Always concerned with speed, DAS|INC has developed DMAr to further accelerate its execution speeds. DMAr combines aspects of the existing smart routing system in the DAS suite with multiple strategies to ensure order are executed at the lowest costs while boosting speed. In short, it helps you precisely enter and exit your trades, decreasing slippage. DMAr consists of configurable strategies, resulting in limitless combinations, but the two main ones are Ping and Split strategies. These strategies are completely customizable for the differing requirements of each firm.
However, knowing the technical aspects of DMAr may not mean much to someone trying to optimize the infrastructure of their firm. Thus, an explanation of what these strategies are is not necessary, but rather, information about how these strategies are helpful is needed.
The Ping Strategy available in DMAr automatically sends your order to different routes sequentially until the order is completely filled. For example, suppose you want to buy or sell 1000 shares of a particular symbol. With the ping strategy, if the time in force is IOC (Immediate or Cancel), the order will be sent to your first configured exchange, and perhaps only 200 shares will be filled. Further action on your part will not be necessary; DMAr will automatically send the remaining order of 800 shares to the next exchange or ECN on your configured list. Perhaps, again, the order is not completely filled, so the remaining order will be sent to the next exchange or ECN on your list. The foremost benefit of this strategy is the speed at which your order will be filled. But another benefit of this strategy is that it can be configured to send orders to ECNs with the lowest commission or best rebate available, thus optimizing the cost of your trade. Using DMAr will definitely effect your bottom line. While boosting your speed to combat slippage, you can also decrease your commission costs.
Another strategy available is the Split strategy. This strategy automatically sends one order as multiple orders in smaller share sizes. Bypassing the ping strategy, the split strategy does not send the complete order sequentially, it first breaks down the order to smaller sizes and sends it via multiple routes. The execution time is boosted by filling multiple small orders simultaneously. Split strategy takes cues from high frequency traders. It capitalizes on one of their methods, allowing DMAr to give smaller traders the same edge high frequency traders have. Also, the previously mentioned benefits of the ping strategy apply here too.
Adding DMAr to the traders’ swiss army knife that the DAS suite provides will boost speed and profits for users on DAS|Pro. DMAr is fully integrated into the DAS suite, maintaining and boosting the ultra-low latency expected from DAS|INC. If you have any further questions about DMAr and how you can obtain it for your firm, please contact us via support.