Skip to main content

Posts

Showing posts from June, 2010

High Frequency Trading...

HFT has been the way to trade for quite a while now in the developed markets. Stock markets have evolved from physically transferring papers between participants in closed rooms called 'Market Place' to now being capable of electronically trading shares in plain nano-seconds. While a few years ago, a sophisticated market participant was one who adopted disciplined investment strategies considering fundamentals and valuations of companies, investing with a time horizon, with patience being the rewarding factor, today its the quants that are considered sofisticated scraping alpha with the use of quantitative strategy models, identifying patterns of trades programmatically, interacting with the market through algorithmic trade execution systems, etc. Stock exchanges in developed countries are being pounded with millions of trades in matter of seconds in the name of HFT. While the biggies in the trading community have systems of robotic compound that have the capacity to push ul