The opportunities that the GDAX exchange provides for crytpocurrency traders is immense. One of the latest announcements that comes from the exchange is that one can now integrate the platform with the popular algorithmic trading platform, Quantconnect. This will allow the traders the opportunity to code their own unique trading strategies.
This is indeed an interesting opportunity for cryptocurrency traders to utilise strategies that were available for many years in more traditional finance. Algorithmic strategies try to make use of computers and programs to spot potential opportunities in a number of different markets. Orders will be placed on the currencies in an automated fashion.
Quantconnect has been around ever since 2011 and was founded by entrepreneur, Jared Broad. Quantconnect gives traders the tools they need in order to develop their own trading algorithms. Traders can code the algorithms in any programming language that they like.
Quantconnect has had a lot of growth in the past year as traders have noted the benefits to live algorithmic trading. The strategy building functionality as well as the back testing activity is up considerably over the year. According to the founder:
Adding cryptocurrency support to Quantconnect was the next logical step for our business
The firm saw a greater need in the amount of quants and computer scientists who were involved in cryptocurrency trading. Now that Quantconnect has integrated with Coinbase’s GDAX, a range of algorithmic cryptocurrency strategies can also be developed.
The integration has also being lauded by GDAX. Adam White, the president stated that the latest integration shows that the mainstream financial institutions are moving towards the cryptocurrency ecosystem. He stated that Quantconnect has now made it easier for traditional institutions to back test their algorithms and trade digital currencies.
The algorithmic trading is not just a positive for those who are developing them, but is also being adopted rapidly by retail investors who would like to pay for some automated system to do the trading for them. For example, we have seen a great increase in the amount of automated robotic cryptocurrency trading systems such as Cryptotrader and BTC Robot.
Quantconnect would also like to expand their integration beyond just GDAX. They are currently in discussion with the Kraken cryptocurrency exchange in order to release a similar version soon.
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