Coinado, the subsidiary of Mercury Digital Partners, will now offer algorithmic arbitrage and account management services to clients. In an announcement the company says that being a leading automated trading solution provider in digital currency, it knows what it means to be the first automated trading and management service provider.
According to the firm Coinado will be providing algorithmic trade services to accounts on Bitfinex, Kraken, Bitstamp, and Btc-e. Additionally, more exchanges are planned to be supported in the future. Thus, Coinado.com will provide first class managed accounts at the top Bitcoin exchanges in the world through its proprietary trading strategies.
Coinado uses technology created by Mercury Digital Partners, Inc. and staffed by experienced traders from the same company. It aims to offer the public a cutting edge arbitrage and account management service. Coinado has a robust fraud detection system. Your accounts will be deleted, and you will be banned from any future Mercury Digital services.
Nonetheless, accounts at Bitcoin exchanges are owned entirely by the client, and permission to trade inside these accounts is granted to Coinado.com via API keys that allow for trade but not withdrawal or deposit.
Full user Interface to Securely Track Returns
The press release from Coinado informs that the company provides a full user interface to securely track returns, see daily balances, manage fund allocations, and pay fees associated with the service. Nonetheless, all of these services are provided while its system provides highest in class latency to the major exchanges due to proprietary hardware and colocation with Level 3 backbone (5-8ms on average).
The company also informs that its management strategy is algorithmic statistical arbitrage. Elaborating it further, the company says:
Arbitrage is the simultaneous purchase and sale of an asset in two different markets, in order to profit from a difference in the price. Statistical arbitrage operates on markets where there are measurable mean-reverting relationships between the traded assets. In Coinado we trade when there are dislocations in digital currency prices across venues, and we have high confidence they will revert to their statistical equilibrium.
Nonetheless, Coinado requires two or more digital currency exchange accounts connected to its central server, and will book market neutral trades on behalf of the client in order to profit off of market volatility. Part of Mercury Digital Partners, it is filled with industry professionals from leaders in traditional banking and foreign currency trading as well as experienced programmers.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org