"Can we say that except for the local internal trading seats in Luncheng, Newtown, Tokyo, Hong Kong Island, Newtown and Jakarta, we are actually the fastest here?"
"By the way," Li "So our system is to develop a set of software based on market effectiveness theory, technical analysis theory, statistics, risk management theory and behavioral finance to automatically generate or execute transaction investment and trading decisions," he said. Arbitrage is achieved through multiple frequency and large-scale automatic transactions in a short period of time. "
"Is this OK?" Mai Xiaomiao asked: "If this is the case, wouldn't this program become like a power amplifier Amplifier? If market demand is the basis of trading, with your means to participate, others have to buy at a higher price and sell at a lower price. This cannot be said that others want to make a real deal. Have you got to pay the handling fee first? "
"Yes," Zhou Zhi nodded: "The consequence of this is that the rise and fall of the stock market will fluctuate even more, and when it rises, it will rise Go higher, fall deeper when the decline is falling. Even if the system can achieve it, will there be risks in law? "
"These are not the issues you consider, at least from the moment there is no problem , "Li Laosan patted his laptop: "Your task now is to let my system run."
"Have you developed it?"
"I don't understand it very much, but I have brought the source code and technical documents." Li Laosan said: "I bought it with a technology company called Baines. , they said it would work. "
"How much did it cost?" "Three million pounds are not considered purchases, but investment acquisitions. After purchasing, it was renamed Baynes Financial technology specializes in this area of research. Intellectual property is all our own."
"Let me see." Mai Xiaomiao immediately became interested.
"Come on..." Li Laosan ran over and waited for this sentence. Now he listened to Xianle, and immediately turned his notebook over: "Look at whatever you want, change it at will!"
The technical documents are based on ISO The standards were formulated and written in detail. No one was too lazy to read the requirements manual, so he jumped directly to the technical solution proposal.
The technical proposal is to refine business requirements into preparation documents before the development of technical implementation methods. By looking at this, you can clearly clarify the system's design ideas, programming concepts, implementation methods, and the final product. Looks.
It is equivalent to the architectural drawings of real estate.
The technology implementation of this system is simple, which is to hand over the user and password of the trading seat to the system, so that the system can automatically log in to the financial securities trading platform that has been opened in satellite trading services around the world, and realize automatic downtime Order, automatic delivery function.
This part of the technology is not complicated and very easy to implement. Compared with Baines's solution, the "system robot" developed by Four Leaf Crull itself directly uses the system's underlying instructions to directly make data and port calls, which is much better than Bei. Ens is much more complex and perfect, so neither Mai Xiaomiao nor Zhou Zhi look down on this function in this system.
The most critical core of this system is how the system analyzes and judges the securities market through its own operations, and then automatically triggers the ordering function.
This involves two major aspects, one is data analysis and the other is transaction type.
The former involves many models that analyze trading trends in various situations, but generally speaking, it is still to use the advantage of time difference to predict the trend in a timely manner, and then buy and sell at various levels. .
In order to avoid his extraordinary trading behavior affecting the market, Baines designed the trading behavior very complicated.
For example, in order to avoid the impact of one's own orders on the market, transactions can be divided into iceberg orders, hidden orders and other orders to reduce shocks, or block silent increase orders, or list the transaction volume weighted average price algorithm and Transaction execution orders such as time-weighted average price algorithms hide their trading behaviors in many transactions through price algorithms and time algorithms, avoiding temporary sudden changes in transaction quantity and price, and making the transaction curve smooth and even. There are also some more rogue ways of doing things, such as the most common high-frequency trading in later generations.
High-frequency trading is a fast execution type of transaction. When there is an extremely short opportunity in the market, you can know and make a profit from it as soon as possible. The entire transaction process may only require In less than a millisecond, intraday slewing trading, arbitrage hedging trading, and mixed hedging trading are generally used as operational methods.
Intraday reversal trading is one or more transactions that conduct positions opposite to the same securities product or derivatives. For the "T+0" strategy of treasury stocks, the above strategy is mainly reflected in the same stock and the market After having a position, it means seizing the slight fluctuations of the stock within one day to make a small difference.
Arbitrage trading is to conduct rapid and centralized hedging transactions between related products, such as ETF component stocks and ETFs, and make a small difference by using the slight fluctuations between the two.
Mixed hedging comprehensively considers stocks, margin trading and ETF redemption to buy and sell two-way positions on all targets at the same time, achieving cross-variety arbitrage or position adjustment.
No matter what means are used, the purpose is to reduce market impact costs or to arbitrage and hedge. These are originally normal securities market analysis and trading ideas.
But after adding automatic high-frequency trading, the situation changed.
High-frequency trading uses computer algorithms and high-speed data transmission technology to conduct fast transactions in the financial market.
By using electronic trading platforms and high-speed computer systems, financial assets are bought and sold at a microsecond rate, thereby achieving profit acquisition. Its core lies in using computer algorithms to make transaction decisions and execute them at extremely high speeds; and performing large amounts of transactions through rapid price fluctuations and trading opportunities in the market to obtain profits.
The ideal design purpose of high-frequency trading is to capture the meager profit margin with a huge trading volume. Because the trading speed is very fast, profits can accumulate small amounts and become more in a short period of time.
No mistakes, one poem, one post, one content, one in 6, one book, one bar, one read!
Quickly identify price differences, arbitrage opportunities and liquidity demand in the market, and use the ability to quickly execute and highly automated to complete transactions almost at the same time as they are discovered.
This fast reaction capability allows high-frequency traders to obtain better trading prices in the market and to quickly exit or adjust positions before price changes.
There are many ways to make money here.
For example, there is a transaction called liquidity kickback trading. The exchange will pay a certain rebate to traders who can provide market liquidity to encourage them to conduct more trading activities in the market.
In liquidity kickback trading, exchanges usually divide traders into two categories: liquidity providers and liquidity acquirers.
Liquidity providers are traders who provide liquidity in the market through limit orders. They usually place buy and sell orders in the market and wait for other traders to take the orders.
The liquidity acquirer refers to traders who obtain liquidity in the market through market orders, and they usually eat the buy and sell orders in the market directly.
In this trading strategy, the exchange usually pays a certain rebate to the liquidity provider and charges a certain transaction fee to the liquidity acquirer. (This chapter ends)