Chart maker

^{Aim: A module developed to visualise market prices and indicators, and to test back strategies.}

^{The Chart maker shows the prices in candlesticks. The module can show 2 indicators and one overlay in the same time. The system recognises the different candle formations (e.g. Bullish Engulfing) in the chart window and shows them. The statistics module can show with different setting what would have happened if we made decision based on given trading signals. This module is also able to construct statistics of the probability of the strategy’s profitability.}

Option trainings for brokers

^{Aim: To provide a summary of the option market for consultants on capital markets so they can provide broader services to their clients.}

^{A 40 hours long theoretical and practical session was held to the consultants of Codex Tőzsdeügynökség Zrt. During the theoretical part the participants learnt about option pricing models (Black-Scholes, Binomial) and other futures contracts like forex, index, and futures options. The aim of the theoretical training was to help the consultants recognise the need of their clients and offer a more personalised strategy. During the practical training the consultants could try what they learnt with the help of different decision making support and execution programs. The training aimed to perfect the communication between brokers and their clients and to teach them the vocabulary needed to explain complex strategies in a simple way.}

^{Ordered by: Codex Tőzsdeügynökség Zrt.}

Option brochure

^{Aim: To develop a website providing information about a bond issued by an American corporation but marketed by Erste Zrt. in Hungary.}

^{777 Invest LLC develops option strategies and manages trading on the CBOE . The firm has partnered with technologically advanced brokerages such as Option Express Inc. and Interactive Brokers LLC. The headquarters are in Miami, Florida but the firm operates from its office on the Wall Street. Our task was to provide a clear overview on the theory of American options.}

^{The ISIN code of the issued bond: HU0000348099.}

^{Ordered by: 777 Invest LLC}

Zulutrade Professional Materials

^{Aim: To build a transparent and interactive website with training materials which teaches clients to choose forex bots in the Zulutrade system and to set the correct risk levels.}

^{Zulutrade was able to fill the gap between money market information and trading transactions by converting the advices of professional traders automatically to trades. It connects the participants of forex markets, providing opportunity to copy each other real time. The project was to develop the website and several user manuals in order to spread the software in Hungary. The following actions are explained in the manuals: how to choose a signal provider, what factors to use for assessment (drawdown, slippage, statistics, etc.), how to size the account, how to plan a portfolio, and other useful actions.}

Establishing FIX API connection between brokerages

^{Aim: To develop a software which makes the linkage between Interactive Brokers and FXCM trading systems to the other brokerages’ trading platforms.}

^{The software was ordered by Codex Tőzsdeügynökség Zrt. to provide API connection between the systems of two brokerages. The software was built in Unix environment. To ensure appropriate operation in accordance with the software specification, an automated testing}

^{environment was developed. The environment connection of the software is linked to the communication protocols of Interactive Brokers and FXCM. It also determines the communication protocol. The software analyses the requests from brokerages, transforms and forwards them based on which foreign brokerage is targeted by the request. The communication is VPN based.}

Budapest Stock Exchange futures arbitrage

^{Aim: To discover anomalies and examine arbitrage possibilities on the Hungarian stock and futures market.}

^{The futures market behind the stock market on the Hungarian Stock Exchange offers several possibilities for different arbitrage deals and other transactions, due to its illiquidity. The scope of the examination was to figure out how futures with irregular interests appear on the transaction list. A self-developed software was the tool to conduct the examination. It has analysed orders going back several years, their appearance in the order book, the interval between the order and the execution, and the executed transactions.}

Option’s strategy simulator

^{Aim: A simulator program which analyze complex option positions.}

^{The software can handle 4 option position simulations in the same time. The complex positions can be reviewed as a whole while the individual net values can be examined separately. The software is based on the Black-Scholes and the binomial option pricing}^{models. The given instrument’s Implied Volatility and the time until expiration are variables the user can change. The simulation also}

^{shows the following Greeks: Delta, Gamma, Vega, and Theta. The possible inputs are the share price, the historical volatility, the interest rate, and the dividend. The module has an Implied Volatility calculator, which calculates the volatility of the given strike price based on the option’s real price.}

Premiumhunter

^{Aim: A software which can signal pricing differences by analysing a given instrument’s option market.}

^{The system examines a underlying’s option market and the premiums of both the Call and Put side. The aim of the analysis is to discover a strike price and expiration date where a difference between the price of the option and the theoretical premium is present. It defines the theoretical price based on the historical volatility of the share, the dividend, and the interest rates. The output of the software is a list of options which fulfils the determined criteria}.

