Algo Trading News Headlines 9/17/2018

The who, how and why of high-frequency crypto trading

(www.bravenewcoin.com)

According to the Financial Times, several leading high-frequency trading houses, including DRW, Jump Trading, DV Trading, and Hehmeyer Trading have entered the crypto asset markets last year. Several newly-launched crypto hedge funds are also using algorithmic trading strategies to generate a return on investment for their investors.

Dutch high-frequency trading house, Flow Traders BV, also recently made a move into the crypto markets, according to Bloomberg. The Amsterdam-based company is making markets in exchange-traded notes linked to bitcoin and ether due to strong investor demand for crypto investments.

Photo by  Marc Szeglat  on  Unsplash

JP Morgan Says Severe Crisis to Arrive in 2020

(www.nasdaq.com)

The consensus is that there will be a major “liquidity crisis” with huge selloffs in major asset classes, and no one to step in to buy. The losses will be exacerbated by the shift to passive management and the rise of algorithmic trading. JP Morgan says that the Fed and other central banks may even need to directly buy stocks, and there could even be negative income taxes. The bank thinks the crisis will hit sometime after the first half of 2019, most likely in 2020.

Billionaire who once built robots to trade goes to war with them

(www.economictimes.com)

Thomas Peterffy helped launch the electronic-trading revolution that transformed the US stock market. And while the billionaire hasn’t soured on automation, he’s taking a lead role fighting back against the speediest traders. 

Interactive Brokers Group Inc. announced Wednesday that it will list its shares on an exchange run by IEXNSE 0.06 %Group Inc., which was made famous by Michael Lewis in “Flash Boys.” The 2014 book documented the market’s efforts to use a 350-microsecond speed bump to eliminate advantages IEX believed the fastest traders had in US stocks. When shares of Interactive Brokers move over from Nasdaq Inc., it will be IEX’s first win in its delayed plan to list corporations.

Quant Strategy in Emerging-Market FX Posts Best Run in Six Years

(www.bloomberg.com)

A Nomura index that mimics a trend-following strategy by chasing momentum in 10 EM currencies against the dollar has outperformed the JPMorgan Emerging Market Index by nearly 20 percentage points so far this year.

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Algo Trading News Headlines 9/12/2018

Waters Rankings 2018: Best Algorithmic Trading Provider — Wolverine Execution Services

(www.waterstechnology.com)

Early forms of automated order entry provided the catalyst for what would become the foundational trading method of modern markets, but the development of algorithmic trading itself has been fascinating — and at times, controversial — evolution in listed markets. Wolverine Execution Services (WEX) has been at the forefront of broker-supplied algo.

Millennium Shuts Down Pioneering Quant Hedge Fund

(www.bloomberg.com)

The closing of Prediction Company, which Millennium bought in 2013, came as a surprise to employees because the firm was profitable, according to a person familiar with the matter. The hedge fund was started by Doyne Farmer and Norm Packard, who are known for their seminal work in developing chaos theory, and managed about $4 billion at its peak.

Comparing 3 Different Types of Neural Network Architectures in Finance

(alpaca.markets)

When working on a machine learning task, the network architecture and the training method are the two key factors to turning a set of data-points into a functional model. But where should different training methods be applied? How do they work? And which is “best”? In this post, we list up three types of training methods and make comparisons among Supervised, Unsupervised and Reinforcement Learning.

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Algo Trading News Headlines 8/22/2018

Wall Street Erases the Line Between Its Jocks and Nerds

(www.wsj.com)

There used to be a strict hierarchy: Traders made money and won glory while programmers wrote code and stayed out of sight. Those days are over. Meet the straders. Part risk-taking trader and part computer-whiz “strategist,” they are prowling the halls at Goldman Sachs Group Inc., erasing a once-religious line between the jocks and the nerds.

Photo by  FOTOGRAFIA .GES  on  Unsplash

Israel’s Central Bank Wants Increased Regulation on Algorithmic Trading

(www.calcalistech.com)

Over 90% of the activities on the Tel Aviv Stock Exchange are algorithmically performed, according to a new research published by Israel’s central bank last week. While the number of algorithmic automated high-frequency trading (HFT) activities on the exchange is higher than most stock exchanges, the actual rate of transactions they execute, between 23% and 35%, is significantly lower than global standards, the report said.

