• power

    Financial, Balace Sheet, Electricity Generation Optimization

    Power Portfolio, Generation & Bidding Optimization
    Optimal Portfolio Allocation Across Asset Classes
    Banking Balance Sheet Optimization
    Optimization of Investment Decision
    Maximize Cash, Profit and Return, Minimize Losses & Risk
    Optimization of Enterprises, Organizations & Operations

Unrivaled comprehensive optimization solutions for financials, banks, treasury, real-assets, operations and supply chain

A wide Range of Optimization Solutions:

Our platform is suitable for any entity seeking ready-for-use state-of-the-art cost-effective and flexible optimization solutions that actually work, and don’t require lengthy implementation, nor large consultant and maintenance teams.

Tactical dynamic optimization over short horizons, (sub)-hourly real-time to daily, e.g., in real-time trading to maximize a given indicator, e.g., profit, or minimize a custom indicator, e.g., cost.

Strategic optimal asset allocation over longer horizons. Assets can be financial, a bank’s balance sheet, a power plant, or human resources.

Post-event performance analysis comparing actual and potential optimal scenarios in the past. The difference represents your opportunity cost or losses due to under-optimized strategies.

You can define multiple optimization objective functions to fit your assets, financial and physical operations, supply chain, treasury, etc.

Optimization models can be dynamic, multi-period and path dependent, whereby a decision in one time step affects possible future decisions. Complex sets of constrains can be added.

24/7 Cloud Optimization services offer a wide range of ready-to-use advanced numeric optimization models, automatically executed around the clock. No software installation or coding.

Optimization results are available through multiple reports and dashboards, and can be exported in CSV files, or external databases, manually or automatically via our flexible API. No SQL and no coding.

Universal Optimization Platform

We offer great flexibility to create any custom optimization model, e.g., balance sheet, financial portfolio, real asset, supply chain, logistics or power plants, as multi-period dynamic portfolios of operational decisions, e.g., buy or sell, expand or retract, invest or divest, operate or not. Our next generation supercomputing technology overcomes numeric challenges, speed and memory issues.

Advanced Methodologies

Linear and nonlinear analytics optimization models (expressed via equations) are implemented via mixed integer programming. Optimization models without an equational form, e.g., optimizing a power plant’s bidding in an ISO market, or problems with nonlinear constraints, e.g., optimizing a bank’s balance sheet under liquidity and capital ratios, use evolutionary optimization methodologies.

A Wide Range of Optimization Solutions for all Industries and Operations

Power Portfolio Optimization

  • Real-time (sub)-hourly and DA optimization in trading. Long-term strategic and planning optimization.

  • Power portfolio optimization. (Sub)-hourly optimal dispatch and buy sell decisions across bilateral power procurement contracts and a spot market to minimize energy cost.

  • Generation and bidding optimization. Optimal (sub)-hourly generation schedule and bidding into ISOs to maximize total profit from generation and sales to the ISO.

Treasury and Corporate Optimization

  • Optimize the benefits, pension and healthcare portfolios.

  • Optimize corporate and treasury cash and liquidity across multiple businesses, locations, jurisdictions, currencies, banks, lenders, loans, credits, etc., subject to multiple constraints on liquidity, working capital, taxation and regulatory requirements.

  • Optimize investment, asset & liability portfolios across fixed versus float interest rate loans, FX, bonds, deposits and money market instruments. Minimize cost or risk. Maximize return, liquidity, profit & cash.

Financial and Banking Optimization

  • Balance sheet optimization under internal and BASEL III central bank liquidity and capital constraints. Maximize earnings, minimize cost of capital.

  • Optimization of investment, funds, wealth and pension portfolios across all asset classes, mutual funds, equities, bonds, money markets, emerging markets, etc.

  • Daily to annualized performance analysis, risk, returns and the efficient frontier.

  • Portfolio optimization from two perspectives on the efficient frontier: minimize risk for a target return or maximize return for a set risk profile.

Optimization of Operations & Organizations

Optimization objectives need not be financial, e.g.:

  • Optimize the benefits, pension and healthcare portfolios.

  • A school district can maximize student or staff retention, graduation rates, performance or testing scores.

