Algorithmic trading is a new way of trading that is highly popular with institutional investors and is gaining rapidly in the market. The rapid development of algorithmic trading has had a profound impact on the overall efficiency and micro-structure of capital markets, asset pricing, portfolio investment, and risk measurement could be revolutionized as a result.
The Development of Algorithmic Trading
The algorithms used by the Exchange have evolved over time and have now been used for three generations:
- 1st generation of algorithms executed strategies targeting benchmarks generated by the market itself, such as volume-weighted average price (VWAP) or Average of daily OHLC prices.
- 2nd generation algorithms set the benchmark for strategy execution around an order, with the objective of minimizing the difference between the decision price and the final traded price (or minimizing execution variance).
- 3rd generation algorithm uses a dynamic execution strategy that is re-evaluated each time a trade is decided, making timely and adequate adjustments to the aggressiveness of the trade in response to changes in market conditions.
In simple terms, quantitative trading is a form of trading that uses computer technology and mathematical models. It helps to develop trading strategies for investors and allows computers to execute trading strategies to achieve higher returns. In foreign countries, quantitative trading is already a very mature trading tool. According to Bloomberg, the proportion of quantitative trading in the US securities market is now over 60%. Last year, the Financial Times, Bloomberg, Business Insider, and many other media outlets also wrote that there is now a growing demand for quantitative trading talent in the US.
OpixTech was founded in 2017 and relies on algorithmic trade execution to enter the market maker sector. Its algorithmic trade execution is designed to place orders through pre-designed algorithms based on mathematical models, statistical data, real-time market information, and other aspects of the order execution process that have been successful in the options, commodities, and equities markets. OpixTech’s algorithmic trading is fully owned and designed to provide clients with market-making solutions that reduce trading costs and increase trading efficiency.
Fintech and algorithmic trading are key investment priorities for OpixTech. We believe that OpixTech’s expertise, vision, and background are well suited to the growth opportunities in algorithmic trading and can make a big difference in it. Currently, the OpixTech team consists of over 100 people, the majority of whom are technical staff. It is headed by Joseph Culter as Chief Executive Officer and Alex Rowayne as Chief Technology Officer.