Global Algorithmic Trading Market 2018–2025 by Business Players: Virtu Financial, KCG, DRW Trading, Optiver

(threepmnews.com)

Geographically, the global Algorithmic Trading market is designed for the following regional markets: USA, EU, Europe, China, Japan, Southeast Asia, India. It also studies the revenue market status, analysis of main manufacturers. It deciphers the Sales Price and Gross Margin Analysis and Global Sales Price Growth Rate, Marketing Trader or Distributor Analysis. The role of traders and distributors is emphasized in this research. The complete analysis of Algorithmic Trading Market on the global scale provides key details in form of graphs, statistics and tables which will help the market players in making key business decisions.

Wall Street Finds Limits with Current AI Applications

(www.wsj.com)

“A lot of work needs to be done to translate (AI) advancements into benefits for finance,” said Ambika Sukla, executive director of machine learning and AI at Morgan Stanley, at an AI conference Tuesday. “As we work on some of these new models, it’s important to proceed carefully and have a human in the loop.”

Machine Trading: Deploying Computer Algorithms to Conquer the Markets

(www.wiley.com)

Algorithmic trading is booming, and the theories, tools, technologies, and the markets themselves are evolving at a rapid pace. This book gets you up to speed, and walks you through the process of developing your own proprietary trading operation using the latest tools.

Comparing 3 Different Types of Neural Network Architectures in Finance

(blog.alpaca.markets)

When working on a machine learning task, the network architecture and the training method are the two key factors to turning a set of data-points into a functional model. But where should different training methods be applied? How do they work? And which is “best”? In this post, we list up three types of training methods and make comparisons among Supervised, Unsupervised and Reinforcement Learning.

Coinscious Introduces Crypto Prediction Machine Built to Synergize AI and the Blockchain

(www.benzinga.com)

Every day, people spend significant amounts of time reading financial news and checking cryptocurrency prices, gathering information that they hope can lead to better decisions. However, the quantity of information available is overwhelming and calls for effective tools and suitable methodologies to enable us to distill data into actionable insights. By processing large data sets quickly, machine learning algorithms can use news sources such as the Financial Times, The Washington Post, or Twitter to provide key insights.

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Algo Trading News Headlines 8/2/2018

Fondex simplifying copy and algorithmic trading for its growing customer base

(www.worldfinance.com)

Traders can create algorithms with varying degrees of complexity. They can automate only a part of their trading strategy so as to avoid monitoring a chart, or they can create complex algorithms that read multiple markets and time frames, use multiple indicators, and employ sophisticated risk management systems that even take into account calendar events and news.

Photo by  Kelly Sikkema  on  Unsplash

Former High-Speed Trading Executives Allege ‘Tyrannical Coup’ at Quantlab

(www.wsj.com)

A leadership fight has broken out over one of the world’s most secretive and profitable high-frequency trading firms, pitting a beret-wearing mathematician against a former business partner and a Ukrainian physicist.

Four simple steps to creating a Trading Bot without any Coding skills

(smartereum.com)

Most important is the fact that any trader can transform their own peculiar trading strategy into an automated system without any special expertise that is beyond typing in plain English.

Algo Trading for Dummies — Building a Custom Back-tester

(blog.alpaca.markets)

Building a back-tester is a fantastic conceptual exercise. Not only does this give you a deeper insight into orders and their interaction with the market, but it can also provide the framework for the order handling module of your trading bot.

Tradingene, the new way to invest in trading algorithms

(www.globalbankingandfinance.com)

The platform’s marketplace for trading algorithms and subscription plans were released this week, bringing trading algorithms to retail investors and creating new investment opportunities.

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Algo Trading News Headlines 7/27/2018

INSIDE SCOOP One Market-Beating Quant Firm Was Buying Facebook Last Quarter

(www.barrons.com)

By their nature, quant firms — known for their rapid trading — may hold a stock only for as long as it takes to eat a candy bar. Yet a look at how Acadian’s positions have changed over the course of a quarter offers insights into the longer-term strategy of the market-beating money manager.

