As the volume and velocity of financial market data continues to soar, staying ahead of the competition requires the right trading tools and infrastructure. The purpose of this article is to present an overview of algorithmic trading and to detail the key components that comprise a real-time algorithmic trading system.
What is Algorithmic Trading?Algorithmic trading is the implementation of some form of statistical or quantitative analysis for making transaction decisions in the financial markets. The key principles behind this analysis involve identifying patterns within historical data to predict future market behavior or looking for arbitrage opportunities within various markets. Algorithmic trading is typically broken down into either profit seeking (signal generation) or execution management based implementations...
Part One of Two in a series by Colin Clark, VP Customers, Streambase Systems Inc. at ebizq.net.
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Automated Trader Magazine: Bootstrap
