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Denys Parkhomenko, Chief Product Officer of GR8 Tech, delves into the complexities facing trading departments in the current year and outlines the role of automation in implementing effective risk management strategies. He also sheds light on how GR8 Tech is assisting its clients in integrating cutting-edge trading solutions to navigate these challenges.
In the realm of bookmaking, trading stands as the backbone, ensuring the equilibrium between favorable odds for players and sustainable profits for the business. Its success hinges on rapid responses to live events, precise mathematical models, and thorough risk assessments.
Making choices between maintaining an expansive trading operations team or outsourcing trading to feed providers presents its own set of challenges. Different feed providers possess exclusive rights for specific tournaments, prompting the need for collaborations with multiple feed providers to achieve comprehensive coverage. These exclusive rights translate to lower latencies and faster updates through official data.
One prime example of this was observed by GR8 Tech, where a significant delay in odds updates for a prominent football tournament occurred due to the absence of official data, underscoring the importance of such partnerships. This situation parallels streaming services, where subscribing to multiple platforms becomes essential for comprehensive and high-quality coverage.
Addressing these challenges requires:
Implementing Integrations with Multiple Feed Providers: This approach not only offers access to comprehensive, high-quality coverage but also diversifies trading options for each event, reducing reliance on a single provider.
Managing Content from Different Feeds: Selecting and optimizing content from various sources is crucial for enhancing the quality of odds offered.
Precise Margin and Limit Management: Diverse markets within a single event have distinct dynamics, necessitating different risk management approaches for each.
Automation as a Cornerstone of Trading Support
Modern trading support relies on automation, powered by Artificial Intelligence (AI) and Machine Learning (ML). GR8 Tech leverages AI and ML algorithms to analyze extensive market data, automate tasks, reduce human errors, and enhance operational efficiency. Continuous learning through machine learning algorithms bolsters risk management capabilities, contributing to higher performance.
Nonetheless, AI and ML present their own challenges. Reliable data is essential for practical machine learning, and GR8 Tech emphasizes high-quality data collection and ethical technology use. The company continuously refines its models to improve predictions and decisions.
The volume of bets in the digital age poses another challenge. Thousands of bets are placed every second, making real-time manual odds adjustments unfeasible. Calculated strategies like real-time bet scoring and automated risk management reactions are necessary for optimization.
Risk Management and Automation
Efficient risk management is crucial to avoid errors in automated systems. AI and ML play a pivotal role in identifying and mitigating potential risks in real time. Advanced anomaly detection algorithms and risk modeling techniques allow proactive monitoring of market conditions, enabling adaptive responses to changing dynamics.
GR8 Tech's risk management approach encompasses accurate risk segmentation using ML models, forecasting future risks for proactive mitigation, fraud detection, real-time monitoring, and tailored adjustments based on business needs.
Trading and Risk Management Synergy
Parkhomenko emphasizes the need for synergy between trading and risk management, as an integrated approach is more potent than isolated actions. The effectiveness of risk management strategies is amplified when supported by appropriate trading systems. This integrated approach has helped GR8 Tech achieve steady growth for its clients' margins over the past three years, and the company aims to extend this success further.
In conclusion, the challenges facing trading departments in 2023 demand innovative solutions. Automation, AI, and ML offer powerful tools for efficient trading and risk management. As GR8 Tech demonstrates, a holistic approach that combines trading and risk management can lead to sustained growth and success in the competitive landscape.
By fLEXI tEAM