Investment Consulting course

^{Aim: To train professionals providing investment product sales services.}

^{The future Investment Consultants are trained to provide the following services in the private banking field: providing investment consultations, monitor international tendencies related to investment management , assess the risk aversion of the clients, valuate the clients’ positions, compare the different investment opportunities, manage and lead back office related to investment funds and portfolio management, providing broker services, keep in touch with analysts.}

^{Registration number 11-0019-04 and accreditation registration number AL-0048.}

^{Ordered by: OKTÁV Továbbképző Központ}

Euronext closing auction

^{Aim: To develop a software which prognoses the direction and size of the closing price relative to the last available price during regular trading hours on the Euronext market, based on the closing price algorithm. The aim of the strategy is to open a stock position based on the software’s signals just before the closing. The positions are then flatten at the closing price.}

^{The regular trading closes at 17:30 CET in the Euronext system. The closing prices are determined in the following 5 minutes. This phase is called closing auction. 20-30% of the daily trading takes place in these 5 minutes. There are several factors affecting the closing price which makes it possible to predict the difference between the last trade and the regular closing price. Our aim was to develop a software which helps rational decision making. The program examines the daily changes and changes within the day, the volume of the regular phase and the closing auction, the in-line movement with the index, and the cyclicality in transactions.}

Option portfolio manager

^{Aim: This is such an option portfolio manager software that provides a platform to investors to open virtual accounts, so they can buy, sell, and analyse stock and option positions in a daily updated, real market environment.}

^{The module enables investors to handle stock and option long and short positions in trading settings. The manager program helps to examine complex option strategies in a real market environment. The diagram shows how changes in share price affect the P/L of the chosen combination. The chart image illustrates the changes in the share price. There is an additional portfolio summary window, which gives a quick recap of the total portfolio. The option manager program can assign 4 different option positions and one stock position. Investors can give orders both with market and limit price. The portfolios can be rated based on the change in capital, its market value, or its profitability.}

Stock screener

^{Aim: To develop a stock screener and decision-making support system which helps domestic medium- and long-term investors to make decisions.}

^{We have developed the first stock screener and decision-making supporting system in Hungary which collects the EOD marks of more than 15,000 instruments on the NYSE, NASDAQ, XETRA, ASK, and BÉT (Budapest Stock Exchange). The screening is based on the share price, its volume, the signals of indicators and the recognition of candle formations. The system can calculate the trend and regression lines, the channels, and their difference from the mean within milliseconds. Trading signals of indicators received special attention and the software can follow 20 indicators’ values, process and interpret the results. With the system, one can quantify the momentum of the stock, the strength and size of the trend, the size of the volatility, and the volume indicators. The stock screener system can identify 90 candle formations. Therefore users are able to trade specific patterns, but one can define groups - such as reliability or expected trend - as well. Users can customise their trading strategies, and can monitor its expected success based on historical data. The programme assembles the results list based on current trading signals, using technical analysis tools.}

Risk and Money Management software

^{Aim: A software which makes portfolios much more transparent. Provides a clear summary and optimises the P/L ratio.}

^{The Risk- and Money Management program uses with data with 15 minutes of delay. Then, it provides options to choose appropriate Stop loss levels and it defines support and resistance levels. The program optimises the size of the positions, and the stop and equity risks. For Stop orders ATR-based Chandelier and High/Low-based stop levels are analysed. Pivot points and Fibonacci levels are used to determine support and resistance levels. Stock positions are showing market value, target value, and stop value attributes.}

Option strategy optimisation software

^{Aim: A software developed to compare different option strategies based on certain criteria.}

^{The system calculates the historical volatility of the stock after uploading the inputs. Then, the option chain is downloaded and the volume, the Open Interest and the premiums are assessed based on the Black-Scholes option pricing model. The option chain table contains the following data: basic data, cash-flow, profitability indicators, risk probabilities and combined values derived from these probabilities. The market data is provided with 15 minutes of delay through Yahoo Finance API datalink system. The software can also analyse a chosen strategy in real time with current price, volatility, interest rate, and dividend data. The system also calculates the Delta, Gamma, Theta, and Vega values. Users can categorise the different strategies based on probability indicators derived from the Black-Scholes model.}