4 ms·
Can anyone tell me what a "trading strategy" at this level might look like?
by irl_zebra 8y ago
Can anyone tell me what a "trading strategy" at this level might look like?
- deleted 8y ago[deleted]
- opwieurposiu 8y agoUse statistics to find data from today that predicts the price of some financial instrument tomorrow.
- twic 8y agoIn what sense? It's a program (or function, or object, etc) where you feed in events for changes in market data and perhaps other things, and it feeds out commands to buy and sell particular quantities of particular instruments at particular prices. AIUI, that program is typically quite simple in structure: it might work out target prices for some set of instruments based on prices for another set of instruments, with a function that is not necessarily more complicated than a polynomial. Then it buys or sells if the market price is sufficiently different to the target price. The structure of the pricing function will be designed by a quant, and the coefficients in it will be set by fitting to historical data. A lot of the work goes into developing tools and practices for doing that fitting, backtesting the fitting, etc.