EquityFeed Adds 'Idea' Algos

"We are using algorithms to allow end-users to customize parameters for stocks they are interested in," says EquityFeed chief executive Stephan Touizer. "Then our technology scans the market every millisecond from open to close, and as it finds stocks that meet that setup, it delivers them in real time."

The application, which provides streaming data from Nasdaq, the OTC Bulletin Board and Pink Sheets in real time over the Internet, features three main displays for Idea Generation, Monitoring and Fundamentals. The new Idea Generation module contains screens for setting up Streaming Filters, Trading Alerts and Limit Alerts, an Actives Montage, and a page of News and Fillings.

The filters allow users to select specific ranges for criteria that traders might use to monitor stock activity-for example, by trades, volume or price movement, either in dollar values or percentages-which the system then aggregates, adding and removing stocks in real time based on whether they still meet the criteria.

Touizer says that users can initially select from between 15 and 20 categories, though the vendor will expand that number over the next couple of months to around 200 categories.

The product supports four types of Trading Alerts-notices of when a stock breaks its high or low price for the year, when it breaks its average over a specific number of days, or breaks specific volumes, which traders select via drop-down menus.

Meanwhile, the Limit Alerts function enables traders to set up the system to flash or beep when a stock passes a pre-set limit for any of the criteria.

"Previously, traders had to do a lot of digging and looking through charts. Now they can put that on 'cruise control.' The system will notify them of trading opportunities, then they can look at that particular equity and decide whether or not to get involved," Touizer says. "This is the next generation of filtering. Market data is moving from being passive and knowing the stocks ... to finding and delivering stocks that meet your requirements in real time," he says.

For example, if a trader wants to see which stocks have a level of momentum, he can set up the system to monitor for only those stocks that have traded a particular multiple of their volume from the previous day's trading, and will be notified of all the stocks that cross that threshold. "Then a trader can make his move before the rest of the market has time to factor that into their decisions," Touizer says.

In addition to the idea-generation tools, the vendor continues to provide data required for analysis, including charts and Level 2 data that provides an indication of supply and demand, and every announcement from stocks traded on Nasdaq, the OTCBB and Pink Sheets that might not be carried on major newswires, so that if a search returns a company that a trader is not familiar with, he can easily access news relating to that company.