Attract clients, increase AUM and reduce costs with a high-fidelity agent-based market simulator for hedge funds
Minimize transaction costs
Know how your trades will perform before they are visible to the market.
Accurately model market dynamics in the world’s first interactive, simulated market environment that reacts and responds exactly like reality. No matter what kind of order, volume, underlying name or time of day, you can assess the permanent impact before executing a live trade.
Use the simulation to calibrate your algorithms using the best set of parameters to execute your trade and assess the impact before going live, or study pre-trade TCA and predict market slippage, optimize metaorder scheduling and execution, prevent delay costs and negate opportunity costs.
Simulate impact of different delay periods between an investment decision and the actual execution to understand the effect of delays on the fund’s PnL.
Because our simulation incorporates market feedback, metaorder scheduling can be optimized and benchmarked for best execution.
Test your trade execution in a risk-free simulation that reports every single execution allowing you to see executed price of trade vs. initial entry price.
Simulate any long-term price movements to estimate costs incurred from any canceled orders: your missed opportunities.
How does market simulation for hedge funds work?
Most hedge funds use historical replay and advanced processes like stochastic PDEs or stochastic modeling with the limit order book; these approaches only produce optimum results when historical data is representative of future market dynamics, which is often not the case, for example, during periods of high uncertainty.
Agent-based modeling (ABM) is a micro-based, bottom-up modeling approach. Unlike traditional methods, Simudyne’s agent-based simulator involves modeling multiple heterogenous agents that interact at microlevel to capture the microstructure and the emergence of the price formation process.
Once you model the characteristics of the market you are trying to replicate, you can use it to discover the best parameters for your trades and minimize transaction costs. Calibrated simulations run up to 300x faster than real time.
Discover how you can accurately model market dynamics with a high-fidelity agent-based market simulator: 300x faster than real time.
Latest market execution resources
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