Algorithmic Trading Imperative #2: Customize Quickly

An increasing trend in today’s algorithmic trading space is dissatisfaction with commoditized black box algorithms provided by brokers. If everyone has access to the same algorithms, where is the advantage? Increasingly, sell-side prop desks and buy-side hedge funds are developing personnel capable of designing differentiated algorithms – but a black box approach doesn’t empower the capability of these algorithmic architects.  A white box approach allows firms to leverage their intellectual property and create the secret sauce that offers competitive advantage. Firms know – and trust – the ways in which an algorithm works, can design new algorithms based on existing ones and can combine algorithms in new and interesting ways (for example, to develop multi-asset class trading algorithms).  Graphical CEP development environments, designed for traders, not IT, are becoming increasingly important development tools for and enables the rapid evolution of sophisticated algorithmic trading strategies.