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August 31, 2023 Case Study
Case Study
Hemanth BA 31 Aug
Introduction:
The world of financial trading is highly competitive, and the only way to gain an advantage over others is to use the latest technology. Algorithmic trading, a recent and effective concept in the market that refers to the use of algorithms in placing orders, has been seen as a revolution in trading activities.
Infomaze, one of India’s most reputed software companies, recently developed algorithmic trading software for a prominent stock broking firm in India. Our algorithmic trading strategies allowed the firm to engage in algorithmic trading with relative success. At Infomaze, we offer customized algorithm trading software to meet each client’s needs.
We present a case study describing one of our customers’ success in achieving high trading results with our specialized software for algorithmic trading.
Understanding Algo Trading:
Algorithmic trading, or algo trading, is an automated process that involves leveraging sophisticated algorithmic trading software to make rapid trades. Algo trading software built for customized needs by proficient algorithm trading software designers is more efficient than manual trading and has a higher success rate.
This involves consuming data, identifying trends, and acting fast to make profits and avoid losses as much as feasible. It involves using algorithms, data, speed, mild reactions, and control to make the most of every investment and cut losses as much as possible. Adopt algorithmic trading and watch your investment skyrocket.
Increasing Algo Trading Success Rate: A Case Study
The Challenge:
A prominent stockbroking company in India approached Infomaze to uphold the company’s strategies and develop algorithms accordingly. After exploring various options across India, they found that existing software lacked the required strategy and execution speed.
When they approached us with this opportunity, Infomaze had done a few other projects for various IT firms. Now, realizing that the proposed solution can be effective to such a degree, it is possible to add one more success story to the list of Infomaze’s accomplishments. This was something new to us initially, but today, we’ve become experts in this area and thus eagerly accepted the challenges of developing an algo trading software.
Software Journey:
We developed multiple smart strategies that executed multiple algorithms for various types of stock futures and stock options. Even though the company was familiar with most of the terms associated with the stock market, the project required an in-depth orientation of the overall environment, which required time and effort to better understand the terminologies as required by the client.
Infomaze’s top project managers and business analysts summarized their efforts and suggested the best solution that would surely exceed the client’s desired outcome of Algo trading software development.
Fast fact:
Algorithmic trading enables traders to execute high-frequency trades. Once measured in milliseconds, today’s trades can be measured in microseconds or even nanoseconds (billionths of a second).
The Solution:
Infomaze’s expert algo trading software developers have come up with an efficient and easy-to-use admin interface, empowering stockbrokers to:
- Explore different strategies and algorithmic trading systems.
- Create customer accounts.
- Track a strategy’s execution outcomes per minute to see the day’s progress.
- Check the efficiency of the algorithms on a daily or monthly basis.
- Some obvious advantages were tracking and visualizing investments’ progress and useful business intelligence tools that increased stockbrokers’ awareness of the positive effects of algo trading software.
The Achievements:
Scalable solutions were developed, making it possible for stakeholders to make changes to the strategies themselves without requiring the services of the developers. Hereby, they could attempt various approaches with effective trading decisions of which the required ones were used. Our solutions increased the algo trading success rate with remarkable improvements such as,
Enhanced Trading Success Rate:
This eliminated the possibility of trading failure for the clients, and the automated system was sufficient to perform the necessary work.
Reduced Operational Risk:
Reduced the rate of operational errors often witnessed when a business relies on manual trading since the role of people was decreased.
Improved Efficiency:
It ensured that the client grasped all the new opportunities in the market well, enhancing the performance of software trading.
Scalability:
Our algorithmic trading software developer team’s solutions provided to the client could expand the trading processes continuously due to the given solution’s versatility.
Did you know?
The success rate of algo trading is 97%
Once you set the desired trade parameters, the program will do all the work. Bots monitor your trades to ensure you don’t reach a loss point, leading to a success rate of up to 97 percent.
Advantages of Algo-trading:
Algo-trading has several advantages that make it beneficial for investors:
Best Execution:
It ensures that business transactions are made at the cheapest and highest prices.
Low Latency:
Prices can be changed instantly, and orders are placed at appropriate levels, thus ensuring that the buyer does not make the trade at the wrong levels.
Reduced Transaction Costs:
Provides a way of reducing the cost of acquiring security and selling.
Simultaneous Market Checks:
It could automatically analyze various market conditions at the same time.
No Human Error:
It reduces the effects of human interaction and errors such as bias in securities trading.
Backtesting:
Through historical and real-time data, traders can find the testing results on the effectiveness of certain strategies.
Conclusion:
Algo trading, the stock market’s future, uses artificial intelligence to eliminate human errors and reduce decision-making time. Algorithmic trading or automated trading systems are a well-structured and organized method to trade in stocks, which helps traders find out and implement particular trades more efficiently than any human trader. It assists traders in making trades at the best offer prices and prevents traders from making irrational decisions.
If you are a stock broking or a tech-oriented company looking for similar progress, Infomaze, one of the best custom Algo trading software development companies, is willing and ready to discuss and know your further requisites to enable us to provide you with a winning solution in developing customized algorithmic trading software.
Raise your chances of success in the stock market by investing in algo trading services now.
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