EquaMetrics has closed $4.5 million in funding for its platform that helps investors with no programming experience create their own trading algorithms.
The flagship product, RIZM, lets traders design trading strategies using a “drap and drop” interface with 30 different variables. Traders craft an algorithm that reflects their strategy, and the program will automatically buy and sell stocks and currencies.
Financial organizations use algorithmic or automatic trading technology as part of an overall investment strategy. Computers can crunch numbers, make decisions, and trade equities far faster than humans. However these tools are controversial because some say they give traders unfair advantages, while others say they can lead to major losses or smaller returns.
Equametrics is not geared towards high-frequency trading (which has caused ‘flash crashes’). Rather it seeks to take the technology that has traditionally been reserved for major banks and hedge funds and make it more accessible to a wider community of investors/traders.
The company was founded in 2011 by Chris Ivey, a Harvard grad who wanted to “establish what Wall Street 2.0 means to the world.” This $4.5 million round came from private angel investors. EquaMetrics is based on New York.