How do I design high-frequency trading systems and its architecture. Part II

In the first part, I explained basic concepts of architecting a low latency trading system and some examples on how to implement a very fast order book. In this second part, I will explain how to implement the next components and the key part: what pattern to use. 3. Order management system: OMS This module …

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How do I design high-frequency trading systems and its architecture. Part I

In this article, I would like to talk about how to implement a low latency system, modules needed and its system architecture and be focus on the software development side. There are other parts that need to be covered in order to have a complete system, and they might be things like network communications, switches/routers, …

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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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10 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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