Eneco has been algo-trading on the forward market for years and wanted to do the same with intraday trading. They needed a flexible solution that allowed them to develop their own algos and to continuously improve and adapt to market changes. How did they meet these challenges?
The challenge: maximising profit in a difficult market
Charel Hakkert has been in charge of trading at Eneco for several years, where he’s gained plenty of experience with algorithmic trading on long-term energy markets. But Eneco’s primary markets, the Netherlands and Belgium, are not very liquid, especially in intraday; traders need every available edge in order to squeeze the most from these markets. So when he was given responsibility for intraday trading, he knew that he wanted the new 24×7 intraday desk to be automated, with minimal interaction required.
Starting with a blank slate gave him the advantage of building a trading dream team: strong in quantitative analysis and programming experience. An IT group specialised in data analytics works closely with the team, making it easy to adapt quickly to market changes or to try out new ideas.
At first they ran short-term trading strategies on their own tools. However, this came with a lot of maintenance and compliance issues. His team had lots of business ideas they wanted to implement; rather than devoting resources to core development, they wanted to concentrate on creating, testing and refining new strategies to close open positions and to extract value from flexible assets.
For energy traders to be successful in the long run they need a flexible system that can be continuously improved and adapted to the constantly changing energy market. The autoTRADER gives us this flexibility and has allowed us to achieve a significant increase in profit. The close cooperation between VisoTech and ETRMServices made the implementation a walk in the park.
The energy market can change quickly, so Eneco most needed a system that enabled continuous improvement of trading strategies to stay ahead of market developments.
To find out more about their chosen solution and how it has enabled Eneco to become more efficient as well as more profitable, please download the full case study.
Image by Ad Meskens – Own work, CC BY-SA 3.0