CMC Markets has expanded its product line with the launch of signature share baskets, which tracks the price of company shares with similar behavior in price trajectory, that the contracts for differences (CFDs) provider announced on Monday.
“We have developed these unique signature share baskets in conjunction with recognized market experts to allow our clients to follow a specific trading methodology,” CMC Markets’ Growth Head Ed Gotham said on the new product.
“We know they are always keen to explore new opportunities, and the early response to these baskets, designed to focus on strong relative momentum stocks from a range of equity indices, has already been encouraging.”
An Effective Algorithm to Select Stocks
The London-listed company detailed that the first set of these share baskets will be based on Relative Rotation Graphs. The analytical algorithm will identify the stocks with positive momentum when compared to their benchmark indices. Additionally, it will backtest the performances of the stocks.
The shares in the baskets will be picked from benchmark equity indices in the United States, Australia, Germany, Hong Kong and the United Kingdom.
CMC is one of the top CFDs brokers with operations spanning across the globe. Recently, the broker stopped the trading of binary options-like Countdown products in Australia as the country banned the controversial binary options.
“Products like this are designed to offer another layer of flexibility and recognize the increasingly sophisticated needs of CMC’s clients. They understand that investment professionals have no shortage of portfolio methodologies at their disposal, so this addition means we are able to provide yet another genuine innovation for those using CMC’s Trading Platform ,” RRG Research’s Julius de Kempenaer added.
