Quants & HFT
One of Edge’s main differentiators?
The capacity to Develop AND Manage AND Execute, within a fully regulated environment, highly sophisticated Quants & High Frequency Trading strategies supporting up to 50,000 orders per second.
We strongly believe that the future of our Industry lays in the development of Added Value services to Margin Trading, which is why we are investing extensively into Quants, HFT, and Asset Management activities.
We attracted some of the most experienced developers from the Institutional Banking space to structure and run Edge’s Quants and Asset Management business divisions. We aim at addressing the high-end Retail market as well as Small and Midsized institutions (Banking and Asset Management) with such solutions.
Edge’s Clients and Partners can now benefit from a direct access to proprietary Quants and Algos to manage their own funds, or their clients' funds.
Our Quants and HFT strategies bypass the MT4 platform’s limitations and instead connect to the markets via Binary Protocol (i.e. far superior to FIX API). They are powered by Edge’s proprietary “VFTS Core” server and frontend GUI, a truly cutting-edge IT infrastructure capable of executing up to 50.000 orders per second.
Our Partners do leverage from Edge’s infrastructure to launch a number of new products and services such as QUANTS, HFT and ASSET MANAGEMENT via our WL setup, alternatively by introducing these products via Introducing Broker Agreements, hence address a vast array of customers, expand revenue channels and further position their businesses as global industry players.
Edge is authorised and regulated to conduct Portfolio Management activities to all EU Member States.
Top Spin (family name code: VFTS)
Powered by advanced mathematical/quantitative formulas, Edge’s Top Spin black box is a proprietary German-engineered trading Algorithms specifically designed for optimum return under all market conditions.
Generating high volumes from scalping ,hedging market positions and trend following positions. The uniqueness of Top Spin is represented by the fact that Top Spin operates as a volume-based rather than a performance-based strategy.
Top Spin focuses on generating high volumes with a basic performance. It has been specifically developed and extensively tested to generate brokerage trading revenues from Commission charges.
This Commission-based business model is ideal to any Execution Only brokerage, hence fully supports kick-back models applied to both partners and end-clients revenue models.
Therefore, Top Spin is trying to decrease the trading risk by generating more volumes to add a new dimension and source of income to investors and introducers as well.
In other word, Top Spin trades large volumes from small but numerous trades, see indicative trading volume figures below:
- Order frequency:
100 - 2000 orders per day (depending on market conditions)
- Asset class:
FX (EUR/USD , AUD/USD, GBP/USD, and USD/JPY);
CFDs on Indices (DAX and Dow Jones)
- Trading hours:
- Trading style:
Scalping / Hedging
- Trading Flow:
Considered by our LPs as clean (no arbitrage or spike hunting)
- Average Performance:
2% per month based on pure performance and rebates
- Minimum Investment:
10 000 €
More about Quants & HFT
The interaction between Technology and Economics in Financial Markets has revolutionized the process of Trading Strategies in Financial Institutions. Decisions that used to take hours in the past are now made within seconds. In our days, we can use analytical Algorithmic Systems that compute large amounts of data and mitigate risk in real time to achieve optimal execution strategies through unique configurations.
The tools needed to participate in such Electronic Trading environments consist of a computer and software linked to a trading platform. Efficiency in Execution depends on the computer and software characteristics as well as on the algorithms implemented for targeted trading objectives.
Although there are various algorithms in the market, none can be adjusted to the different levels of risk investors are willing to take. A Quant & HFT Desk is responsible for the Research and Development of such models that would satisfy any client’s investment needs, i.e. investment returns higher than interest rate or stock exchange performance.
The Finance Institutional Industry is currently under reconstruction, and firms are setting up more sophisticated systems that provide more sophisticated analysis, strategies and techniques via Quantitative Analysis, Quantitative Strategies, Algorithmic Trading, High Frequency Trading, Black Boxes and Grey Boxes, etc. in order to compete in the market.
On this particular subject there is not a lot of literature covering algorithm development and implementation and the existing research cannot always justify the results. This is why Edge's Quant desk does not limit itself by solely analysing data but also by providing end products (Algorithms) that can be tested, modified and produce tangible results.
The process of Algorithmic Trading combines a variety of fields such as:
- Human Behaviour (i.e. what drives people desire to buy or sell)
- Computer Science and Artificial Intelligence (i.e. how can we integrate intelligence in a computer systems, how can systems learn and re-adjust)
- Mathematics (i.e. how functions can be adjusted in order to justify right decisions, as well as quantitative approaches to future financial behaviour and probabilistic approaches to trading actions).
Therefore the main complication remains to incorporate all of the above into trading frameworks in order to create specific Algorithms for optimal Trading depending on risk-reward ratios.
Edge Brokers' Quant Desk focuses on producing Algorithmic Trading Systems (i.e. computerized systems) by implementing deferent risk metrics (i.e. Risk Management) with the aid of signals (i.e. Optimal trading Points) in order to achieve Optimal Trading Strategies.
It researches the various conditions of a trade and distinguishes what characterizes a trade as optimal, and how price and volume affect the market equilibrium state.
Further, it researches into risk assessment, i.e. quantitative grouping of data, statistical interpretation, ratios, comparative variables, behavioural finance, etc. in order to understand how to manage risk and learn from a number of available options.
It also investigates Algorithmic limitations and advantages of the computing decision process.
Taking all the above into account, Edge's Quant Desk is able to create custom Algorithms depending on the risk and return clients are willing to take (i.e. higher risk investments should account to higher expected returns).
Finally, once set up and tuned on the necessary variables, any Quantitative Trading Algorithm should be able to work on its own, with Human Monitoring, and identify and distinguish what makes a right and a wrong decision, making sure that Optimal Execution will occur.