Digitalization and automation are key fundamentals for our business model and have been implemented in all relevant processes within our trading teams and our support functions. In 2021, we strengthened our Software & Technology team further and initiated our algorithmic trading project.
Automation Drives our Scalability
At MFT Energy, digitalization and automation are key contributors to our strong performance and further growth potential. We have automated most of the trading process from pre-trading to post execution and settlements. By constantly automating and employing robotics technologies, we have increased our execution speed and strengthened our decision making. Both are key enablers for leveraging on our entire business platform and strengthening our performance.
In 2021, the traded volume increased by 170% to 205 TWh, and our teams lifted the number of executed daily trades into the several thousands. Concurrently, our scalability, measured as our ability to convert gross profit to EBIT, increased to 78% in 2021 (2020: 58%). We see this as strong proof of the scalability of our setup, and the ability to leverage and extract further value from our entire business platform
Accelerated Growth within Algorithmic Trading
MFT Energy’s algorithmic trading strategy is based on two main tracks:
- Implement software that combine various sources of market- and trading data to visualize and provide signals to support our traders in their commercial making
- Automation of simple orders to free up time. Now, we are rapidly moving into converting our knowledge, expertise, and initiation into automated and adaptable strategies capable of advanced decision making, while ensuring safety and security through a well-defined algorithmic risk paradigm
Now, we are rapidly moving into converting our knowledge, experience, and intuition into automated and adaptable strategies capable of advanced decision making, while ensuring safety and security through a well-defined Algorithmic Risk Paradigm. The use of algorithmic trading strengthens the quality of the trader’s decision making and increases our performance.
Our ambition is also to help the market ensure faster and more responsive grid balancing leading to more competitive consumer prices. We have already seen the results of these improvements in our performance and expect further and accelerated growth from our algorithmic trading strategies in the years to come.
MFT Energy’s annual report 2021 can be found here