means using statistical and mathematical models to make investment decisions based on data—not intuition.
Quantitative Data: Information expressed numerically—like price movements, volume figures, or statistical metrics.
Quantitative Research: This involves collecting and analyzing numerical data to answer questions like "how much," "how many," or "to what extent." In trading, it aims to uncover patterns, test hypotheses, and build predictive models based on empirical evidence.
Quantitative trading takes these concepts and applies them to financial markets. It involves analyzing massive amounts of historical data—such as price movements, trading volumes, and technical indicators—to identify repeatable patterns and trends. Traders then use this information to make smarter, more informed decisions.
Two common types of quantitative trading models include:
- AI/Machine Learning-Based Algorithmic Trading
- In-House, Custom-Built Algorithmic Strategies (This is our primary approach at Blackwood Capital)
Why Quantitative Trading Matters in Today's Market
One major factor driving the effectiveness of quantitative trading is human psychology. When markets get volatile—whether due to recessions, pandemics, or breaking economic news—many traders become overwhelmed and unsure of when to act. Quantitative trading removes that emotional uncertainty. With predefined rules and extensive historical testing, our strategies remain consistent, calm, and rational no matter how turbulent the market becomes.
Our Core Trading Philosophy
We've kept our trading philosophy simple and intentional. Our goal is to design robust strategies that perform across all market environments—whether the market is trending up, down, or sideways.
Here's our step-by-step approach:
- Develop the Strategy: Clearly define the logic behind each trading model
- Backtesting: Use historical data to rigorously test the model's performance over time
- Risk Management: Implement strict rules to manage losses and control exposure
- Algorithmic Implementation: Translate the strategy into code using Python and C++
- Live Deployment: Run the algorithm in real market conditions to monitor and evaluate its performance
A Brief Look at Our Strategy
While we can't reveal exact details, our approach is best described as dynamic. Rather than trying to predict the market, we adapt to wherever it goes. Think of it like riding a roller coaster—we're prepared for every twist and turn.
What to Expect from Blackwood Capital
- Weekly updates comparing our live performance to major market benchmarks
- Educational content and insights from our research team
- Future opportunities to collaborate or invest with us
Published: December 5, 2024
Last Updated: December 5, 2024