Foreign Exchange (FX) and Currency Futures
A trading firm client wanted to expand from trading of OTC Foreign Exchange (FX) to a more efficient and profitable automated trading strategy that their traders had determined would benefit from the introduction of currency futures.
When entering the currency futures market the traders wished to stay mainstream in their use of technology. Reducing operational risk would be best served if they kept their introduction of automation to known industry components. As such the client desired to utilize the industry leading Trading Technologies X_Trader platform.
How to Introduce Automation?
Trading Technologies has many automation tools. These include user centric tools (e.g. autospreader), graphical algo tools (ADL), MS Excel™ integration, FIX Protocol integration, and Application Programming Interfaces (APIs).
The trading strategies needed to make decisions fast, and trade fast. The client decided that since their FX trading utilized APIs they would take a similar approach with futures traded on TT. They would be able to risk manage, and view all orders in TT but still have reasonable quick access through the APIs. Source code versioning with their proprietary code would be beneficial for any future inquiry from compliance or a regulator could be answered quickly.
Reducing Implementation Risk
The client wanted to have their base strategies built by an experienced integrator in order to reduce implementation risk. Time to market was essential. The client simply did not have the experience with the TT APIs. They wanted a technology implementation consultant that could build the algo and integration. For this they chose Edge Financial Technologies.
Need to Maintain Trade Secrets
Edge was engaged after signing a strict non-disclosure agreement. The client then provided base transactions and simple algo descriptions in order to keep Edge from learning the “Secret Sauce.”
The project was anticipated to take up to three months for full integration. The client anticipated that the API consultant would take at least 4 weeks.
Edge Financial Technologies’ was able to review the client integration and develop a highly reliable, easily supportable, custom solution in a few days. This is possible because of the trading system and TT experience of the Edge team. As such, the client chose to extend the consulting scope to include development of the initial quantitative trading algorithms.
Ten days to get client’s strategies began trading.
Edge architects reused previously developed components and leveraged prior knowledge of the TT APIs to get the customer connected in record time.
Learn more about our bespoke or custom software development for algorithms.