High Speed Trading Engine

High Speed trading for P2P Loans on Lending Club

At Croudify we feel pride in knowing that we are doing our best to get our investors the best returns that they can get. An important part of getting good returns is finding the best loans to invest in. With various funds using the scripts to buy the best loans a lot of retail investors were left choosing from the leftovers and sometimes found it hard to deploy the cash. This prompted us to create our High Speed Trading Engine.

The trading engine is written in a low level language and uses a scalable infrastructure to get the execution of order completed in milliseconds . To achieve this we have deployed our platform on Cloud that spins our virtual servers in real time based on number of users and scales the process to get parallel execution for all users thus enabling all of our users to get the best execution without waiting for others to get done ahead of them.

To illustrate our process we have captured the screenshot of the log that was generated when we ran the simulation to check the speeds. If you look at the image above you will see all the steps involved in the process marked in green numbers. The whole process takes less than 1 second to complete (we are trying to get the log with milliseconds to show actual timelines). The details of the process are:

  1. TIME 14:00:00 – At exactly 2 pm pacific we receive new loans from Lending Club
  2. TIME 14:00:00 – We received 173 loans from Lending Club (which is typical of any new loan release)
  3. TIME 14:00:00 – We have downloaded all the loans and finished rating them using our Proprietary model to rank them from best to worst.
  4. TIME 14:00:00 – Once the Process of rating and ranking the loans is completed we start looking for users and their filters
  5. TIME 14:00:00 – First Parallel process is created to to handle first user
  6. TIME 14:00:00 – Second parallel process is created to handle second user  (all steps after this are for second user)
  7.  TIME 14:00:00 – Get Available cash for the user to find number of loans that can be bought ($64 – means 2 loans at $25 each)
  8. TIME 14:00:00 – Start finding the filters and running them
  9. TIME 14:00:00 – First filter found and executed
  10. TIME 14:00:00 – Best 2 loans found from that filter.
  11. TIME 14:00:00 – Buy order Placed on Lending Club (Order Placed in less than 1 second)
  12. TIME 14:00:03 – Order Confirmation from Lending Club (Lending Club took 3 seconds to Confirm)

You can access the High Speed trading engine by creating investment rules and activating them for auto execution.

As an investor we are looking for all the small advantages that we can find to get better returns we think being fast provides a huge advantage and will help our investors get superior returns.

Also published on Medium.