  • A hospital can optimize its human, technology and operational resources to maximize services to specific demographic or regional patient pools.

  • An industry, organization or agency can maximize productivity or performance by re-organizing assets, methods or technology.

  • A retailer can maximize sales volumes, margins, or optimize the allocation of promotions and marketing budget.

Flexibility in Modeling Any Optimization Problem

Unlike other systems, QR Optimization platform is not narrowly designed for a specific purpose. It offers utmost flexibility to model in great detail any complex optimization problem. E.g., financial portfolio, power generation portfolio, high-frequency trading, real-asset operations, airlines, shipping, R&D investment and business development.

The optimization has a multi-tier modular architecture. In particular the following tiers are fully separated.

Configuration of real-asset operations, stages, input, output, heat-rates, transformation processes, constraints and various rules.

Definition of detailed cost, revenues, losses and valuation rules, including nonlinear relationships among the quantities.

Modeling and forecasting of data curves needed, e.g., prices.

Ability to define custom optimization objective functions via mathematical formulae, e.g., minimize costs, maximize profits, maximize transportation capacity, minimize risk, optimize hedge ratio, etc.

QR Optimization can handles a wide range of optimization problem as long as:

Portfolio allocation, or operational states of the problem, i.e., volumes or positions can be discretized.

Operational transitions across states and levels can be expressed as rules, along with linear and non-linear constraints.

All key quantities can be added as needed, e.g., volumes, prices, charges, schedules, fees, costs, and revenues across various operational levels.

The optimization objective function can be expressed in terms of mathematical formulas involving key quantities of the problem at hand.

QuantRisk is the Perfect Tool to Optimize Your Bottom Line

Strategic Optimal Decision Making

Optimization and what-if-scenario projections over long horizons are the best tools for the valuation (net present value, net residual value, and P&L) of complex financial contracts, physical assets, logistics and operations.

Optimize decision making in planning, business development, acquisition, hedging, expansion or scaling back a given operation or asset.

Enhance the value or profit of an asset by exploring operational or financial strategies. Define different pricing rules, or remove or add some constraints to increase or limit some contractual flexibilities. Then execute optimization on these scenarios to measure and compare the effect on the cash flow and P&L.

Tactical Optimal Decision Making

Maximize profit in high-frequency trading over short horizons or operation of assets such as power plant generation and bidding to spot electricity markets.

When used over short horizons, QR optimization platform runs a full optimization cycle and P&L valuation in seconds. This exceptional speed allows the execution of optimization in real time as prices change, every trading period around the clock.

Dynamic trading assisted and guided by real-time optimization can increase trading P&L significantly, e.g., in power portfolio optimization.

Where Can QuantRisk Optimization be Expertly Used?

For a generation asset selling wholesale physical energy to utilities or retail marketers, QR Optimization maximizes profit by trading real-time generation in and out of the spot market to satisfy contractual obligations, subject to all constraints. The excess capacity beyond contractual obligations is treated as merchant.

For a generation asset that has merchant capacity, QR Optimizer will maximize profit by dispatching the plant to maximum capacity when it is in the money or shut it down when out of the money, subject to all operational constraints.

For a utility or energy marketer whose supply portfolio is composed of physical bilateral PPA contracts and the spot market, QR will optimize nomination across the said supply portfolio to minimize energy cost, while fulfilling all supply contractual obligations, and total SCADA demand load.

For resource allocation and operations QR Optimization can have a wide range of applications in operational decision making as well as resource allocation. Resources can be financial, human, physical and material. Target operations can be any real asset operation such as R&D, exploration, production, transportation and logistics of commodities, goods, products, or health care.

For financial portfolios QR Optimization will determine the portfolio allocation across assets that minimizes a given risk indicator (VaR, exposure, or cash flow at risk), or maximizes net cash, profit or liquidity ratio. Optimal decision making in business development activities such as acquisition, development, hedging, expansion, or retraction.

Any complex optimization problem whose operational states, volumes, and positions can be discretized, and whose objective function can be expressed in terms of any mathematical formulas involving some quantities, can be handled.

