Is it possible your trading systems are trading with bad market data?
Market data is a critical component of any trading system including automated algorithmic engines. Every now and then bad market data creeps in to the market data stream, which implies algorithms or even human traders could be taking critical trading decisions with that bad data. What if an agent like EagleAi is employed to observe the patterns of market data for each and every symbol and report if it suspects any of the critical fields in the market data is deviant from what is expected based on patterns? Algorithms can take a cautious approach using those signals while operations team can investigate on that issue. Millions of dollars can be saved on bad trades using signals from EagleAi, which can operate on the sidelines without having to be embedded directly into the trading systems.
Advanced AI engine from EagleAi
EagleAi’s cutting edge Anomaly Detection techniques is built for massive scale trading flows. EagleAi will silently watch everything that is happening under the sun and it will automatically learn to detect trends at the client, trader, symbol activity, desk, division and system levels. Abnormal trends i.e. deviations from normalcy that cannot be detected with human eyes or even with any rules based engines is detected by EagleAi. Furthermore, EagleAi’s proprietary triangulation methods identifies the reasons behind the deviations which will help Risk Officers take corrective actions in record time.
EagleAi uses three or more Advanced Anomaly Detection models under the hood for each Trading Risk scenarios and it uses a voting mechanism to be certain that the issues raised by models have very high certainty of being a serious event or ‘True Positive’. Every ‘False Positive’ identified is used to further refine the model so that EagleAi learns to identify True Positives more accurately. So, you and your business can be rest assured the ‘Big Bird’ is watching out for you 24×7, 365 days a year and will alert promptly if something is amiss and needs immediate attention.
Sudden spikes in volume and price could be a useful trading signal
Sudden or anomalous spikes in volumes, price, option greeks such as delta, gamma etc can be caught by EagleAi easily. While the main purpose of EagleAi is to manage risks, in this case this could help in revenue generation and taking market opportunity while it exists by getting notified as soon as market opportunity is created. Even if it is a genuine data, getting alerted from EagleAi of such sudden movements would be like a pot of gold for traders who can capitalize on that information.
Configuring EagleAi TradeWatch Market Data Risk module is Easy - as there are ZERO thresholds to configure
EagleAi doesn’t need to be configured with any rules. It is a self learning engine. All it needs is data to be fed and it is ready to learn from the flows across tens of trading risk scenarios and detect any impending problems based on an anomalous trend.
All the common MarketData Risk scenarios that either are required by the regulators or which has caused many firms to lose a lot of money in the past have been built in in EagleAi MarketData Risk module. New scenarios are constantly being added in MarketData Risk module as and when a new market data related loss was encountered by any firm in the industry or when new regulations are added. Furthermore, firms can custom configure more scenarios in EagleAi easily.
