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How Automation is Helping Investors With Trading Strategies

trading strategies

Ever since the financial crisis, people have become more risk averse.  Nirvana Systems through its new product [1], OmniVest, is addressing the need of active traders to continue playing in the market with managed strategies delivered online.

OmniVest is a fully automated user-driven investment system that uses the software-as-a-service (SAAS) model. It enables users to make informed decisions and implement multiple trading strategies, using historical performances. Users can opt for subscriptions to the company’s acclaimed strategies, which are then combined to form a portfolio of strategies. Some of its highly acclaimed strategies include the RTM7, the T3 Strategy Suite and the NSP-41 strategy, which have consistently beaten the market every year since 2000.

It is the combined power of a portfolio of such strategies that forms the basis of the automated trading system. This new product keeps the user or investor in the drivers seat, letting them configure the trading account for growing investments, while enforcing counter-risk strategies.

Founded by Ed Downs in 1987, Ed is an engineer by training and had specialized in Design Automation. This interest in automation led him to experiment with the stock and options markets and ultimately start the company to develop automated trading technology solutions for individual investors and brokers.

Its flagship products include OmniTrader and VisualTrader trading platforms as well as the MarketScans software. The underlying dominant theme for the company’s products and development efforts has been to help traders make more money in less time with less effort.

However, the 2008 market decline was a particularly traumatic experience for the company. The reduction in trading volumes led to a dramatic rise in cost of sales and increased competition. This pushed the company to reinvent itself and that is what has ultimately led to the OmniVest product.

The product was released as a paid beta to its customer base in October 2012. Since then, the company has sold $1.2 million in subscriptions. The subscription includes an automation program called The Trade Processor which allows subscribers to connect the product to their live brokerage accounts.

Their competitors include companies that provide ‘Mirror Trading’ in non-broker individual investor accounts, such as Currensee as well as companies that provide strategies for rent, like Collective2 [2] and The Machine. Of these, The Machine is the only competitor that offers a portfolio of strategies.

Ed maintains that their approach is quite different from that of The Machine and that its users find the returns from their product superior to those from The Machine. A recent survey conducted in May 2013 by the company showed that over 80% of the respondents were making money and the average annual rate of return was 56%.

The company completed OmniVest as a “Minimum Viable Product” in March 2013 and is now enhancing it with more strategies. To accelerate revenue growth and complete its transition from a trading software company to a software-as-a-service company, they are looking to partner with brokers. OmniVest generates revenue for brokers by automatically trading the user’s selected strategies, day after day, with no further input required.

The need of the hour in the trading sector is to innovate and provide solutions that address important current issues. And OmniVest strives to deliver by leveraging brokers’ existing customer bases to increase trade volumes and commission revenues, offering low-risk trading strategies.

SAAS [3] Photo via Shutterstock