Screen Shot 2018-07-27 at 12.12.13 PM.png

The Problem With Algo Trading

(seekingalpha.com)

Everywhere you look there are robots taking over. Even in markets! With the rise of quant trading, AI, algos, and everything else, is there even room for us human traders?

Algo Trading for Dummies — Implementing an Actual Trading Strategy

(blog.alpaca.markets)

While most strategies that are successful long term are based on a mix of technical and fundamental factors, the fundamental behaviors which are exploited are often very nuanced and vary hugely, so its hard to generalize for an article. As such, we’ll be focusing more on the tools and methods for making strategies based on technical analysis.

Automated Trading Industry — Leading Key Companies

(thestockanalysis.com)

Some of the key players influencing the market are Citadel LLC, KCG Holdings, Virtu Financial., Trading Technologies International, Inc., InfoReach, Inc., Tethys Technology, Inc., Lime Brokerage LLC, FlexTrade Systems, Inc., Tower Research Capital LLC and Hudson River Trading LLC among others.

This company changes the DNA of investing — through machine learning

(thenextweb.com)

Now that it is possible to comb through the behavior patterns of millions of traders and use algorithms to understand how they think, social trading networks, such as eToro, add another dimension of information to this process.

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Algo Trading News Headlines 7/26/2018

Look Ma, No Code! Meet The IITians Who’ve Built A Code-Free Algo-Trading Platform

(inc42.com)

“Currently, almost 42% of the trade in the Indian market is done through automated algorithmic trading systems. But most of this trading activity is done by high net worth individuals (HNIs) and AIMs. We feel that the retail guys haven’t been given enough horsepower in it. So, we are trying to do just that,” says Ayush Gangwar, CEO of Kuants.

Photo by  Tra Nguyen  on  Unsplash

Photo by Tra Nguyen on Unsplash

Data, Data, Data! 11 Great Financial Data Vendors

(blog.alpaca.markets)

Whether you’re a financial firm or an individual trader, financial data is key for putting together any good strategy. With so many vendors on the market today, many good options get lost in the noise. Here are 11 great financial data vendors.

Can using Bitcoin trading robots help you earn money?

(ambcrypto.com)

With a set of pre-written codes that help in directing the Bitcoin Trading Robots take decisions on your behalf. Moreover, one can find these robots to be more intelligent in it and thus learn from the market trends as well.

New course in algorithmic trading at Saïd

(cherwell.org)

The technique works through using algorithms to replicate patterns in behaviour, and using the resulting estimates to make investment choices, removing human bias and emotion altogether.

Although algorithmic trading has been used for some time, its dominance in financial sectors is growing, and is estimated by the School to account for 20% of hedge funds.

Quant hedge funds lose their allure as performance sags

(www.ft.com)

Investor inflows to computer-powered “quantitative” hedge funds have halved this year to the most sluggish pace since 2009, after a spate of poor performance from many of the industry’s biggest players.

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Algo Trading News Headlines 6/28/2018

Oil Hedge Funds Struggle in Age of Algos

(www.wsj.com)

Raw materials have staged a powerful rally over the past year, but that hasn’t helped some of the biggest commodities hedge funds, which are closing up shop to a degree not seen since at least the turn of the century.

Photo by  Zbynek Burival  on  Unsplash

I Built a Go Plugin for Alpaca’s MarketStore as a College Intern

(blog.alpaca.markets)

For this blog post, I’ll be going over how I created the plugin from start to finish in three sections: Installing MarketStore, understanding MarketStore’s plugin structure, creating the Go plugin., and installing the Go plugin.

Man Vs. Machine: Credit Suisse Finds Renewed Value In Human Traders

(www.forbes.com)

If we take into account the shift from active fund management to passive investing, firms have limited trading opportunities that serve hedge funds. Also, sometimes the most difficult trades are often the largest.

AI Trader unveils its OCO Trading MODE to cryptocurrency investors

(blog.coinspectator.com)

According to its website, AI Trader “uses Artificial Intelligence to identify patterns from big data processed by the program to recognize trends and autonomously process buy, hold and sell orders based on current market events.”

