Algorithmic Trading
OpenVivo uses technology to leverage the models that we produce. In doing so, we automate the process of buying and selling asset classes in the energy market.
Algorithmic trading can involve programming a 'bot', a trading entity that makes trades based on instructions it's given from the model that we use. These models can be basic, regressions and trends, and can exploit market dynamics like momentum to make trades faster and more effectively than a human could. These models can also be significantly advanced, we've had great success applying Agent-Model dynamics to the market and use adversarial neural networks to give us the edges on our competitors.
However, we also see a huge opportunity in machine-learning assisted trading. This is when you use a machine-learning model to provide information that a human trader acts upon. This marries the enormous power of computers to sift, list and analyse patterns in real-time and feed the actionable insights to the instincts of a human operator. Nowhere is this more impressive than in the energy space, where relationships between brokers, charterers and ship owners is the crux of industry.
What is Algorithmic trading?
Algorithmic trading (automated trading, black-box trading or simply algo-trading) is the process of using computers programed to follow a defined set of instructions (an algorithm) for placing a trade in order to generate profits at a speed and frequency that is impossible for a human trader. The defined sets of rules are based on timing, price, quantity or any mathematical model. Apart from profit opportunities for the trader, algo-trading makes markets more liquid and makes trading more systematic by ruling out the impact of human emotions on trading activities.