When it comes to financial trading, automation is the key to decreasing trading slippage and risk, increasing your ability for faster and more accurate decision-making, and saving time and money in the process.
Yet there are pitfalls to some of the automated trading software available out there.
In fact, most automated trading software falls into one of two categories it’s either off-the-shelf software that doesn’t really cater to your investment company’s specific needs; or else it’s über-expensive and aimed at large corporations that have IT experts on board to code and maintain the software, as well as mathematicians to oversee the process.
If you’re an SME, however, neither of these solutions make sense: one is just not good enough, and the other is way too costly to make it viable.
But there is a third option that makes perfect sense, and that is automated trading software that has been designed in a way that can be totally tailored to your needs, and which comes with outsourced experts that can ensure that it runs as smoothly as you need it to.
This software has some great benefits over the others which were previously mentioned:
- It allows you to turn unique ideas into automated processes using trading automation. These run on calculations that are specific to your needs. In other words, it can do exactly what you need it to do;
- It allows you to have custom code created so that it can work with the exact data you need. This data can be retrieved, processed, and analysed exactly when and how you need it to;
- It allows you to design multiple data flows and issue reports in whatever format you prefer, ranging from Excel sheets to PDFs. The information can also be displayed on a customised GUI.
- It allows you to set criteria by which the automated trading software can make decisions on your behalf; and
- It allows you to set parameters, which can then be used to alert you of any changes you may wish to be informed about.
All this is done on software that can easily be plugged into your existing framework, thus saving you development and maintenance costs. It also comes with easy-to-understand, front-end GUIs that allow you to make full use of the software without needing any knowledge of IT and quant trading software programming languages like C++, Java, and the rest.
But how can automated trading software be used?
Well, let’s imagine you are a portfolio manager, who needs to monitor and scan thousands of financial instruments. You’d need to do this according to your specific needs and rules, and then pick out which ones fit the bill, and then calculate or rebalance the best ones into your portfolio. Even after all that, you’d still need to monitor their performance, risk, and other metrics to keep on top of your strategy.
Now, if that sounds like a lot of work, it is because it is: as a human being, there’s only so much you can do before you get tired or bored, or make mistakes.
Computers aren’t like that, though. In fact, most of these tasks can be done by technology a lot more efficiently, as we now have the tools to aggregate multiple sources of data, apply your calculations in real-time, explore data by your custom models, and trigger actions when and as needed.
The best part, however, is that the level of automation to support your workflow can be designed around each investment style, so you always know exactly what is happening.
The software to do all this is already available and is cost-effective, both in terms of price and in terms of how much time it can save you. It’s also been created by financial and IT experts with over 20 years’ experience in both industries, adding to your peace of mind.
So, if you’d like to see how it could benefit you, check out our Strategy Automation solution page, and our CYBMIND product page, and get ready to use algo trading to make your trading, financial, and hedging processes faster, safer, and potentially more profitable.