RBC lets clients trade alongside it with new FX recommendation service
Hedge funds and real money clients looking to shake up their FX trading strategy now have the option of basing their trades on proprietary market analysis from RBC.
FX clients looking for recommendations with the reassurance of knowing the party making them is transacting alongside them can now do just that with a new service from RBC Capital Markets.
In May, the bank introduced its active macro overlay strategy (Amos), a daily FX trade recommendation service that looks at speculative flows through FX markets to track and identify where markets might be heading.
Created by the bank’s FX quants team in London, the model examines trade events to looks at where speculators have been putting money.
It models flows during the past 24 hours to work out the aggregate flow for that day and then maps out the data over the last week and the last month.
“The best signal is obviously for all these flows to be going in the same direction,” says Rob Turner, FX quant trader at RBC and the creator of Amos. “However, we also consider the stock of outstanding positions over a much longer period.”
Each of these factors has a different weighting, which is used to inform the overall view if they don’t all point the same way.