AlgoTradeSystems.

com Business Plan

Executive Summary AlgoTradeSystems.com is an internet-based high-end platform connecting its own advanced quantitative trading expertise with the fast-growing retail trading community dealing with any possible combination of asset classes, frequencies and risk/return profiles. AlgoTradeSystems.com aims to change the way individual retail traders participate in the High-Frequency-Trading (HFT) field as well as improve their comparative disadvantage as opposed to sophisticated financial institutions. More specifically, AlgoTradeSystems.com will provide a variety of in-house trading strategies and techniques in any possible liquid security thus improving HFT portfolios performance subject to the risk/return profile of each particular investor. AlgoTradeSystems.com will also offer online access to quantitative tools and complete black-box systems concerning efficient risk management, optimization procedures, data mining, sentiment analysis and plausible forecasts on the back of a continuously enhanced quantitative knowledge. Last but not least, AlgoTradeSystems.com will administrate investment forums and chat rooms on relevant topics of interest as well as provide educational material including tutorials, books and papers for a better understanding of the HFT business. All the services before mentioned will be available for purchase through safe online payment routes that will allow the company to generate profit based on its growing community.

Algorithmic and High-Frequency-Trading have both met an impressively rapid growth in the latest years because they provide a scope for greater performance scores than any other classic trading rationale. They eliminate overnight market risk, better benefit from instantaneous market liquidity imbalances and short-term inefficiencies as well as exploit the potential of leverage across asset classes simultaneously. The proportion of equity orders volume done by HFT accounts in the total trading volume in the US and Europe equity markets has been impressively rising since early 2000 and now accounts for more than 50% across active exchanges. The number of major financial institutions investing in HFT technology and talent is remarkably growing as well with major players being Renaissance Technologies, Getco LLC and Citadel LLC whereas the legal and regulatory environment is being increasingly refined in order to avoid any potential adverse market impacts.

1.1 Mission It is AlgoTradeSystems.com's mission to provide retail individual traders with the most comprehensive Web-based HFT interface available. The platform will be constantly updated and modified according to the retail HFT communitys needs and suggestions in addition to its own developers ideas and breakthrough concepts. AlgoTradeSystems.com is committed to offer first-class expertise, first-class quality, first class service and first-class company image while making a fair profit for its employees and investors. With a solid long-term view about the companys growth over time along with the confidence on its personnels experience and competence, AlgoTradeSystems.com is ready to professionally face any upcoming challenges in this swiftly expanding business.

Initial seed capital for AlgoTradeSystems.com is required in order to account for the set-up and maintenance of both hardware and software requirements, the initial marketing costs, management fees and legal-related costs. AlgoTradeSystems.com will require heavy first and second round funding in order to robustly develop and efficiently market the Web Sites potentials.

1.2 Keys to Success To succeed in this business AlgoTradeSystems.com must: Differentiate the Web-based HFT interface from all others with similar services and products Provide robust and steady returns over time on the structured quantitative portfolios Provide easy access and user friendliness concerning the first-class quantitative packages structured by the development team Create a significant and flexible community of individual retail traders that will be the grounding of a long-term relationship between the company and the public Effectively communicate the wide variety of AlgoTradeSystems.coms quantitative tools and services to non-professional traders willing to participate in the HFT industry

1.3 Strategic Advantage Main Competitive Advantages of AlgoTradeSystems.com as per below: Trading Activity across liquid assets (not just FX or Equities) Structuring portfolios out of efficient strategies adjustable to all combinations of risk/return profiles Highly skilled and experienced quant team for the main product development Extensive technological knowledge in the fields of cloud computing and software development HFT Trading system already developed and modified in Matlab and C++ programming environments thus ready for incorporation into the main business servers concerning publicly available quantitative tools packages and data sharing Experienced strategic partners with backgrounds in the technology, consulting and securities industries

1.4 Objectives Alpha and Beta testing of Web-based platform, January 15, Year 1 and May 15, Year 1 respectively Complete negotiations with brokerage firms for initial deployment of trading platform by June 1, Year 1 Secure First-Round Funding by June, Year 1 Web-site available to public beginning June 1, Year 1 (without online trading) Online trading and quantitative tools available on the Web-site, beginning September 1, Year 1 Sign up 100 members and 3 brokerages by Q4, Year 1, and another 150 members by Q4, Year 2 Achieve revenues of $100K by year end, Year 1, and another $150K by year end, Year 2

1. 60% of shared trading activity (Trading Strategies) 2. 20% of Brokerages Commissions 3. 20% of Quantitative Packages Renting AlgoTradeSystems.com international public company by year-end, Year 3

1.5 Funding Structure

Start-up Requirements

Start-up Expenses (For Two years of Business) Legal Stationery etc. Brochures Consultants Insurance Research and development Expensed equipment Total Start-up Expenses $25,000 $2,000 $1,000 $10,000 $2,000 $500,000 $25,000 $565,000

Start-up Assets (For Two years of Business) Cash Required Other Current Assets Long-term Assets $100,000 $0 $50,000

Total Start-Up Assets

$150,000

Start-up Funding Total Start-up Expenses to Fund Total Start-up Assets to Fund Total Start-Up Funding $565,000 $150,000 $715,000

Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $50,000 $100,000 $0 $100,000 $150,000

Liabilities and Capital

Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities $0 $0 $0 $0 $0

Capital Planned Investment Packages of $20 K per Investor Total Planned Equity Investment Revenues (Start-up Expenses) Depreciation of fixed Assets P&L for the two years $715,000 $250,000 ($100,000 - year1 + $150,000 year2) ($565,000) ($40,000) = ($50,000 - $5,000 - $5,000) $360,000