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10 questions every energy trading company should ask

To stay competitive in a rapidly changing market

Energy trading is getting more complicated. Every major spot market is seeing greater volatility and increasing volume, and the growth of renewables means that this trend will continue. At the same time prices are dropping. In this rapidly changing environment, there are several questions every company involved in energy trading should be asking.

1. How important is automated trading?
Today, trading automation provides a competitive advantage by making decisions and executing trades faster than a person can. However, as more trading companies adopt algo-trading, it will become an absolute necessity in order to stay competitive.

2. What use cases can algo-trading support?
Trading algorithms can carry out many strategies and use cases, from position closing to marketing of flexibilities, storage and other assets, to cross-border arbitrage.

3. On which power and gas markets is algorithmic trading possible?
Algorithmic trading is supported by EPEX SPOT, Nord Pool, BSP SouthPool and PEGAS, through standard software solutions certified by each exchange. In-house development or other solutions require extensive conformance testing before go-live.

4. What’s it like for a trader using an automated trading solution?
Less stress, more success! Automation frees traders from the routine tasks of executing trades and allows them to concentrate on the big picture by observing, evaluating, selecting and customising strategies.

5. What automated trading solutions are available?
A wide variety of intraday trading solutions are available that support algorithmic trading. However, they differ greatly from each other in the exchanges supported as well as in the degree of automation and integration. Some merely provide trading algorithms to support manual trading, while a very few others also automate related functions such as scheduling & balancing or power plant management.

6. What’s it like to build your own algo-trader?
A company who decides to build their own automated trading solution will be faced with significant challenges, including complex interfaces, algorithm development and testing, not to mention ongoing support. 

7. How will XBID change energy trading?
With liquidity transitions and many more products, XBID adds another level of complexity to intraday trading, making automation more attractive.

8. Is Blockchain the saviour of energy trading?
Blockchain is the hot topic of the day in the energy world, and many trial projects are currently underway. However, it comes with many significant challenges. The role of Blockchain remains to be seen.

9. What role will AI play?
Artificial intelligence has broad applications in energy trading, from market simulation and algorithm testing to the creation of intelligent trading algorithms.

10. Should we develop our own algorithms?
Many companies are using standard algorithms and are happy with the results. Custom algorithm development, on the other hand, takes advantage of your unique in-house know-how to create strategies that precisely fit your specific situation.


Algo-Trading Innovation Hub

For more detailed answers to these and many other questions, join your peers at the energy industry’s first event dedicated to algo-trading. Speakers from EPEX SPOT, Nord Pool, Deutsche Börse, The Advisory House and more will share their expertise, and traders will share their algo-trading experiences.

The hands-on workshop on Day 2 has already sold out, but a few seats are still left for Day 1. Don’t miss out!

What: Algo-Trading Innovation Hub
Who: Everyone involved with (automated) intraday energy trading
When: June 7-8, 2018
Where: Frankfurt/Main, Wiesenhüttenplatz 25
Why: Learn how to get the most from your trading


associated products



Automated intraday trading on EPEX SPOT, Nord Pool, PEGAS and more

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E-world energy & water 2020
Essen, Germany 11-13 February

Come visit our stand in
hall 2, stand 211
to discuss the latest trends in our fast
evolving markets and how they will impact you.
Make an appointment

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