htX Baskets has been modified to allow Long and Sell Short orders within the same basket.
Read morehtX Pairs Trading Linking Models to external orders
This document describes the 2 ways external orders may be linked to Pairs Models. An external order would be a parent, or master order that originates in some system other than htX.
Read morehtX ListTrading
htX ListTrading is an application for traders who need to manage multiple, or large lists of orders at one time. htX ListTrading allows traders to create multiple lists of orders, either manually or through file import, apply trading strategies to those lists, send slices of the list in a few short mouseclicks, and manage exposure and risk.
Read morehtX Baskets File Import
The htX Baskets supports importing a single file, or groups of files into separate baskets. This post describes some of the features and how to use them.
Read moreThe Math of Pairs Trading Execution – Part II
In our previous post, we introduced a couple of pairs strategies and the math behind the relative pricing of the two stocks. In this post, we will address how to handle the relative quantities, and then introduce another variation of a statistical arbitrage strategy.
We discovered that the relative pricing of the two stocks in both of the previous examples followed a linear path and we could use the trusty old 7th grade algebra equation of y = mx + b to express the relationship.
But what about the relative volume of the two companies? How many shares of each stock should we buy or sell relative to the other? Let’s take a look.
Read moreThe Math of Pairs Trading Execution – Part I
As developers of pairs trading execution software for the past 17 years, we found that the term ‘pairs’ is a somewhat nebulous catchall phrase for many different trading strategies. These include risk (or merger) arbitrage, statistical arbitrage, cross border arbitrage, dual share class arbitrage, leveraged ETF arbitrage, inverse ETF arbitrage, multi-legged spinoff arbitrage, various ‘long/short’ strategies and others. Developing tools for all of these strategies has been interesting and fun, with plenty of challenges. We thought it might be interesting to address some of the math behind the execution of the various strategies.
Read moreHTX Pairs Trading Risk Controls
htX Pairs Trading has a number of risk checks and guards against incorrect data, user error, and extreme market volatility. The same checks are applied to each order/model in the application.
Read moreConfigure Currency Rates in htX Pairs
The Currency features in htX Pairs allows traders to configure and use any currency rate pairs available on their quote feed. It also allows the trader to customize any number of different securities for a specific currency. For instance, the trader could use either the spot rate or the FX future quote to drive the cross border position.
Read moreOrder Types Summary
htX has a number of advanced or algorithmic order types. These orders can all be entered via the single order entry Order Ticket in htX Pro. The algorithms are provided by htX and managed by our Algorithmic Order Servers. These are the algorithms available on htX beyond the standard Limit and Market order types.
Read moreConfiguring Cross Border Pairs
Here are some tips and tricks and things to look for when setting up and trading cross border pairs. Or any type of Pairs for that matter.
Read moreAllocations Basics
htX Pro has an allocations module that allows traders to enter allocation breakdowns post trade.
Read moreHTX Extensions
htX uses suffixes added to the end of symbols, called extensions, to help define the security and determine trading defaults. They can also be used to create customized shortcuts. An extension is added to the end of the symbol and is separated from the symbol by a period. They are similar to exchange codes that you might see in Rics or Bloomberg Tickers.
For instance, the symbol for Barrick Gold Corp in Toronto would be, ABX.TO. In this case, the extension is TO. If there is no extension, then the assumption is the symbol is for a US stock. US stocks have a special case where there are actually 2 extensions, one for Listed securities and one for OTC.
Read more