FlexEdge

Our Suite of Advanced Analytic Tools

FlexEdge is our suite of advanced analytic modules designed to give traders and portfolio managers the edge they need to effectively plan and optimize their investment process, whether it be predictive forecasting, execution strategy development or portfolio trade scheduling.

Predictive Analytics

Short-Term Return Forecasts and Intraday Volume Forecasts

TradeMap Execution Strategy Designer

Create Your Own Trading Strategies According to Execution Venue

Optimized Portfolio Trade Scheduling

Determine the Best Trading Trajectory for Your Portfolio

Key Features & Benefits

Predictive Analytics

FlexEdge’s 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.

Primary Functionality

  • Supplies intraday bin volume, enhanced volume profile, and end-of-day volume forecasts.
  • Delivers intraday and overnight return forecasts.
  • Generates forecasts and signal strength for 3,000 U.S. equities and ETFs every minute.
  • Use forecasts algorithmically, visualize graphically, or display them in the blotter.
  • Incorporates our pricing engine called FlexLimits, which supplies intelligent, dynamic limit prices that traders can automatically or manually apply to outstanding orders in the blotter.

Performance

  • Cuts volume forecast error 20-25% compared to the historical average across the top 3,000 names.
  • Provides volume profile forecasts to reduce VWAP tracking error as compared to using historical curves (7-10% in simulations).
  • Delivers execution alpha of up to 16 bps intraday with signal coverage of 12%.
  • Provides access to continuous improvements in methodology driven by ongoing research.
  • FlexLimits improves trade performance by systematically avoiding adverse price moves.

TradeMap Execution Strategy Designer

FlexEdge’s Trade Map Execution Strategy Designer module allows traders to easily build an automated trading strategy that is comprised of a series of broker-neutral execution venues.

  • Strategies can be configured to send/cancel/replace to individual venues or in parallel based on timing parameters and a set of rules or triggers.
  • The logic can use any data analytic, such as those related to the real-time market data and order status info for the security being traded. Multiple strategies can be constructed to match the unique complexity and difficulty of the order.
  • Ability to create logic to select which strategy to send to as a function of the difficulty of the order (% ADV, spread, etc.) This will allow the trader to specify how to automatically adjust the method of trading to adapt to the current market conditions for multiple orders so they do not miss any opportunities.

Optimized Portfolio Trade Scheduling

FlexEdge’s Portfolio Trade Scheduler module enables traders to determine the best trading trajectory for their portfolios while minimizing market-impact cost and the risk of underperforming benchmarks. By utilizing state-of-the-art optimization technology, the Portfolio Trader Scheduler establishes the optimal portfolio trading schedule weighing all the available data, such as user inputs, risk factor correlations, implied volatility, the estimated market impact cost, and the trader’s short-term alpha goals. While the system initially employs its own cost model, as well as the highly regarded short-term equity risk models from Northfield Information Services, the Portfolio Trade Scheduler is adaptable to any cost and risk models in use today.

  • Traders can not only optimize their pre-trade schedules, but also implement real-time schedule adjustments due to its extremely fast computation.
  • Minimizes market impact and risk of underperforming benchmarks.
  • Initially employs short-term equity risk models from Northfield Information Services.
  • Adaptable to any existing cost and risk models.
  • State-of-the art optimization algorithms.
  • Determines the ideal start and end time for the trade.
  • Generates trading schedules for part of a day or multiple days.
  • Supports portfolio and industry cash constraints as well as general linear constraints.
  • Enables maximum trading participation within specified time frames.
  • Optimization component also employs ultra-fast computation (20 seconds for 3,000 symbols) allowing for rebalancing during market open.