Navigate Volatility with Confidence
We are in a period of uncertainty. Volatility has been in the headlines since the announcement of new trade policies early in April, bringing heightened uncertainty and challenging trading environments across major markets.
In April, we’ve seen Liquidity in key futures markets drop sharply—E-mini S&P 500s are trading at levels not seen since the 2020 COVID selloff, and quote sizes in 10-year Treasurys are nearing their lows from late 2022 and early 2023.
As market depth thins and bid-ask spreads widen, traders face a challenging environment where every execution decision matters more than ever.
At Quantitative Brokers, our algorithmic suite is engineered with deep market microstructure expertise. That foundation allows our algos to adapt, identify favorable or unfavorable market regimes, and adjust their behavior accordingly in real time.
In market environments like today’s, execution quality becomes the competitive edge.
Here are some ways our algos are designed to help our clients achieve better execution in a volatile market:
Futures: Microstructure-Aware Execution
1. Smarter Passive Order Placement
Our Algos assess market regimes in real time. In periods of high volatility, which we define as “unfavorable” regimes, our algos place passive orders deeper in the book, avoiding the top-of-book noise and capturing better prices when possible. This dynamic placement helps reduce slippage while managing risk.
2. Intra-Day Variance Adjuster
Schedule-based algos like Strobe incorporate current market conditions into their execution logic. When the market becomes more erratic, Strobe adjusts its trading pace to avoid large deviations from the base trading schedule and help control inventory risks.
Options: Unlocking Opportunity in Thin Markets
Volatility creates risk, but also opportunity. QB’s Striker algorithm is built to seize that opportunity in options on futures markets. Designed specifically for fragmented options markets, Striker helps clients to:
Discover and seamlessly execute options between ticks
Access hidden liquidity
Execute large orders efficiently with a single button
When volatility spikes, options are your good friend. And Striker delivers the control and visibility that options traders need to move with confidence.
Striker slippage (Q1 2025) *Negative slippage = savings to benchmark
Cash: Smarter Routing, Better Fills
In U.S. Treasuries, volatility can rapidly shift venue dynamics. QB’s Smart Order Router (SOR) evaluates real-time liquidity and volatility conditions across venues. The SOR doesn’t just aggregate visible liquidity; it optimizes the allocation of child orders based on:
Fill Ratios: Venue-specific aggressive and passive fill ratios
Toxicity profiles: Pre-trade market impact estimates, recognizing that venues differ in terms of toxicity profiles
Venue performance can vary greatly during stress conditions, QB’s SOR adjusts its strategy accordingly, ensuring its users the best available liquidity.
Basis Trading: Intelligent Execution in Thin Books
Our basis trading workflows also factor in volatility-driven microstructure changes. When liquidity is thin, our models automatically adjust behavior:
Smaller passive order sizes reduce market impact
Lower legging risk settings prevent overexposure
Real-time adjustments ensure each leg of the trade is handled with optimal care
Clients can further customize risk parameters in our Legger to tighten control and reduce exposure as conditions evolve.
Confidence Isn’t Just a Feeling. It’s a Strategy.
When market volatility reigns, confidence comes from having the right tools and insight to adapt. At Quantitative Brokers, we empower traders to navigate turbulence with clarity, control, and confidence.
Ready to improve your trading performance? Let’s talk.