What is an alpha generation platform?
An alpha generation platform is an algorithmic trading technology used to develop trading strategies or quantitative financial models that generate absolute returns or consistent alpha. These financial platforms are mainly used by banks, hedge funds and CTAs to aid the testing and development of quantitative trading strategies.
Where have you heard about alpha generation platforms?
Alpha generation platforms are used to aid the development of mathematical and statistical models that help to work out whether or not particular investments will be profitable, as they can pinpoint excess return in the capital market.
What you need to know about alpha generation platforms.
Alpha generation platforms reinforce quants in the making of productive quantitative trading strategies. In the past, computer programming languages have been used by quants to make intricate trading strategies that help them execute high frequency trading. But as market statistics increase and more traders are developing models that deal with various different types of data, quants spend a large portion of time debugging code, programming models and integrating multiple market data authorities. There are major differences between alpha generation platforms and low latency algorithmic trading systems.
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