Buyside traders that utilize FlexTrade’s predictive analytics system to help decide which trades are best to execute are getting a new tool to help them trade.
FlexTrade, a provider of order and execution management systems is now offering traders a daily blog, dubbed Daily Alpha Blog, designed to help the buyside locate more alpha in his trades. The blog is designed to maximize the alpha forecasting capabilities inherent in the company’s predictive analytics trading solution, FlexEdge.
FlexEdge Alpha is a trade-timing tool based on a rigorous research effort that supplies intraday and overnight return forecasts. The Intraday forecast horizons range from 15 to 375 minutes in increments of 15, while the overnight forecasts include 1-day and 2-day horizons. Over the past two years, FlexEdge Alpha claims its forecasts have averaged a signal return exceeding 15 bps (achieved at FlexEdge’s longer intraday forecast horizons).
Institutional traders from the buy- and sell-side can use FlexEdge Alpha to modify the schedule of child orders to obtain better fill prices.
How does it all work?
Every business morning the blog will update with a new post highlighting the previous day’s alpha performance of a specific stock drawn from the S&P 100. Each post contains four primary sections:
-FlexEdge Alpha Performance – Details and chart for an individual S&P 100 stock.
– Value Added Analysis – Shows annual trading improvement using actual signals and simulated trades.
– Monthly Performance Summary – Demonstrates signal performance over a trailing 30 day period using the FlexEdge OptimalFactor model, which generates consistent returns at FlexEdge’s shortest forecast horizons.
– Relative Sector Wide Overnight forecast – Aggregates overnight symbol forecasts by sector to provide actionable insight.
To view the FlexEdge Daily Alpha Forecast blog sample, please visit click here.
FlexEdge Suite of Advanced Analytic Solutions
FlexEdge is a suite of trading analytics modules designed to give traders and portfolio managers the edge they need to effectively plan and optimize their investment process. These modules include:
-Predictive Analytics
The FlexEdge Predictive Analytics module provides traders with advanced forecasting capabilities for trading U.S. equities. Using a proprietary, model-driven approach, FlexEdge provides short-term return forecasts across overnight and intraday time horizons, as well as intraday volume forecasts for use in sell-side and buy-side settings.
-TradeMap Execution Strategy Designer
The FlexEdge TradeMap Execution Strategy Designer allows traders to interactively build an automated trading strategy that is comprised of a series of broker-neutral execution venues.
– Portfolio Trade Scheduler
The FlexEdge Portfolio Trade Scheduler enables traders to determine the best trading trajectory for their portfolios while minimizing market-impact cost and the risk of underperforming benchmarks.
