STRATEGIES and SYSTEMS

We develop algorithmic trading systems through a structured research and validation process that combines quantitative analysis, statistical evaluation, historical market data, and predefined execution logic.

Each algorithm progresses through a well-defined, multi-stage development framework designed to assess behavior across different market environments using more than a decade of historical data. This process focuses on robustness, risk characteristics, and consistency of system behavior rather than isolated performance outcomes.

Following initial development and validation, algorithms are evaluated using a recency testing phase based on the most recent three months of market data. Systems that meet predefined criteria then undergo a forward-testing phase over an additional three-month period to assess stability, execution behavior, and alignment with expected risk characteristics.

Only algorithms that successfully complete all stages of research, recency testing, and forward testing are considered ready for client deployment under the technology licensing model.

These strategies focus on volatility dynamics, options market structure, and defined-risk trade construction.

Key design features may include:

• Risk-defined payoff structures
   
• Exposure calibrated to volatility regimes
   
• Explicit loss limits embedded into strategy logic
   
• Structured exits based on predefined conditions
   

Options-based systems are designed with a strong emphasis on risk containment and execution realism.

All BCP Capital systems share a common risk architecture designed to promote disciplined behavior. Common risk principles include:

• Explicit maximum exposure limits
   
• Rule-based exits and stop logic
   
• Defined capital allocation boundaries
   
• Scenario and stress-aware constraints
   

Risk controls are embedded directly into system logic and are not dependent on discretionary intervention.

• Are these strategies customizable?
  Certain parameters may be configurable depending on the system. Customization is governed by licensing terms and system design constraints.
• Do all clients receive the same systems?
  System availability depends on the licensing arrangement and suitability considerations.
• Are these strategies managed by BCP Capital?
  No. Clients deploy and operate the systems in accounts they control. BCP Capital provides the technology only.
• Do these strategies guarantee returns?
  No. All trading strategies involve risk, and outcomes may vary depending on market conditions and execution.