THETRADETECH DAILY
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KEY POINTS : l Advanced AI has transformed algorithmic trading in Europe , as market dynamics drive demand for improved execution , adaptability and efficiency .
l RBC ’ s Aiden trading platform uses deep reinforcement learning , a technique of machine learning , to adapt to different market or order characteristics and respond to changes in market conditions in real-time .
l A key area of focus is optimising execution performance while minimising slippage against the volumeweighted average price ( VWAP ) benchmark .
l Unlike traditional pre-set algorithms , Aiden proactively explores real time trading patterns seeking to reduce discrepancies between expected and executed trade prices . plores new trading patterns within defined parameters . It has the freedom to discover and act upon new patterns that aim to deliver better execution outcomes . This adaptability ensures Aiden ’ s execution strategies remain effective across various scenarios , including periods of market volatility .
When executing trades more efficiently , traders can avoid unnecessary price deviations . This efficiency allows greater focus on higher-value activities , such as customising strategies to meet specific individual needs , risk tolerance , and investment horizons .
Staying ahead of the curve The Aiden VWAP algorithm marked the first foundational step of Aiden ’ s evolution . In 2022 , RBC Capital Markets introduced Aiden
Arrival Price in North America – the second AI-based execution algorithm that offers a comprehensive solution to the arrival price challenge . With an expanded set of trading actions , Aiden Arrival Price offers greater flexibility over the execution trajectory . It is designed to reduce slippage against the arrival price benchmark by utilising an enhanced reward system and leveraging over 300 data inputs . This allows for continuous performance optimisation .
We are actively engaged towards offering Aiden Arrival to our clients in the UK and Europe and we continue to work closely with clients to push the boundaries of trading technology . In the world of algorithmic trading , AI is not merely a tool , but a catalyst for change setting new standards and expectations . Amidst this transformation , the need to stay agile is paramount . With its adaptability and precision , the Aiden platform is a powerful choice for optimising trade execution , offering a competitive edge in the complexities of today ’ s fast-moving markets .
Find out more Aiden VWAP is now live for UK and European clients via RBC Capital Markets sales and trading desk .
To learn more about how Aiden delivers powerful trading intelligence at RBC Capital Markets , please visit rbccm . com / aiden . To discover more about the research behind Aiden from the Borealis AI team , head to www . borealisai . com or contact ElectronicSalesandTrading @ rbccm . com .
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