Can Algorithms Be Tailored to Portfolio Needs?
Traders Magazine, November 2005
Traders are increasingly worried about market volatility. Move a basket of stocks quickly and market impact can run up costs. Trade the basket slowly and opportunity costs can exact a hefty price. Yet algorithms, designed to mitigate these market volatility issues, are often missing the mark because many were not designed for trading large numbers of issues. Indeed, many of these mathematical marvels will miss the VWAP benchmark by half a penny or so, says a firm selling its own brand of algorithmic solutions. Susquehanna International Group (SIG) claims it has a better idea. The firm has released a new portfolio algorithm, Tempo (Targeted
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.