Adaptive models, dynamic models, quantitative models… There are various models utilized by the market makers, but no matter what kind of models are chosen, market maker deal with an essential issue in the secondary market – liquidity. As one of the major market participants, market maker can improve the liquidity of the marketplace via placing quotes and getting alpha through bid-ask spreads.
Simple Fintech (www.simplefintech.io), a digital currency market maker, is building an AI automated trading, risk control and evaluation system that can match trading strategies intelligently according to different scenarios and market conditions on the basis of continuous optimization by referencing a strategy portfolio through deep learning. It could essentially provide more optimal trading strategies and improve the efficiency of transaction matching. “With the launch of the AI automated trading, risk control and evaluation system, this will work in tandem with the professional trading team to form an “AI + human” dual strategy model, that offers a two-level safeguard for trading security 24/7. This service will soon be available to cryptocurrency exchange partners, further improving the liquidity of the cryptofinance ecosystem,” said Cheng, the Director of Technical Development for Simple Fintech.
Liquidity is the lifeblood and the developmental cornerstone of financial markets. Taking cryptofinance as an example, if the cryptocurrency exchange hopes to stand out from the many competitors in the landscape, differentiated asset strategies, currency listing strategies and marketing strategies are essential aspects, but it is the Liquidity that builds the foundation of its foothold in the industry and performed as the vital role for sustainable development. “We use AI technology to improve the objectivity and efficiency of market making strategies. AI technology and deep learning algorithms can effectively process millions of data points in real time, capturing more information than a simple statistical model can provide, therefore more accurately tailor trading strategies,” Cheng added.
Artificial intelligence will oversee the whole process of learning and simulating. After the real-time evaluation results are generated, the trading team of Simple Fintech will insert this information into the decision-making process, and by fully integrating the AI and assessment system, intelligent choices with optimal trading executions can be made in a dynamic market environment. In short, it will provide the exchange with a more consistent and less risky solution for liquidity enhancement.
With the rise of AI, blockchain and other emerging technologies, the financial industry is stepping into a new stage of integrating finance with technology. Using AI technology for strategic market making can reduce the risk inherent in less efficient pure human operations. Simple Fintech is a next generation liquidity service platform with AI technology as the core driving force. The founding team members consist of seasoned traders, senior engineers, AI scientists and other finance and tech experts, who combined have provided liquidity services to nearly 100 institutions around the world.