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high_frequency_trading [2010-08-13 07:02] – 87.210.211.132 | high_frequency_trading [2010-11-13 08:33] – 87.210.211.132 | ||
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=== High Frequency Trading === | === High Frequency Trading === | ||
- | High-frequency traders employ algorithms to look for patterns in the market and exploit them. The bots that do the trading at millisecond speed are written by financial-mathematicians called Quants. | + | High-frequency traders employ algorithms to look for patterns in the market and exploit them. An important part of this is Low Latency Trading which uses computers that execute trades within milliseconds. The bots that do the trading at millisecond speed are written by financial-mathematicians called Quants. |
- | Often the highest paid form of Quant, ATQs (Algortimic Trading Quants) make use of methods taken from signal processing, game theory, gambling Kelly criterion, market micro structure, econometrics, | + | < |
+ | Because | ||
+ | -- from [[http://en.wikipedia.org/wiki/Quantitative_analyst|Wikipedia]] | ||
+ | </ | ||
+ | < | ||
+ | Often the highest paid form of Quant, ATQs (Algortimic Trading Quants) make use of methods taken from signal processing, game theory, gambling Kelly criterion, market micro structure, econometrics, | ||
+ | -- also from Wikipedia | ||
+ | </ | ||
- | On the appearance of strange bots in algotrade: | + | Dutch TV showed a great doc ' |
+ | |||
+ | |||
+ | === On the appearance of strange bots in HFT === | ||
< | < | ||
But the algorithms we see at work here are different. They don't serve any function in the market. University of Pennsylvania finance professor, Michael Kearns, a specialist in algorithmic trading, called the patterns " | But the algorithms we see at work here are different. They don't serve any function in the market. University of Pennsylvania finance professor, Michael Kearns, a specialist in algorithmic trading, called the patterns " | ||
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"They are moving the high-frequency services as close to the exchanges as possible because even the speed of light matters," | "They are moving the high-frequency services as close to the exchanges as possible because even the speed of light matters," | ||
- | --from | + | --from |
</ | </ | ||
+ | |||
+ | |||
+ | * [[http:// | ||
+ | * [[http:// | ||
+ | * http:// | ||
+ | |||
+ | === Accidental Art === | ||
+ | |||
+ | {{http:// | ||
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+ | |||
+ | === Lightspeed not fast enough. === | ||
+ | |||
+ | < | ||
+ | The latency disadvantage of globally distributed markets can't be entirely erased by technology, but the comparative lag times for international stock trades in general can be lessened by employing intermediate trading points. Alex Wissner-Gross, | ||
+ | \\ | ||
+ | Securities trading companies could put semiautonomous computers at these strategic crossroads. Programmed with sophisticated buying and selling instructions these computers would act much more promptly to price signals coming from remote markets than if the signals had to travel all the way to the home office.\\ | ||
+ | --from | ||
+ | </ | ||
+ | |||
+ | --- | ||
+ | [[category economics]] | ||
+ |