As reported in the Hedge Fund Intelligence Database, nearly 60 percent of hedge funds lost money in 2011. But, Bit Capital Arbitrage, Inc. reported double-digit returns. It largely attributes this financial success to high-frequency trading.
Panama City, Panama (PRWEB) February 02, 2012
Bit Capital Arbitrage, Inc. has wrapped up another wildly successful trading year. Bit Capital Arbitrage, Inc’s propriety trading algorithm enabled high-frequency trading to yield double-digit returns for their investors.
“Overall, most investment companies performed poorly last year,” says William Harrison, General Manager for Bit Capital Arbitrage, Inc. “However, high-frequency trading outperformed the market. On average, this type of trading achieves higher returns than normal investment strategies. ”
According to the Hedge Fund Intelligence Database, nearly 60 percent of hedge funds lost money in 2011. Bit Capital Arbitrage, Inc. investors, therefore, ended the year far ahead of almost all other investors.
High-frequency trading is defined as, “The use of sophisticated technological tools to trade securities like stocks or options.” Bit Capital Arbitrage, Inc. uses computerized algorithms to analyze market data and determine trading strategy. On average, positions are turned over quickly, as quickly as fraction of a second, but not longer than several hours.
“We build our own, in-house, proprietary trading software which captures arbitrage opportunities in markets around the world,” explains Harrison. “It’s this software coupled with our high-frequency trading expertise that allows us to profit in volatile markets.”
Managed futures’ funds, which try to latch onto market trends, are making money from declining bond yields and falling equities, as investors seek safe havens amid the Euro zone debt crisis and after the U.S. credit-rating downgrade. Reuters reported that high-frequency trading now accounts for 60 percent of total U.S. equity volume, and is spreading overseas and into other markets. These traders stand ready to buy and sell shares at all times, providing the liquidity that keeps markets moving. As a result, trading is now cheaper and easier than ever.
About Bit Capital Arbitrage, Inc.
Founded in 2008, Bit Capital Arbitrage, Inc. is a private, algorithmic high-frequency trading investment company. It is led by a professional team of financial software engineers and quantitative analysts.
of Bit Capital Arbitrage, Inc.