Prop Trading
Recently, we’ve been seeing an increase in negative trends at prop firms. Common issues being faced include high audition pass rates, clients becoming difficult to track (and even harder to classify and treat differently), volatile markets with pricing being increasingly exposed to automated arbitrage, and nefarious traders sweeping, machine gunning and arbing using insider knowledge to unfairly raise profits.
Fortunately, our bespoke technology is capable of identifying and resolving these issues quickly and effectively, immediately increasing PnL along with a number of additional benefits. MFXCompass offers cutting-edge strategies we have developed to reduce the risk of volatility and losses, balance flow, and remove unnecessary costs by automating certain processes:
Reduce pass rates with our flow management: decrease client PnL via judicious strategies, and simulate real-world market conditions with increase competition while keeping complete fairness amongst client competition.
Automated client classification: categorise trading behaviours to swiftly identify negative behaviour and refine classifications.
Gold standard price formation: We employ our predictive price signals and advanced filters to customise rates and qualify liquidity, enabling our clients to protect against rapid market changes and the threat of arbitrage.
Liquidity reduction: use our software to make astute decisions on accounts taking advantage of your book, seamlessly adding small premiums to trades as and when bad practice is detected.
One example we’ve had particular success in dealing with is machine gun trading, controlling access to the graduate pool, and using our classifier to identify toxic traders and mitigate their impact. This is just one example of many instances where we’ve helped prop firms reduce the impact of negative trading behaviour and safeguard their business against all manner of risk.
Combining the above techniques and applying them to your operations could protect you from the impact of similar negative trends and future-proof your business.
Don’t forget to look at your mistakes as well your successes from the past year - learning from these is crucial for business growth. Check out our blog about how you can learn from your mistakes to find out more.
