HFT will drive the future of finance

(Last Updated On: January 3, 2017)

HFT drives the future of finance

After struggling for the last 30 days or so, I’ve come to the conclusion that designing trading software is no different than architecting it for HFT. In fact, I have come to realize that the fewer dependences you have, the faster your system should be if implemented right.

From a market perspective, most US trading volume is driven by high-frequency trading. This is the future which cannot be denied. It is growing more and more as time passes. The problem is that regulators are not doing their job to protect the little retail trader. In actual fact, it is automation that is killing off this type of trader. As more more software becomes automated, I’m finding it dumber and dumber as better architected systems will reign supreme. It’s like the next generation of retail trader versus a well established institutional or professional trader. What am I saying? I think your coding skills will become the way to differentiate your performance as a trader in the future. The only difference is how you apply your analysis to it. Do you approach your trading as a trader, computer scientist, or mathematician?

Here is an interesting video debating how high-frequency trading effects everyone else

As I mentioned above, it is quite clear that your multithreading/concurrency/multicore strategy will make the big difference in how your system performs. I have listed below some resources that may be useful to you:

Is Parallel Programming Hard? What to do about it?

This link includes some advanced resource tips and advise

C++ Concurrency book learning without TBB?

Note that the above link includes useful code snippets for developing high speed trading systems

I’ll post more as I get to it.

Thanks for reading,
Bryan

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs