Kx for AlgoLab is based on Stream for Kx, a platform for capturing, storing and analysing large volumes of data at ultra-low latency and provides a complete environment for testing, validating and profiling algorithmic trading strategies.
The case for regular backtesting of trading algorithms to optimize their behavior under everchanging market conditions has long been established in the front-office. In the wake of Flash Crashes, Central Bank interventions and other market disruptions, regulators, exchanges and internal auditors are now demanding similar regression and stress testing of algorithmic trading strategies to confirm that they are robust and resilient to exceptional market conditions and to ensure they do not lead to price distortion or rogue behavior.
Kx for AlgoLab can be used by trading institutions for internal testing and validation of algorithms or by exchanges to provide a testing and validation service to its members to meet new regulatory requirements and assist in an orderly evolution of the market microstructure. In both cases it offers data capture, market replay, simulation and result visualization capabilities to fully explore the robustness, profitability and performance of new trading algorithms.