As the Finance Magnates Tokyo Summit is on its way, the creators of the Mirror Trader platform and the concept of mirror trading, Israeli company Tradency is launching a new product. The company has delved deeper into algorithmic trading with the instruction of its new service Smart Investor.
Smart Investor is the first of a different breed of products which some companies in the industry have been attempting to design for some time. Tradency is at the forefront of the industry, having reached a fully working version of such a tailored Algo Trading
Algo Trading
Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo trading can be classified into the following two categories: Algo Execution Trading occurs when an order (generally a large order) is conducted via an algo trade. Since algo programs are engineered to secure the best possible price, algo execution trading may divide the trade into smaller fragments and place trades at varying times. You can think of algo execution trading as performing a set order trade. High-frequency trading (HFT) is a style of algo trading that seeks to capitalize on small trading opportunities within the market, where tens of thousands of trades can occur per second. Type of Algo TradersAlgo trading provides traders with a more systematic trading approach as opposed to manual trading while the majority of algo trading occurs in the form of high-frequency trading. Given the versatility of algo trading, it is used by a myriad of traders. Short-term traders tend to gravitate towards algo trading where arbitrageurs and brokerage houses not only benefit from automated trading execution but also by the generation substantial liquidity created through algo trading. Algo trading performed by medium to long-term traders tend to acquire large sums of stock where traders aim not to cause disturbances or volatility with anonymous, large-volume trades. Trend followers, forex traders, and hedge funds use algo trading systematically to benefit from increased trade efficiency and through automated trade execution as opposed to instinctual-based investing.Common algo trading strategies used include index fund rebalance, mean reversion, time-weighted average price, volume-weighted average price, and percentage of volume.
Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo trading can be classified into the following two categories: Algo Execution Trading occurs when an order (generally a large order) is conducted via an algo trade. Since algo programs are engineered to secure the best possible price, algo execution trading may divide the trade into smaller fragments and place trades at varying times. You can think of algo execution trading as performing a set order trade. High-frequency trading (HFT) is a style of algo trading that seeks to capitalize on small trading opportunities within the market, where tens of thousands of trades can occur per second. Type of Algo TradersAlgo trading provides traders with a more systematic trading approach as opposed to manual trading while the majority of algo trading occurs in the form of high-frequency trading. Given the versatility of algo trading, it is used by a myriad of traders. Short-term traders tend to gravitate towards algo trading where arbitrageurs and brokerage houses not only benefit from automated trading execution but also by the generation substantial liquidity created through algo trading. Algo trading performed by medium to long-term traders tend to acquire large sums of stock where traders aim not to cause disturbances or volatility with anonymous, large-volume trades. Trend followers, forex traders, and hedge funds use algo trading systematically to benefit from increased trade efficiency and through automated trade execution as opposed to instinctual-based investing.Common algo trading strategies used include index fund rebalance, mean reversion, time-weighted average price, volume-weighted average price, and percentage of volume.
Read this Term solution. In essence, this product is designed to take away from the responsibilities of the retail trader, while keeping him vested in the market.
Serving as a trading volumes optimizer and a powerful retention tool, Smart Investor could be the key to unlocking a new market for inexperienced but engaged retail traders without them having to do the trading.
Reinventing Algo-Trading
Algorithmic trading has taken on a new level with Smart Investor, as the end client of the service is able to set certain parameters with the Tradency algorithm taking care of the rest, including what algo-strategies should be used and which algo packages are suitable for the particular trader.
The end user doesn’t need any sophisticated knowledge in order to use the algorithmic Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term. Tradency’s master algorithm determines what the best options are to meet the criteria which the investor himself presets.Those criteria include risk levels, desired returns, the number of strategies used, monthly returns and the time horizon of the investment.
Algos are constantly adapting to market conditions
Trade settings and particular algorithms are run automatically without the involvement of the customer. Best of all, these algos constantly adapt to market conditions and keep the trading packages optimized and up-to-date.
The product is designed to optimize the performance of retail investors who do not have that much time to commit to full time trading. A database of algorithmic trading strategies instead takes care of the trader’s portfolio after a set of predefined conditions is determined.
Brokers will be able to capitalize on higher volumes while retaining clients
Tradency has ventured into uncharted waters with the launch of this new product. Brokers will be able to capitalize on higher volumes as the Smart Investor is very likely to increase trading activity on the account due to the lack of necessity for the end user to engage in more trading. Tradency’s algorithm will determine the best strategies in accordance to the preset parameters which the trader controls.
Looking at the implementation of the product from the broker's side, the graphic user interface (GUI) and the fast and simple activation process of Smart Investor should keep the doors open for new traders.
At the same time, the service is fully customizable on the side of the broker, bringing in options for unique brand positioning.
