In 1998, the Securities and Exchange Commission (SEC) authorized automated electronic exchanges in the U.S. markets. Barely a year later, was the first High Frequency Trading (HFT) electronic system developed, cutting down trade execution to a few seconds. By 2010 this had been reduced to milliseconds and as of today we are dealing with a hundredth of a microsecond.
The possibility now inches towards picoseconds and nanoseconds. To further illustrate the scale of this type of transaction, modern HFT systems can even trade a profit of several cents per trade and the process can be repeated several thousand times a minute!
What is at play in this High Frequency Trading system is known as algorithmic trading? In this kind of trading all the financial information needed for trading is run through computer codes. This information is not delivered as stories and sentences. It is processed as data in the form of hard, actionable data clusters which the news represents.
“Algorithmic trading is becoming more common to the everyday investor,” said Dr. Douglas Z. Y. Leong, Chief Executive Officer of OTM Capital. “Indeed, intelligent investors understand that markets are too efficient; hence consistent returns with minimal capital drawdowns are only possible through rigorous fundamental research, thousands of small margin transactions and speed of light execution.
Basically, this is how our algorithmic trading platform works – it analyzes data streams, detects trend patterns, and then spreads the risks by splitting large trading lots into multiple smaller orders.”
The algorithmic trading platforms, was developed in 2011 by OTM Capital. The platform is capable of processing vast amounts of fundamental market data in such a way that its robotic analytics and trading computer modules can read and understand. It does this by scanning news feeds from many different financial data providers, such as Bloomberg or Thomson Reuters, for specific textual patterns that indicate market trends. These textual clues are then transmitted in machine-readable format to the robotic subscribers which ‘listen’ for signal patterns and parse them before executing the resultant investing cues. The platform also aids in strategy development, technical analysis and thorough back testing across historical trading data. After years of development, we have reached the point where it is making our investors and ourselves net investment income even higher than we predicted. At OTM Capital we have proudly designed a perfect trading platform that allows accurate price determination and instant order execution to spur maximum profits during each trading session, with minimal risk,” said Dr. Douglas Z. Y. Leong, Chief Executive Officer of OTM Capital.
Ironically, by investing in a quantitative fund an investor is making a highly qualitative decision. Studies into professionally managed quantitative funds have shown growth considerably higher than that in the field of traditional stock-market investing. Algorithmic funds can be an ideal way to add diversification to a traditional investment portfolio, and to increase overall returns. Of course, these portfolios can suffer losses, if no trends are formed within a trading session, but as a rule those are more than covered with subsequent profits.
Why Choose OTM Capital
OTM Capital is established with a combining experience in the financial market of more than 10 years of successful, practical, hands on in the risk management & financial industry.
This new venture solidifies OTM Capital’s reputation as a business leader in the international financial industry and stems from our ambition to be instrumental in setting new high standards for index trading in the ever-changing global marketplace.
Company Name: OTM Capital
Contact Person: Dr. Douglas Z.Y Leong
Phone: +45 3699 2772