10 Things That Affect the Profitability of a Trading System

What factors affect the profitability of an automated trading system? Here is a list of the 10 things in no particular order. 1.      System speed: A particular high-frequency trading algorithm may be profitable at high speeds (i.e., at a low mean and narrow the dispersion of decision and messaging times), but not at slower mean speeds …

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Ten Things that Affect the Speed of a Trading System

What factors affect the speed of an automated trading system? Here is a list of the 10 things that affect the speed of a real-time automated trading system, in no particular order. 1.      Programming language and efficiency of the code: The programming language and compiler used to implement an automated trading system will affect the speed …

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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 …

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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, …

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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 …

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