As the Finance Magnates Tokyo Summit is on its way, the creators of the Mirror Trader platform and the concept of mirror trading, Israeli company Tradency is launching a new product. The company has delved deeper into algorithmic trading with the instruction of its new service Smart Investor.
Smart Investor is the first of a different breed of products which some companies in the industry have been attempting to design for some time. Tradency is at the forefront of the industry, having reached a fully working version of such a tailored Algo Trading
Algo Trading
Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo trading can be classified into the following two categories: Algo Execution Trading occurs when an order (generally a large order) is conducted via an algo trade. Since algo programs are engineered to secure the best possible price, algo execution trading may divide the trade into smaller fragments and place trades at varying times. You can think of algo execution trading as performing a set order trade. High-frequency trading (HFT) is a style of algo trading that seeks to capitalize on small trading opportunities within the market, where tens of thousands of trades can occur per second. Type of Algo TradersAlgo trading provides traders with a more systematic trading approach as opposed to manual trading while the majority of algo trading occurs in the form of high-frequency trading. Given the versatility of algo trading, it is used by a myriad of traders. Short-term traders tend to gravitate towards algo trading where arbitrageurs and brokerage houses not only benefit from automated trading execution but also by the generation substantial liquidity created through algo trading. Algo trading performed by medium to long-term traders tend to acquire large sums of stock where traders aim not to cause disturbances or volatility with anonymous, large-volume trades. Trend followers, forex traders, and hedge funds use algo trading systematically to benefit from increased trade efficiency and through automated trade execution as opposed to instinctual-based investing.Common algo trading strategies used include index fund rebalance, mean reversion, time-weighted average price, volume-weighted average price, and percentage of volume.
Algo trading sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution while approximately 60% of all trades were executed by computers in 2010. Today, algo trading can be classified into the following two categories: Algo Execution Trading occurs when an order (generally a large order) is conducted via an algo trade. Since algo programs are engineered to secure the best possible price, algo execution trading may divide the trade into smaller fragments and place trades at varying times. You can think of algo execution trading as performing a set order trade. High-frequency trading (HFT) is a style of algo trading that seeks to capitalize on small trading opportunities within the market, where tens of thousands of trades can occur per second. Type of Algo TradersAlgo trading provides traders with a more systematic trading approach as opposed to manual trading while the majority of algo trading occurs in the form of high-frequency trading. Given the versatility of algo trading, it is used by a myriad of traders. Short-term traders tend to gravitate towards algo trading where arbitrageurs and brokerage houses not only benefit from automated trading execution but also by the generation substantial liquidity created through algo trading. Algo trading performed by medium to long-term traders tend to acquire large sums of stock where traders aim not to cause disturbances or volatility with anonymous, large-volume trades. Trend followers, forex traders, and hedge funds use algo trading systematically to benefit from increased trade efficiency and through automated trade execution as opposed to instinctual-based investing.Common algo trading strategies used include index fund rebalance, mean reversion, time-weighted average price, volume-weighted average price, and percentage of volume.
Read this Term solution. In essence, this product is designed to take away from the responsibilities of the retail trader, while keeping him vested in the market.
Serving as a trading volumes optimizer and a powerful retention tool, Smart Investor could be the key to unlocking a new market for inexperienced but engaged retail traders without them having to do the trading.
Reinventing Algo-Trading
Algorithmic trading has taken on a new level with Smart Investor, as the end client of the service is able to set certain parameters with the Tradency algorithm taking care of the rest, including what algo-strategies should be used and which algo packages are suitable for the particular trader.
The end user doesn’t need any sophisticated knowledge in order to use the algorithmic Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term. Tradency’s master algorithm determines what the best options are to meet the criteria which the investor himself presets.Those criteria include risk levels, desired returns, the number of strategies used, monthly returns and the time horizon of the investment.
Algos are constantly adapting to market conditions
Trade settings and particular algorithms are run automatically without the involvement of the customer. Best of all, these algos constantly adapt to market conditions and keep the trading packages optimized and up-to-date.
The product is designed to optimize the performance of retail investors who do not have that much time to commit to full time trading. A database of algorithmic trading strategies instead takes care of the trader’s portfolio after a set of predefined conditions is determined.
Brokers will be able to capitalize on higher volumes while retaining clients
Tradency has ventured into uncharted waters with the launch of this new product. Brokers will be able to capitalize on higher volumes as the Smart Investor is very likely to increase trading activity on the account due to the lack of necessity for the end user to engage in more trading. Tradency’s algorithm will determine the best strategies in accordance to the preset parameters which the trader controls.
Looking at the implementation of the product from the broker's side, the graphic user interface (GUI) and the fast and simple activation process of Smart Investor should keep the doors open for new traders.
At the same time, the service is fully customizable on the side of the broker, bringing in options for unique brand positioning.
