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The Back Story

How investor-relations officers invented the new way to trade stocks

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benzinga global fintech awards winner badge for 2021

Winner: Market Structure EDGE

Best Day Trading Software

Launched in 2020, Market Structure EDGE is the culmination of a 20-year odyssey in US equity “market structure.”

Market Structure is a jargoned term describing the mechanics of how stocks trade. Rarely do traders or investors consider how the mechanics of the market affect prices and market performance. Everybody just supposes that all the factors determining outcomes reside outside the stock market in news, headlines, financial performance, and so on.

Well, it’s not true. The mechanics of the market are the great equalizer, and a crucial element in predicting when prices are most likely to rise or fall.

How do we know? The founders are veterans of the investor-relations (“IR”) profession and became experts in the rules governing how stocks trade – that’s Market Structure.

Investor relations is the corporate liaison between Wall Street and publicly traded companies.

Seeing by experience how mechanics frequently trumped financials and headlines, the EDGE founders launched ModernIR.com, in 2005, today the largest provider of quantitative behavioral market data – the same concept behind EDGE – to US-listed public companies.

The team at ModernIR became known in the IR community as the Market Structure Experts. That reputation for expertise spread beyond IR and Tim Quast soon was speaking and writing on market structure and offering thought leadership in the financial press. In 2017, the United States Congress asked Tim to provide written testimony on improving the markets for public companies and investors.

Tim and Karen holding hands, walking down the sidewalk

Tim and Karen Quast, Founders.

Through relentless data science, the team at ModernIR found that certain of the metrics they created and followed have predictive capabilities for future stock-price movement. Forecasts helped public companies establish realistic expectations about the connection between price and earnings.

Public companies depend on data to understand the equity market and make the best use of it. Thus, Market Structure EDGE is a natural follow-on from ModernIR, but for a much larger audience.

You can’t beat the market if you don’t know how it works. With Market Structure EDGE, simple metrics representing supply and demand for stock, shares of public companies, form the basis for better entries and exits, better opportunities in any market environment, better risk-management.

That’s why EDGE won the 2021 Benzinga Global Fintech Award for Best Day Trading Software. It’s not just for day traders but it offers uniquely defined and reliable ways to see when supply/demand imbalances offer profit opportunities. No other platform does that.

Why are we the only ones offering a market-structure product to traders? Because we started at the only place one can learn the relationship between broker-dealers, trade-executions, rules and market behaviors. We founders of EDGE were investor-relations officers, veterans of the corporate job that connects big public companies to Wall Street.

And that’s where we first saw the data, connected the dots, modeled it, and learned that it’s really the only way to understand the stock market.

We do one thing, and one thing only, and we do it very well. Market Structure. We build software, algorithms and mathematical models that measure the stock market like a grocery store. There are consumers of stocks, and they don’t all have the same purpose.

But all of that can be measured. And we turned it into a way for traders to get a true advantage in a stock market that’s 100% electronic, 95% algorithmic, heavily intermediated, and packed with short-term arbitrage.

And that’s EDGE. And it is an EDGE. A huge leg up on everything else traders have been using. Thanks for using EDGE!