Welcome to
PRISM TRADING PHILOSOPHY

PRISM Trading Advisors, Inc. (PRISM), is strongly committed to the highest standards of conduct and ethics as described and implemented under the requirements of the Market Technicians Association (“MTA”, visit http://www.mta.org/eweb/dynamicpage.aspx?webcode=code-of-ethics

and also the CFA Institute (visit http://www.cfainstitute.org/ethics/Pages/index.aspx ).

PRISM believes in following the doctrine of disciplined systematic and unbiased research based on the principles of statistical evidence in all of its educational, research and consulting services.  PRISM has reviewed and conducted extensive research in the areas of:

  • Trader psychology and high performance trade execution.
  • Stress and risk management of the individual trader.
  • Execution and trader-related errors.
  • Risk management of portfolio and core position holdings.
  •  Momentum and trend following trading strategies using the MACD indicator.
  • Contra-trend and divergence trading strategies using the RSI, stochastics and MACD indicators.
  • Volatility trading strategies using Implied Volatility, Average True Range, Standard Deviation, Keltner Bands, Bollinger Bands, and channel indicators.
  • Bet-sizing and money management strategies to minimize risk of ruin, plus additional scale in and scale out money management strategies to trade around core portfolio holdings.
  • High expectancy  trading strategies to maximize alpha outcomes in absolute return portfolio strategies.
  • Extensive research in the areas of dynamic hedging using collars and married put options combinations to trade around core portfolio holdings.

PRISM believes that the worst case scenarios are assumed to be “just around the corner”.  With this risk averse priority, the research is focused extensively on trading methodologies to mitigate risk to a minimum while still allowing exposure to favorable price movements and outcomes known as “alpha”.  PRISM only conducts research and implementation on low and limited risk trading strategies.

In addition PRISM also recommends contingency risk planning in the areas of redundant data communications, computer trading platforms, clearing arrangements, hedging and risk management facilities, back-up data and client information database storage.