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Algo Trading News Headlines 6/5/2018

Commissions Slump as Mifid II, Algo Trading Take Bites Out of Brokers

(www.waterstechnology.com)

The commissions that brokers take from trade executions dropped sharply in the first quarter after the enactment of new European rules on research unbundling, increasing downward pressure on an area that has already felt the effects of moves away from high-touch strategies.

Photo by  Markus Spiske  on  Unsplas

Photo by Markus Spiske on Unsplas

Welch: A super cycle has arrived

(www.agrinews-pubs.com)

“The reemergence of the algo boys and the HFT (high frequency trading) funds has sparked the largest rally with commodities in eight months. After declining for a record five years in a row, it seems the odds are high that hard assets in general will post a year-over-year gain. For agricultural producers that is great news because selling into a rising market is far more profitable than selling into a declining market.”

Ex-Goldman Sachs Programmer Seeks to Overturn Code Theft Conviction

(www.bankerandtradesman.com)

Former Goldman Sachs Group Inc. programmer Sergey Aleynikov on Monday filed a new challenge to his criminal conviction of stealing computer code from the investment bank when he left for another job. Aleynikov, whose case partly inspired Michael Lewis’ bestselling book “Flash Boys” on high-frequency trading in the U.S. equity market, previously had his conviction overturned by the judge who oversaw his 2015 trial in Manhattan Supreme Court.

Making sense of quants

(www.asiaasset.com)

Finally, is quant the magic panacea and answer to the kind of cross-asset correlation that we saw during the global financial crisis? I doubt it. A black swan event, by definition, comes from where you don’t expect. If quant has helped iron out cross-asset correlation, then different forces will probably come into play to bring on the next crisis — or it wouldn’t be a crisis. And as more and more quant funds start playing on particular risk factors, their behaviour is bound to influence the market, which always reacts on itself. Quants may start to influence the very terms of the equations they seek to rely on. That is one way that crises tend to develop.

New Report: Algorithmic Trading Market — drivers, challenges, key trends, standardization, deployment models, Sales Market Comparison and strategies

(businessinvestor24.com)

The report represents a thorough review of the entire growth trajectory of the worldwide Algorithmic Trading market over the span of the forecast period. Different sections have been taken into consideration to give the readers an all-round perspective of the entire market scenario.

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Algo Trading Daily News Scan by Alpaca - May 17th 2018

The 25 Highest-Earning Hedge Fund Managers And Traders

(www.forbes.com)

In total, the 25 highest-earning hedge fund managers and traders made a combined $16.8 billion in 2017, making it the best year for the top hedge fund managers since 2013. Forbes includes in its analysis hedge fund managers and traders who now mostly or even exclusively manage their own money and some of them can be found in the top 10 highest earners of 2017.

 

A Quantitative System For Trading Netflix Stock

(seekingalpha.com)

Knowing that the stock did so well over time, you may feel inclined to believe that maybe holding Netflix stock was not such a big challenge. Nevertheless, the stock lost more than 70% of its value in three different years: 2002, 2004, and 2011. In addition to that, Netflix had two more years with drawdowns of more than 50% in 2008 and 2012.

 

Simple way to come up with trading strategies using order flow data

(alpaca.markets)

We can see that the average next-day returns are almost monotonically increasing with the previous day’s order flow. The spread between the top and bottom quintiles is about 12 bps, which annualizes to about 30%. This doesn’t mean we will generate 30% annualized returns, since we won’t be able to arbitrage between today’s return (if the order flow is in the top or bottom quintile) with some previous day’s return when its order flow was in the opposite extreme. Nevertheless, it is encouraging.

 

Algorithmic Trading and TCA Adoption Driven by FX Global Code

(www.tradersmagazine.com)

Trading electronically in FX has been commonplace for years through Request-For-Quote (RFQ) or click trading. However, the increasing fragmentation of liquidity, accelerating speed of ECN matching engines and market participants, coupled with the proliferation of new trading tools, has created a whole host of fresh challenges and opportunities for corporate treasury departments.

 

Computers drive trading in coffee and cocoa markets

(www.ft.com)

Specialised markets such as cocoa and coffee are becoming the next frontier for the waves of buying and selling generated by algorithmic trading, which has long since carved out a presence in currencies, equities and interest rates.

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