BankingBusiness

Pragma: Uses AI To Improve Algo Performance

  • Artificial intelligence measurably improved the performance of execution algorithms in US equities
  • David Mechner, co-founder and chief executive of Pragma, told Markets Media the firm decided to apply modern artificial intelligence tools
  • He explained the firm began to test the neural network in late 2019 with orders sent to the AI algos on a randomized basis
  • Following a number of controlled trials with clients, the AI algos found to improve performance by between 33% and 50%
  • The AI algos react to signals to improve micro-trading decisions, such as whether to be aggressive or passive, routing, sizing
  • Algos also have to adapt to changes in US equity market structure
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Laura M
Laura M
Laura is a financial reporter, editor, and researcher with a particular interest in fintech innovation, capital markets, and the evolving global banking landscape.

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