Recently, EBS , a provider of forex trading has launched EBS Spot Ai automated trading interface, which performs automated forex trading. As well as this, they also offer their own historical forex data, with EBS Lab, where you can test forex trading systems. Their source of their historical data is the same as the live streaming data that the automated trading will be using.
The EBS Lab supports testing of:
1. Mathematical models
2. Arbitrage models
3. Risk management models
4. Streaming executable prices
With EBS automated trading, you can place 20 orders at any one time. It is estimated that about 12.3 billion dollars is now traded via the EBS Ai, which is about 9% of EBS's total traded volume. It's a reasonable amount of trading.
Olsen, founder of Oanda , said in an article on Wall Street Technology, published on August 22nd 2005, that he was building algorithms based on tick data, in order to design systems for high frequency trading. He said very few people were looking into this area of forex trading. In fact Oanda now has their own product called API (Application Programming Interface), which allows users to program and test forex trading systems. The programming language that users will need to be able to program in are C++ or Java.
And now Reuters is also brining their own automated forex trading software into the market in late 2005.
It looks like more big guns are starting to play the game.
