Top Hedge Fund News, Member Posts, Hedge Fund Daily Indices and more!

3yrs ago Hedge Fund hedgeweek Views: 418

Pragma launches execution algorithms with deep-learning capabilities for equity trading

Submitted 20/01/2021 - 10:20am

Pragma, an independent algorithmic trading technology provider, has launched a new generation of deep-learning enabled execution algorithms. 

Pragma initiated the project in 2018 to see if deep neural networks could be applied to an execution algorithm’s micro-trading, engine–governing decisions such as the routing, sizing, pricing and timing of orders – and deal with complex multi-dimensional trading challenges more effectively.  
 
Following a beta launch in 2020, Pragma managed a number of controlled trials with its clients. It observed a significant improvement to execution quality, with an average shortfall improvement of 33 per cent to 50 per cent across billions of traded shares.  
 
“If you just want to add an ‘AI label’ to a product, it is easy to do so,” says David Mechner, Co-Founder and CEO of Pragma. “But getting a material, measurable benefit in average shortfall requires a lot of ingenuity. It took us a year and a half of intense research and development before we had our first version in production.  
 
“The benefit of AI models is that it allows us to better tailor our algorithms’ use of dynamic real-time signals and market conditions to the complex, multi-dimensional interactions of stock characteristics and order requirements. There is no one-size-fits-all approach to trading, and simple stylised models just can't match the power of a deep neural network. 
 
“2020 was a great proving ground for these algorithms. We have a number of enhancements planned in 2021, which we expect will bring even more benefits to our clients.” 

Author Profile Tags Trading & Execution Technology & software solutions Robotics & AI

Today's Hedge Fund Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.