Institutional broker Weeden & Co. and algorithmic trading solutions provider Pragma Financial Systems have announced that they are to enter into a strategic alliance.
The core of Pragma’s software is the Risk Adjusted Cost Evaluation (RACE) trade optimisation engine. By incorporating a client’s view of each stock’s expected return and risk factors, RACE creates an execution strategy that mirrors the actual goal of the trader and optimises the relationship between risk and cost.
“RACE allows clients to express their trading intentions with a full range of real-world parameters, and then optimises execution based on those intentions. In essence, our algorithms customise themselves to every individual trade a client executes,” says Lee Maclin, director of research, Pragma.
Pragma and Weeden say they share a philosophy of openness with clients. “We take a very consultative approach with our clients. While many often claim to have some ‘secret sauce’, Pragma is an open book,” says Doug Rivelli, managing director, Weeden.
“We welcome discussion with our clients about our methodologies and are willing to share our research with them,” adds Lee Maclin, director of research at Pragma. “We find that the more we reveal, the more our clients appreciate the significance of the problems we’ve solved,” he continues.