ECHO Platform Use Case

Real-time Option Scanning System with Automated Equities and Options Trading using ECHO

Objective

Our client had a crucial requirement for a comprehensive solution that seamlessly merged advanced options scanning with automated equities and options trading capabilities. Our aim was to leverage the robust capabilities of ECHO to empower our client to navigate the complexities of options trading efficiently. We meticulously engineered a sophisticated options scanning system, capable of harnessing parameters such as options greeks, implied volatilities, bid/ask spreads, and more, to pinpoint optimal trading opportunities across a broad spectrum of option expirations for a given underlying asset. The objective was to utilize ECHO to automate option trade executions based on the scan results, while also enabling automated trading in equities of the same underlying asset for hedging or executing arbitrage trades across synthetic spreads. Additionally, we integrated a custom layer into ECHO to support the execution of complex option spread strategies, including straddles, verticals, ratio spreads, and calendars, providing users with a versatile toolkit for diversified trading strategies.

Solution

Our team devised a comprehensive solution with ECHO, to ensure seamless integration of trading functionalities. To meet user requirements effectively, we meticulously crafted a custom user interface using Blazor Boilerpoint, delivering an intuitive and user-friendly trading experience. The application was hosted on a DigitalOcean server, guaranteeing dependable and uninterrupted access for users.

Implementation

  • Options Scanning System

    The application featured a highly advanced options scanning system that harnessed options greeks (delta, gamma, vega), implied volatilities, bid/ask spreads, and other critical parameters. This system empowered users to conduct scans across an extensive array of option expirations for a specific underlying asset, enabling the identification of potential trading opportunities with remarkable precision.

  • Automated Option and Equities Trading

    Following the completion of options scans, the application was meticulously designed to automatically execute option trades based on the scan results. Users could seamlessly engage in equities trading for the same underlying asset, facilitating hedging or the execution of arbitrage trades across synthetic spreads. This seamless integration of options and equities trading enhanced risk management and trading efficiency.

  • Complex Option Spread Strategies

    The application offered users the capability to execute intricate option spread strategies, including straddles, verticals, ratio spreads, and calendars. This comprehensive suite of trading options allowed for diversified strategies that could adapt to different market conditions and cater to varied risk profiles.

  • Custom User Interface and Hosting

    Our team developed a bespoke user interface that leveraged Blazor Boilerpoint, ensuring a user-friendly and intuitive trading experience. The interface facilitated effortless navigation, real-time data visualization, and robust strategy management tools. Additionally, the application was hosted on a DigitalOcean server, guaranteeing high availability and continuous access for users.

Results

Through our utilization of ECHO, we not only delivered a cutting-edge options scanning system but also a fully automated options trading system, seamlessly extending its capabilities to trade equities and accommodate complex option spread strategies. This innovative solution empowered our client to significantly scale their options strategy and expand their overall trading opportunities. The seamless integration facilitated by ECHO, connecting options and equities trading, and supported by the user-friendly interface and robust hosting, culminated in an exceptional trading ecosystem. The integration of ECHO not only allowed our client to execute trades efficiently but also to optimize risk management and confidently capitalize on market opportunities.