FlexEdge is a predictive analytics module that 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.
•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 3000 U.S. equities and ETFs every minute.
•Use forecasts algorithmically, visualize graphically, or display them in the blotter.
•Cuts volume forecast error 20-25% compared to the historical average across the top 3000 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
Many sell-side member firms sponsor FlexDMA servers for hedge funds and buy-side institutions who can use the member firm's IDs to send orders directly to an execution destination of choice without it ever hitting a broker's system. Thus, sell-side firms increase the level of trading services they provide to clients and buy-side traders gain more control and speed.