The the January 2007 issue of Automated Trader Magazine I wrote an article about optimising trading systems. One concept I discussed was firms offering enterprise optimisation algorithms for client use (and fees of course). I found a reference this morning:

FlexTrade FlexPTS Offers Portfolio Optimisation Algos Using IBM Ilog Cplex

The addition of IBM’s Ilog Cplex software to FlexPTS allows the FlexTrade platform to optimise its trading schedule every 15 minutes

..

many firms use “rudimentary algorithms they’ve created in-house to schedule transactions. But in our view, anyone who’s serious about optimisation uses a powerful optimization engine like CPLEX from IBM.

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the ability to define a trading strategy that can adapt dynamically not only to changes in the market, but also to the impact of other firms’ trading strategies.

All of this is in line with my own continued personal beliefs. IBM is offering optimisation as a service. Trading systems are consuming optimisation as a service. The intent is to make trading algorithms more adaptive to continuously changing conditions and to optimise the intended objectives correctly, robustly etc.

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