All posts by Trading Technologies

When Is a Long Shot a Good Shot?

By:
LinkedIn

I recently was interviewed for a podcast by Chat With Traders. I spoke about expected value and the importance of process over outcome. It’s one thing to discuss in general terms the idea of positive expected value and the idea to focus on process rather than outcome. It’s another to actually see it in action.

I’d like to go through a trade we recently had on. This will make the concept concrete.

The idea of expected value is relatively straightforward: one must combine the probability of a financial event occurring and its outcome. For example, consider an investment where there’s a 25% chance of losing $10 and a 75% chance of making $10. Multiply the outcomes by the probabilities to get the expected value. In this case, 0.25 x -$10 + 0.75 x $10 = $5. That’s easy enough.

thetreeofpossibilities 

The tree of possibilities.

Would you play that game? You likely would.

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Extending the TT® Ecosystem

By:
LinkedIn

Hong-Kong-skyline 

In the last two months, we have accomplished a significant milestone in the development of the TT platform. We’ve rolled out access to 16 new markets, bringing TT very close to market parity with X_TRADER®.

Adding new markets to a trading platform is not necessarily newsworthy. It’s what a software provider like us does multiple times a year, year after year. However, this mass rollout over the last two months has been unique in the way that 10 of those markets were integrated into TT.
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Risk Management for a Volatile Market: Prepping for 2016

By:
LinkedIn

As we begin 2016, there is once again a lot of intrigue in the markets. High volatility, uncertainty in China and an election year in the U.S. are just a few factors holding sway over the economy. Simply put, there’s a lot to think about for those who earn a living in the markets.

That’s why we, in conjunction with Advantage Futures and the Chicago Board Options Exchange (CBOE), brought together leaders in the field to offer insight and predictions on how the year will play out. We co-hosted an event at our Tech Tap entitled, “Risk Management for a Volatile Market: Prepping for 2016.” At the center was a panel discussion moderated by Jay Caauwe, managing director of CBOE Futures Exchange (CFE). I sat on the panel along with:

  • Larry Schulman, CEO, Cheiron Trading LLC
  • Henry Carter, Head of U.S. Index Trading, IMC
  • Euan Sinclair, CEO and Co-Founder, FactorWave

 
The conversation covered a wide range of topics and included a number of interesting points that I wish we had more time to discuss. If you were unable to attend, read on for some of the key takeaways offered by our panelists.
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No Compromise: The Next-Gen TT Platform

By:
LinkedIn

Few things are transforming software, business, and nearly every aspect of our lives like cloud computing and software-as-a-service (SaaS). It’s easier than ever to build and deploy new applications, and the result is a plethora of new companies vying for our attention across nearly every domain. The cloud revolutionizes data collection and analysis and empowers SaaS, making it simple to distribute software to anyone, at any time, in nearly any location.

It’s no surprise, then, that the cloud is finding its way into trading systems as well. TT was an early adopter of cloud technologies in the trading space. We began talking about our next-generation trading platform in early 2014, but a year and a half later, and particularly with new entrants using similar terms, I think it’s important to ask: what does it mean to be a “cloud trading platform,” is there a difference between SaaS and “cloud,” and where does TT fit into the mix?
Next-Gen TT Trading Platform

New technologies such as HTML5/Javascript make the next-generation TT platform accessible to users via the internet, mobile device or desktop client.

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Order-Cross Prevention on TT: Come and Get It

By:
LinkedIn
Source: Nanex
Source: Nanex

Not long ago, we published the blog post All Washed Up: Putting an End to Self Trading. We’ve since officially released our order-cross prevention functionality on TT, which provides users with the option to transfer a position when two opposing orders within the same group match on price.

We’re excited to make this feature available to our users, and we’re already working on enhancements. For example, within a few weeks, we’ll provide the ability to match exchange spreads and synthetically generate the spread and leg fills for each account.

As mentioned in my last blog, stay tuned to learn more about this feature as we continue to iterate and roll out new enhancements. In the meantime, feel free to reach out to us to learn more or to schedule a product demo. Or try TT yourself at trade.tt—it only takes a few seconds to create a free demo account.