Sell Side Technology 12/02/10
Author: Michael Shashoua
Titan Trading Analytics plans to gear its TickAnalyst automated behavioral trading system to small hedge funds and proprietary trading firms whose size prevents them from developing similar capability and technology themselves, according to vendor officials.
“Smaller hedge funds have told us they have looked into getting the historical data, the complex event processing engine, tick database and hiring quant analysts and a development staff, and find they can’t possibly afford it all,” says John Coulter, CEO of Titan Trading Analytics.
Titan now has three brokerage firms (which cannot be named) completing proof-of-concept plans to begin using TickAnalyst, according to Coulter. TickAnalyst is available as a software-as-a-service (SaaS) interface, as well as an application programming interface (API) to stream trade recommendations into proprietary applications or black boxes other than Titan’s.
“The browser-based version is more for those who want our inclusive lightweight EMS and post-trade analytics,” says Coulter.
Titan also has recently hired Brett Decker as product manager, who will be responsible for running its product engineering group in Dallas, where he had previously worked as IT development manager for the hedge fund Maverick Capital.
TickAnalyst, in every format, uses pattern recognition algorithms that capture emotional elements ranging from euphoria to panic that that become evident in the trading prices and market data. The technology recognizes patterns that have previously occurred multiple times and can point out if a security is trading based solely on emotion and therefore is overvalued or undervalued, at times days in advance of a market correction, says Coulter.