Although individual traders and hedge funds can be analyzed using very similar metrics and processes, at Raptor Capital Management we require an additional level of depth to address their level of complexity and their asymmetric expected returns. We achieve this rigorous stress test with our proprietary SMART index.
The SMART algorithm starts from an initial state and initial input (perhaps empty), the instructions describe a computation that, when executed, proceeds through a finite number of well-defined successive states, eventually producing output and terminating at a final ending state. The transition from one state to the next is deterministic and allows Raptor the ability to define and compare trader viability and survivability in an apples to apples fashion.
S = Specific: Clear and focused algorithm to avoid misinterpretation
M = Measurable: Can be quantified and compared to other data. It allows for meaningful statistical analysis.
A = Attainable: Achievable, reasonable, and credible under conditions expected.
R = Realistic: Concern solely for fact and rejection of the impractical and visionary.
T = Timely: Within the time frame given.