Why Should You Use Spotfire® Streaming for Portfolio Strategy

Like many traders and investors, you probably have portfolios made up of multiple symbols with different asset classes, which means you need to go through a lot of data to make a well-informed decision. The Wakett Framework, with integrated Spotfire Streaming® for portfolio strategy capabilities, takes that into account and improves your odds of a successful trade.

Symbol Strategy vs Portfolio Strategy: What’s the Difference?

We know that a sophisticated trader like yourself already knows the difference between a symbol strategy and a portfolio strategy. This breakdown, in fact, is more of a way of showing you just how advanced software that works on portfolio strategies needs to be.

So, what’s the difference?

• A symbol strategy is basically the concept of trading only one symbol. In this case, the main data required to make your decision on whether you should buy, sell, or hold on to your position is its price. Sure, you could use other macro or financial data to enrich your findings, but its ultimately the price that affects your decision.

• A portfolio strategy, meanwhile, sees you trading a whole portfolio made up of multiple symbols with different asset classes. This requires more complex data to feed your strategy, including the behaviours of the aggregated positions on multiple symbols.

Case Study: Why Portfolio Stragies Need Specialised Software

Let’s imagine you are trading EUR/USD with different strategies and with multiple timeframes. The net portfolio position on the EUR/USD will be the result of all the individual positions of the symbols inside that portfolio, so it makes sense to want to control the swap cost before rolling time at the end of the trading day. 

A portfolio strategy can be used to help you monitor the expected swap cost overnight in order to increase or reduce your market exposure in a bid to gain a particular level of return or cost. To do this, as well as to help you place orders and adjust the net market positions, your portfolio strategy needs data on the aggregated performance at portfolio-level.

That’s why software that helps with portfolio strategies needs to be able to do the following:

1. Synchronise position and produce intra-day valuations to feed your portfolio strategy;
2. Run and manage independent portfolio strategy orders from individual symbol strategies;
3. Manage the execution according to the market liquidity profile.

All this makes it clear that a successful portfolio strategy is no easy game... 

How Spotfire® Streaming for Portfolio Strategy Can Help You Improve Trading 

Thankfully, however, the Wakett Framework, through its integrated Spotfire® Streaming for portfolio strategy and its Event Stream Processing capabilities, lets you synchronise all the positions and market data required to take action in milliseconds. 

It also allows you to integrate Artificial Intelligence and Machine-Learning modules to feed this strategy, creating a powerful and scalable tool that will work to improve your strategy, your decision, and your success rates.

So, why not get in touch with us to discover how our software, which has modules developed  by TIBCO and Spotfire Streaming®, can help you improve your portfolio strategy and make your trading more sophisticated?