Schott OFT (www.schott-oft.com) announces the enhancement of its D-Trade with Proprietary Trading AlgoT™ Investment Strategies Tools for trading enabling clients to trade the spread between any two currencies.
Investors typically buy one currency and sell another when the distance between the two prices moves towards an extreme value and away from an observed relationship.
The Schott OFT AlgoT™ Scaler Trader algorithm allows clients to create conditions under which a long position in one currency is built while simultaneously creating an offsetting short position in the other. The Schott OFT AlgoT™ Scaler is named because investors can “scale-in” to market weakness by setting orders to buy as the market moves lower; similarly, sell orders can be “scaled” into when a market is rising.
The Schott OFT AlgoT™ Scaler Trader algorithm can be programmed to buy the spread and subsequently take profit by selling the spread if the difference reaches predetermined levels set by the user. Orders can be entered using net currency price differences or by using credit or debit ratios.
Investors can set their own parameters to determine the starting number of contracts and maximum size of the position they wish to create and must determine the distance between each incremental buying price. In addition the user may vary the increment over time. The user can choose between limit orders and market-if-touched orders to start the order process.
The Schott OFT AlgoT™ Scaler algorithm is available to all of Schott OFT customers through its trading software at no additional charge.
Algorithmic trading, also called automated trading, black-box trading, or algo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.
Algorithmic trading is widely used by pension funds, mutual funds, and other buy side (investor driven) institutional traders, to divide large trades into several smaller trades to manage market impact, and risk.
Schott OFT (www.schott-oft.com) is a commodity broker for futures and commodity trading, which specializes in Broker Assisted trading at discounted commission rates. Schott OFT offers Discount Online futures trading account plans and Broker Assisted commodity account plans to meet the needs of serious commodity futures traders and commodity option traders. Our mission is to provide state of the art order entry capabilities; extremely competitive commission rates and the professional service that today's futures trader’s demand. We strive to maintain our solid reputation by providing our clients with competitive rates and quality service second to none.
Schott OFT Announces Launch of Proprietary Trading AlgoT™ In