Home How can technology make traders better at their decisions and maximize returns for brokers at the same time?

How can technology make traders better at their decisions and maximize returns for brokers at the same time?

How can technology make traders better at their decisions and maximize returns for brokers at the same time?
by admin

Starting  with the brokers side,  in order to maximize returns , brokers must find ways to increase the so called Customer LifeTime Value , which means that they need happy & successful traders  in the longrun.

And that means mainly 4  things ,

  1. State of the art trading tools customized for each trader’s unique profile in order to maximize winning trades , manage risk better & have staying customers
  1. CRM & data analytics tools to understand  their traders better & offer customized products to them
  1. tech tools to increase transparency & conform with regulations
  1. education & community building tools.

 

 On the trader’s side , traders can use technology  :

  1. For better risk management & risk/reward optimization adjustable to each  trader’s unique profile. We all know that the main reason for the failure of traders is the total  lack of or bad risk management.
  1. For trading signals generation  based on machine learning algos , which in realtime can find the best optimum trades based on certain criteria & backtested data.
  1. To save time when looking at various metrics of the markets, like multiple timeframe backtesters for various assets & various combination of assets.
  1. Last but not least for products like options, to synthesize & pursue more complex strategies involving volatility selling & buying, portfolio & risk/reward optimization using options & building of delta neutral strategies.

Definitely , there are many more other ways of using technology to provide a much better product/service to traders. The above could be a good start for any broker looking to escape the commoditized business of just executing some orders.

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