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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Toxic flow in forex market

Believe it or not, there are many banks and ECNs that haven’t catch up with the latest technology with trading systems. And that’s certainly is a problem for them since out there are HFT firms that are heavily investing in technology and being as fast as possible. The term ‘toxic FX flow’ often has a …

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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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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 …

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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. …

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Unlock the secrets of High-Frequency Trading systems

Data structures that are contained within a single cache-line are more efficient. Use appropriate containers (e.g. prefer reserved std::vector than std::list) Organize your data to avoid alignment holes (sorting your struct members by decreasing size is one way) Don’t neglect the cache in data structure and algorithm design Use smaller data types Beware of the …

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Options Backtest: Iron Condor – SPX – 38 DTE

Iron Condor Backtest - SPX - 38 DTE We will look at the automated backtesting results for four variations of a 38 days-to-expiration (DTE) SPX "no touch" Iron Condor (IC).  As with the prior backtests, the short strikes for both the call credit spreads and put credit spreads will be at approximately the same delta. …

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