Abel/Noser Announced Launch of Customized Algorithm Platform

The firm has commenced signature algorithmic programs with a handful of clients and is in advanced talks with the buy-side for the offering that customizes algorithms based on a manager’s historical trading style and pattern. A personalized series of graphs and statistical diagnostics are offered so that the trading desk can better implement trades for individual portfolio managers more efficiently.      

Graphics and statistics are produced on a manager by manager basis so the trading desk can visualize the patterns inherent in each manager’s investment style. The program utilizes over 30 fields of adjustable parameters to customize each algorithm to a manager’s trading strategy or risk profile.      

The program begins with a manager’s trading analysis/performance which is compiled from the firm’s database of historical trades and a manager’s trading history. The program then analyzes the market capitalization of the portfolio, the costs as a percent of available volume, the costs by venue, and other trade and market data points to determine the best trading strategy and to identify specific algorithmic variables.       

A custom algorithm is then built from the framework of Abel/Noser’s proprietary algorithm suite that best suits the portfolio manager/trader. The custom algorithm will be named and utilized on all subsequent trades. As a manager’s trading process evolves, the program will re-evaluate each custom algorithm and continue to make changes when necessary.      

“By segregating manager timing from implementation we have been able to clearly depict how the trading desk is intersecting with the timing of manager decisions,” said Peter Weiler, executive vice president of global sales at Abel/Noser, in the announcement. “By doing so the course of action for improving implementation becomes strikingly clear and we can design customized algorithms to suit each manager’s style.”