Real-time Business Intelligence and Process Automation

Performance analysis is provided as decision making support. QR System not only suggests optimal operational levels, but it also provides a real-time performance analysis of losses and gains. To accomplish this, it computes and compares in real-time the full P&L under two different scenarios: actual operation or trading, versus the optimal strategy. These are then displayed on a live Trading or Decision-Making Panels as described below.

QR Optimization is seamlessly integrated with operations and logistics. Optimal operational levels are transferred seamlessly to any desired operational or logistics system for scheduling, dispatch, nominations, transportation, storage, etc.

QR Optimization panel displays on a live web panel, the optimal decision levels for each asset or operation along with their corresponding P&L with any desired breakdown, such as revenue, costs, net cash, market, and operational data. This enables real-time optimal decision making in fast moving markets, where traders have to make split-second buy or sell decisions.

Achieve High-Performance Computing on Off-the-Shelf Servers

QR Optimization methodology is neither single period nor linear programming.

QR framework is based on multi-period dynamic optimization. This means when the problem at hand requires it, we optimize multiple periods together allowing for path dependencies across time.

The user can define any desired nonlinearity in the objective function and the constraints. For example, when optimizing power generation assets, the fuel cost is a nonlinear function of the load.

Implementation uses very advanced high-performance computing technologies, including advanced sparse large scale mixed integer programming, and evolutionary algorithms for global optimization.

QR Optimization engine has built-in computational efficiency controls to ensure that the Optimization Model you have created can be optimally executed on your server while best managing its CPU or RAM resources. You can indeed calibrate the optimization engine by adjusting the convergence tolerance level, or the duration of iteration cycles.

The global optimization algorithms and methodologies are powerful enough to allow the handling of nonlinear multi-objective functions to either combine different optimization perspectives for a single player, or to model multiple players in the market.

QR Optimization System is implemented within QR Parallel Processing Architecture. More specifically, you can create a customized execution architecture breaking down the full optimization cycle into sub-tasks. Then the parallel processor automatically assigns, dispatches, and manages execution across multiple threads. This built-in computational scalability leverages server resources optimally and accelerates the entire optimization process. It produces optimal strategies under a minute (on off-the-shelf servers), with the ultimate goal of enabling real-time optimal decision making in fast moving markets, where traders have to make split-second buy or sell decisions.

QR Optimization System allows you to create any desired valuation model for real assets and operations by defining them as portfolios of path dependent call and put options. The call options operate the asset when it is in the money, i.e., when operational cash flow is positive. The put options do not operate the asset when it is out of the money, i.e., when operational cash flow is negative. Both options are subject to operational and contractual constraints. In reality, a decision made in any time frame impacts the range of possible decisions in past and subsequent time frames. To capture this in a dynamic optimization perspective, we model path dependency by optimizing or evaluating the call and put options across blocks of 24 hours or longer.

Next Generation Dual Cloud On-site Platform

  • Leverage next generation dual-use cloud on-site architecture. QR Cloud is a live 24/7 supercomputing platform with a vast array of ready-to-use models and templates. You can select, download and customize any configuration from QR Cloud in your own instance, whether on-site or on QR Cloud.

  • QR System is a single universal software for all on-site and QR Cloud instances, and is upgraded quarterly free of charge. Actual clients’ implementation are configured in a database, which is portable from QR Cloud to on-site.

  • QR Cloud is ideal for medium size players. No software installation, IT infrastructure, resources or efforts required. All you need is a browser.

  • Private Cloud or on-site are for entities wishing to control data and processes.

New Commercial Paradigm

  • Whether on the cloud or on-site, no permanent license and no hefty initial license fee. Just pay 1 single yearly subscription fee for license, cloud supercomputing, maintenance and on-going upgrades.

  • Start with an actual Trial to test our platform and the quality of our expert team. Continue if satisfied. Cancel if the Trial fails to meet your expectations. 

  • Ready for use out-of-the-box, no development or coding.

  • Cost-effective speedy implementation via intuitive configuration. Select, download and customize any configuration from QR Cloud in your own instance, whether on-site or on QR Cloud. Save years and millions.

Need more information?

Our expert team are here to help with any questions you have regarding QR Cloud Services™. Call or email today.

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