Science

Scientific Method

Teza builds, combines, and monitors its strategies via a rigorous scientific process. Teza’s highly experienced team of researchers identifies signals and builds out new strategies through a disciplined, science-backed methodology. Through the iterative loop of theory, experiment and analysis, the team develops, tests, and measures signals, working to identify combinations that are minimally correlated to one another.

Technology

Teza aims to generate alpha using state-of-the-art technology.

Teza’s infrastructure, including colocation on multiple exchanges, is designed to give the firm an edge in both strategy development and execution by enabling the collection and processing of hundreds of terabytes of electronic order book data per year. We believe this data provides unique insights into the flows of capital and the constantly changing relationships between asset classes. Additionally, this infrastructure is intended to facilitate certain proprietary execution algorithms.

Risk Management

Risk management is integral to the firm’s investment process, from idea generation to monitoring. Teza has made significant infrastructure investments that provide for a scalable, robust risk control platform. Liquidity risk is mitigated through a focus on Level 1 and/or highly liquid assets. Model risk is addressed via controlled development processes, intensive back-testing, modeling, validation, and deployment procedures. The firm attempts to manage drawdown risk through various innovative techniques.

Software Development

Teza’s software development capabilities form the backbone of our strategies and our business. Teza sees technology as a conduit to markets, and the mechanism by which research is generated. As our strategies are algorithmically driven, quantitative developers are embedded within our trading teams. The opportunity to build and deploy proprietary software that functions from research through production has attracted top software development talent to our organization.