How This OTC Trading Desk Manages 6 Figures Using CMM
By David - August 23, 2020
In this case study, we reveal the utilization of Coin Market Manager by a western based OTC trading desk. Trading solely via quantitative analysis and automation, this firm was in dire need of reporting and data flow efficiency to accelerate portfolio analysis efforts and maximize trade strategy profitability.
Interviewed for this case study was a trading automation specialist, “Jack”, who piloted the Coin Market Manager product for his firm’s analysis and reporting needs over a period of five months. His background consists of seven years trading experience both in legacy and cryptocurrency markets with three of those focusing solely on trading automation. Strategies employed are a mix of scalping, intraday and swing trades during both trending and ranging market conditions. Strategies utilize entries and exits via limit and market orders, some with stop-losses and take-profits and some without.
Jack explained to us his most commonly used features and their importance to his team.
Trading Portfolio Balance
Jack and his team begin their workday by checking the Total Net Worth section of his Coin Market Manager dashboard. Rather than accessing each account and logging balances manually, this allows them a quick “macro view” of portfolio balances across multiple accounts, in both Bitcoin (BTC) and US dollars.
They find the Balance History feature to be a quick, effective method to toggle between accounts and see balances for each. Rather than sifting through mind-numbing text data, they quickly identify balances that are experiencing drawdown and require further evaluation.
To perform thorough account-level analysis, Jack and his team require more specific data like win-ratio, average win and loss PNL, and funding and fee costs. Coin Market Manager provides the support they need with the Account Analytics feature.
With this deep level of feedback on the performance of specific strategies, the team can then use this to identify potential improvements
Trade History/Performance Chart
While account level-data is important for analysis, what has proven most vital for Jack and his team is strategy performance analysis on a trade-level. The team relies heavily on this tool to quickly see key data points like trade history, win-rate and account gains per trade. Trade histories include the most specific data points like position entries and exits, take-profits and more. Complimenting this data is each trade’s life cycle from open to close overlaid on the instrument’s chart. Jack and the team all agree that the time saved by not having to flip back and forth between this data and an external chart is substantial.
This case study reveals a real-life instance where the rich feature set of Coin Market Manager proves valuable to an active OTC trading desk. It proves to not only save time, but also money. It enables the team to more effectively perform their duties, identify benchmarks and set attainable goals. It allows more efficient analysis, collaboration and portfolio tracking which, in this case, equates to stronger profits and success.