Paul A Aston

Holistic Process Algorithms – The future of FX algos will be in handling a lot more than just execution

June 2023 in Buyside Perspectives

FX algorithms have improved considerably over the past few years. We’ve gone from the tired and parochial offering of the TWAP/VWAP variants to an era of smart algos, which can replicate complex trading strategies, switch between passive and aggressive modes of execution, optimally route orders, and react to changing market conditions.

But, as far as we’ve come even these “next-generation” algos are still mired in solving problems only at the point and time of execution. What’s really needed are holistic process algorithms. These algos represent hybrid technologies that combine several stages of pre-trade, in-flight and post-trade logic to optimize critical tasks and decision making throughout the investment-trading process. Holistic algos would combine execution logic with transaction cost analysis (TCA). They would aggregate and analyze complex sets of microstructure data and produce But, as far as we’ve come even these “next-generation” algos are still mired in solving problems only at the point and time of execution. What’s really needed are holistic process algorithms. These algos represent hybrid technologies that combine several stages of pre-trade, in-flight and post-trade logic to optimize critical tasks and decision making throughout the investment-trading process. Holistic algos would combine execution logic with transaction cost analysis (TCA). They would aggregate and analyze complex sets of microstructure data and produce

But, as far as we’ve come even these “next-generation” algos are still mired in solving problems only at the point and time of execution. What’s really needed are holistic process algorithms. These algos represent hybrid technologies that combine several stages of pre-trade, in-flight and post-trade logic to optimize critical tasks and decision making throughout the investment-trading process. Holistic algos would combine execution logic with transaction cost analysis (TCA). They would aggregate and analyze complex sets of microstructure data and produce

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