Investment Philosophy
Investment Methodology
BCP Capital develops and licenses institutional-grade algorithmic trading technology. Our methodology emphasizes systematic design, embedded risk controls, and execution realism, delivered as transparent, client-deployable systems.
Methodology at a Glance
- Research
Signal design grounded in quantitative and structural analysis - Modeling
Rule-based logic with clearly defined behaviors - Backtesting
Historical simulation across market regimes - Risk Controls
Predefined limits embedded into system logic - Execution
Design aligned with real-world trading conditions - Validation
Ongoing monitoring and refinement
Systematic Research Framework
BCP Capital’s algorithms are developed using hypothesis-driven quantitative research. Signals are evaluated for statistical robustness, economic rationale, and consistency across different market environments.
All systems are designed to operate using explicit rules rather than discretionary judgment, enabling repeatable and transparent behavior.
Backtesting and Simulation Discipline
Algorithms undergo extensive historical simulation before deployment. Backtesting is used to study behavior, risk characteristics, and sensitivity to market regimes, not as a promise of future outcomes.
Simulation analysis includes realistic assumptions for transaction costs, slippage, and execution dynamics. Historical results are subject to inherent limitations and do not predict future performance.
Embedded Risk Controls
Risk management is encoded directly into algorithm logic rather than handled manually. Key controls include:
- Predefined position sizing rules
- Exposure and drawdown limits
- Rule-based exit and stop logic
- Volatility and regime awareness
Signal → Risk Filters → Position Sizing → Execution → Exit Logic
Clients retain full authority over capital allocation and risk tolerance settings.
Execution-Aware Design
Algorithms are developed with live execution environments in mind. System behavior reflects liquidity constraints, order placement mechanics, and transaction cost considerations relevant to real-world trading.
This design approach helps reduce divergence between simulated research behavior and live execution when systems are deployed by clients.
Client Control and Deployment Model
Clients license BCP Capital’s algorithms and deploy them within brokerage accounts they control. All execution decisions, risk settings, and capital allocation choices remain under the client’s authority.
BCP Capital does not manage client portfolios, exercise discretionary trading authority, or take custody of client funds. Our role is limited to designing, maintaining, and licensing the technology.
Methodology Summary
✔ Fully systematic and rule-based
✔ Institutional-grade risk discipline
✔ Execution-aware design
✔ Transparent logic and documentation
✔ Client-controlled deployment
✔ Technology licensing model
Important Disclosure
This page describes methodology and process only. It does not constitute investment advice or a solicitation to invest. Algorithms described are licensed technology. Past performance and historical simulations do not guarantee future outcomes. BCP Capital does not provide discretionary trading, portfolio management, or custodial services.