Paineiras Investimentos, a Brazil-based hedge fund specialising in the local equities, futures and options markets, has chosen Xenomorph’s TimeScape data analytics and management system to help it develop a wider range of trading strategies.
According to Andre Portilho, trader at Paineiras, the company will use TimeScape to manage its daily trading and historical tick data databases, and perform back testing and analysis for its trading strategies and algorithms.
Employing the Xenomorph system has allowed Paineiras to broaden its trading horizons. “Once you start working with a broader range of asset types and start to create strategies based on intra-day movements, it is impossible to handle that with our existing tools, such as SQL and Excel,” Portilho told theTRADEnews.com. “We had to choose another platform that could handle this amount of data at a reasonable speed.”
Another reason for migrating to a more sophisticated data management system was the increasing electronification of Brazilian trading. “In the Brazilian market, all the futures used to be traded in the open outcry market,” said Portilho. “Last year, everything moved to electronic platforms.”
As well as allowing Paineiras’ traders to automate trading strategies, TimeScape will enable the firm to work across asset classes. “That means we can gain scale,” said Portilho. “If we think one strategy is profitable we can try to apply it to a wider range of assets.”
Paineiras is also planning to expand internationally. “Next year, we expect to start trading in more international markets, beginning with the Brazilian ADRs that trade in the US market. We will also test some cross-market strategies, such as US index futures against Brazilian stocks and index futures.”
In addition to Xenomorph’s TimeScape, Paineiras aims to be up and running on Progress Software’s Apama complex event processing platform by the end of the year. “We will take all the algorithms that we have programmed, tested and optimised using Xenomorph then use Apama to deploy the orders and the execution into the market,” said Portilho.