Strategy 01 · Market Neutral
Systematic Execution
Humans set the parameters. Systems work within them.
A neutral book is many positions across many venues, each needing continuous attention to funding, basis, margin and hedge ratio. That is not a task for a person watching screens. Wesvel’s neutral strategies are executed by systems that observe conditions across venues around the clock and act within limits that people have set and can see.
What is automated
Order placement and hedge rebalancing, margin monitoring and top-up, funding and basis measurement across venues, and the routine sweeping of excess balances to custody. Each of these is a well-defined task with a clear rule, and doing it by hand introduces delay and error without adding judgment.
What is not
Which venues are in the rotation. What the exposure limits are, per venue, per asset and per strategy. When a funding regime has changed enough to reduce a book. Whether a new instrument or collateral type is fit for use. These decisions are made by people, documented, and applied to the systems as parameters.
Controls
Execution authority and withdrawal authority are held separately: the systems that trade cannot move assets out of a venue to an address that has not been pre-approved. Every automated action is logged with the rule that triggered it. Kill switches halt trading per venue and per strategy, and are tested. Post-trade, executions are reviewed against arrival price and against the rule that produced them.
Practice
How Wesvel approaches it
- 01Systems act only within parameters that are set by named individuals and recorded; a parameter change is itself a logged, reviewed event.
- 02Withdrawal addresses are whitelisted under a separate approval chain from trading; no trading system can add one.
- 03Every strategy has a tested halt, and the book is designed to be safe when halted, hedges are not left dependent on continued automation.
- 04Post-trade review compares realized execution against expectation and against the rule, and feeds back into parameters.
More in Market Neutral
- Funding Rate CaptureHow a long spot, short perpetual position earns the funding leveraged traders pay, with near-zero price exposure.
- Cross-Venue DislocationCapturing price differences for the same asset across exchanges that do not share an order book.
- Volatility-Based Neutral StrategiesPositions constructed to benefit from the magnitude of price movement while remaining indifferent to its direction.