EdgeTrade Claims New Algorithm Allows Traders To Skip Limit And Market Orders

EdgeTrade, an agency broker and developer of algorithmic strategies and direct market access (DMA) software, announced the launch of an algorithm, Sumo, meant to allow traders to complete a single stock or portfolio trade efficiently and electronically, without having to

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EdgeTrade, an agency broker and developer of algorithmic strategies and direct market access (DMA) software, announced the launch of an algorithm, Sumo, meant to allow traders to complete a single stock or portfolio trade efficiently and electronically, without having to resort to limit orders or a market order that can typically leave a trader exposed to poor execution.

“Our quantitative team listens to traders, and what they asked for is an algorithm that would get a trade executed quickly much like a market order but without the risk of showing their hand in one shot,” said Joseph Wald, EdgeTrade CEO. “Hard as it may be to believe, most traders do not have access to an algorithmic tool that enables them to accomplish this.”

Sumo uses smart order routing, which takes a snapshot of a book at one point in time and responds one dimensionally. The algorithm determines how much of an order to send out for execution, the destinations and timing.

“Sumo is a smart order execution tool that operates from a basic premise that getting a trade done quickly, electronically and as a single order without the need of a benchmark, offers far more advantages than going with a limit or market order or even smart order routing,” said Frank Brown, EdgeTrade chief technology officer and chief quantitative strategist. “Sumo also helps free up time for a trader, and is another reason why we expect it will become quickly adopted.”

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