TickIt's Lego-like Algo Design Lab

TickIt’s Lego-like Algo Design Lab
By Jessica Titlebaum
Imagine a virtual design lab where you could create algorithms with Lego-like building blocks. No scripting or programming code required. In this design lab, trading functionalities have been built into icons you piece together to form and execute your trading strategy. 
TickIt Trading Systems claims to be the first technology provider to offer the simplified method of building algorithms with their Algo Design Lab. 
TickIt holds weekly webinars to introduce the functionality to market participants and to answer frequently heard questions. In the design lab, users see a white canvas with icons on the left of the screen. Each icon represents a different trading functionality and when threaded together, the Lego-like building blocks create an executable algorithm.
The Algo Design Lab consists of a range of building blocks, which allow traders to assemble everything from market maker blocks to spread trading blocks, which can automate custom spread strategies.
“We took a fundamentally simple approach to creating blocks,” said Richard Lane, the lead developer and co-founder of TickIt Trading Systems.
According to Lane, the Spreader block is one of the most sophisticated blocks in the lab and one of the few blocks they suggest placing in the middle of the canvas when creating an algorithm. 
Another block they recommend being “the center of gravity” on the canvas is the Conditional Buy Sell block, which enables market-making functionalities.
Nate Edwards, customer support at TickIt Trading Systems, showed participants how to recreate the Market Maker block with the Conditional Buy Sell Block for a more customized algorithm. While connecting the icon variables, Edwards explained the difference between the two market making approaches.
“The Market Maker block gives you more control over the creation, modification and deletion of orders,” said Edwards. “For example, you would have more control over these aspects when you are trying to extract information for the bid price. The Conditional Buy Sell block will give it to you when your order is generated but the Market Maker block will give it to you when your order is filled.” 
Edwards added that beginners should use the Market Maker block. 
He also said that the block was designed with safety in mind. He explained that a common concern is of algorithms spinning out of control and filling more orders than it is supposed to. To prevent unwanted trades from taking place, the Market Maker block has memory built into its functionality.
“For example, you have it designed to buy five E-mini contracts and when that order is filled, the Market Maker block remembers that the order has been filled,” said Edwards. “You would have to go out of your way to design an algorithm that continually fills five lots.”
Besides safety, TickIt Trading Systems kept in mind that ease of use was a factor for their users. They offer functionality called Virtual Blocks to help participants keep customized algorithmic variables grouped together.
Edwards explained that Virtual Blocks provide users the ability to group functions together and have that block be available for future use.
TickIt Trading Systems set out to simplify the way algorithms are designed. It seems almost anyone can create an algorithm with as much ease as it takes to build a castle out of Legos. 
Edwards had this piece of advice for beginners.
“Many people design algorithms around how they think. Start by placing the design icons with the input on the left and the output on the right.”