MirkDüllerPremiumFong

Inspiration

Inspired by a local german fund manager, who shall remain unnamed, we are trying to do things not the way he does. That means, we actually want to make profit with our algorithm

What it does

Get the Spread and Trade: The algorithm identifies arbitrage opportunities by monitoring the price spread between related stock pairs. When it finds a significant spread, it executes simultaneous buy and sell trades to profit from the price differences.

Respond to News: It also analyzes news affecting stock prices. Based on the news sentiment, the algorithm adjusts its positions and trading strategy, meaning if the conventional arbitrage opportunities do not work out as desired the algorithm exploits this by selling or buying according to the news. This allows performance and risk management at the same time.

Sell All to Manage Risks: Periodically, the algorithm liquidates all positions to cut opportunity costs. This strategy minimizes potential losses from holding positions too long and frees up capital for new trading opportunities.

How we built it

We used Optiver's very neat Optibook and the Online IDE of Cloud9 running on Amazon Web Services in combination with our years of python experience to build the (hopefully) best algorithm.

Challenges we ran into

One of the primary challenges we encountered was the Optiver team's frequent changes to parameters of the simulated market exchange, which required us to continuously adapt our strategies and approaches. However this kept us alert and motivated us tu further improve and reevaluate our code.

Accomplishments that we're proud of

While working on the project in a very constructive, friendly and relaxed attitude within our team, we still managed to establish a reputable name for ourselves on the first day. In addition to that we had the luck of randomly meeting at dinner and the kickoff-workshop on the first day which allowed us to form this team in the first place and to build new friendships over the weekend.