Pragma Securities, a provider of quantitative trading solutions, has released a new tool that allows traders to adjust their algorithmic strategies in real time in response to market conditions.
Adaptive Overlays is a suite of controls that allows its user to implement additional parameters and options into existing strategies without the need for custom development or manual intervention.
The tool can be configured directly through any standard order and execution management system, which means it can be applied to most algorithmic strategies from a variety of providers.
The controls, which can be automatically triggered by specific market conditions, include: ‘speed up/slow down’, enabling traders to speed up or slow down trading depending on performance relative to a benchmark, price point or other instrument; ‘would if I could’, which aims to trade a portion of the order more aggressively to meet or improve on a user-defined price; ‘crossing’, which routes a portion of the order to the dark using Pragma’s ONEPIPE liquidity aggregation services; ‘min/max % of volume’, enabling users to specify levels of volume participation; and ‘cash balanced’, which keeps the cash ratio of a basket within a specified dollar tolerance of a specified ratio.
“When it comes to algorithmic trading, the two most important factors to maximise trading effectiveness remain control and speed of execution,” said Doug Rivelli, CEO of Pragma Securities, in a statement. “In consultation with our customers, we’ve developed a suite of Adaptive Overlay strategies so market participants can gain near total control over how their orders operate within the marketplace. Conditions can shift quickly in today’s market and missed seconds can mean missed opportunities, so it’s absolutely imperative traders have the ability to quickly adapt their strategies without the hassle of manual intervention or any other delays typically found in other algorithms.”
Adaptive Overlays can either be configured directly through a trader’s front-end system, or can be hard-coded for proprietary front ends. The solution can also be accessed via Pragma’s executing partner, Weeden & Co.