How to build an HFT for forex market FX ($EURUSD $EUR $USD)

To build a solid FX high-frequency trading environment is an extremely challenging exercise. A HFT engine usually contains the following components: liquidity aggregation, trading strategies manager, execution strategies manager, and risk analytic. Liquidity aggregation involves the utilization of today’s advanced network and computer technologies to extend the connections to as many market participants and liquidity … Continue reading How to build an HFT for forex market FX ($EURUSD $EUR $USD)

How to protect trading intellectual property from software developers?

This story is about how we, as software consultants/architect and developers, must have a huge amount of creativity, besides hard science knowledge. It was about 5 years ago, I was approached by a consultancy company that had a project for one of the best-known banks, to create their trading systems. It’s not the everyday project, … Continue reading How to protect trading intellectual property from software developers?

Which is better: Discretionary or Systematic Trading?

A discretionary trader will still have rules, i.e. a system, for deciding when to enter and exit positions. Most successful discretionary traders even have their rules written down or entered into a trading platform to automatically flag them. Many use software screens to find securities that meet their criteria. Their manual review may consider factors … Continue reading Which is better: Discretionary or Systematic Trading?

How easy is to make money as HFT startup?

Short story, is not easy at all. Recently I’ve been approached for many startups looking for setup their own HFT shop because they’ve heard how profitable this business is. And they are right! I know for a fact that serious firms are making fortunes (look what Virtu Financial or Citadel are doing). One firm called … Continue reading How easy is to make money as HFT startup?

Best Practices on HFT low-latency software

After several years developing high-performance trading systems I come up with some rules of thumb. When talking about low latency/high frequency trading, I’m talking about software that must make a buy or sell decision within 20us (microseconds). In order to achieve these things, I’ve learned that I need to forget everything about modern software engineering. … Continue reading Best Practices on HFT low-latency software