Biography & Leadership

Robert Pardo, CEO and President

Bob Pardo, an early pioneer of algorithmic trading in the futures industry, oversees PCL and is its primary strategist. He was instrumental in laying the initial foundations of what have become industry-wide algorithmic software applications, advancing how systematic trading is done today.

After completing his B.A. at Northwestern University in the mid-1970s, Pardo joined traders at the Chicago Mercantile Exchange. He not only gained valuable insight on the trading floor, but was fascinated by the world of futures and market analysis. Pardo further honed his skills, providing support for large-scale trading for John Meriwether and his trading desk at Salomon Brothers, famous for “Long Term Capital”.

Pardo has worn many and varied hats in his career.  He was a technical analysis software pioneer with The Pardo Corporation*, celebrated author with The Design, Testing and Optimization of Trading Strategies, consultant to celebrated trading firms with Pardo Group Limited* and market analyst with Pardo Analytics Limited*.

In the 1980s, Pardo founded The Pardo Corporation and concentrated on the design and creation of one of the first sophisticated trading software programs, among them “Chartist”, a precursor to “Advanced Trader”. “Swing Trader” was the first application, bringing sophisticated trading model development to the individual investor, while “Blast” became the software and algorithmic precursor of XT99 Diversified.

The creation of these applications required an exhaustive study of technical and chart analysis methodology. With each system gaining in sophistication, Pardo’s explorations broadened to include a wide variety of artificial intelligence and advanced numeric methods. Pardo increasingly focused on the creation of techniques to optimize and validate trading strategies in a reliable way, eliminating hindsight and “over-fitting”. In 1991, Pardo developed the ground-breaking strategy optimization and validation methodology known as Walk-Forward Analysis™. An early implementation of this method was described in his Futures article Walking Forward Can Keep a Trading Model Fresh.

Pardo expressed his ideas about the testing and development of trading systems in his highly regarded book titled The Design, Testing and Optimization of Trading Systems (DTOTS), published by J. Wiley & Sons in 1991. This book — referred to in the industry as the “Black Bible” — has long enjoyed the international acclaim of the trading community and is widely considered a trading classic. Pardo updated DTOTS in 2007 in a renamed and greatly expanded 2nd edition The Evaluation and Optimization of Trading Strategies.

Beginning in the late ‘80s Pardo established Pardo Group Limited a boutique consulting firm providing design and analysis services to a select group of clients including Goldman Sachs, Daiwa Securities and Transworld Oil among others. A joint venture with Daiwa Securities led to the first iteration of XT99 Diversified, a predecessor of the currently operated and highly successful trading program XT99 Diversified and the beginning of PCL’s full-scale trading operations in 1996.

XT99 Diversified's proprietary, sophisticated trading strategy and evaluation methodologies are used to manage all PCL client investments, consistently landing XT99 Diversified in the top performance categories for futures funds. PCL has been cited more than 30 times in these categories and has won Pardo multiple honors as top trader. Most recently, he was featured as one of the top traders of 2008 in Futures magazine.

*Pardo Group Limited and Pardo Analytics Limited were discontinued in January, 2009 and Pardo Corporation in 1992 due to Pardo’s desire to focus exclusively on trading and asset management.

Bob can be contacted at bob.pardo@pardocapital.com



Pardo Capital
Pardo Capital

THE RISK OF LOSS IN FUTURES TRADING IS SUBSTANTIAL AND IS NOT SUITABLE FOR EVERYONE.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.