The last trial to reformulate my question. Forget about the HFT. How could i execute my orders as quickly as possible as a retail trader.? suppose the execution speed sectrum from 0 to 100 and HFT on the 100 edge and retail traders from 0-10 so my question , how to get to 10? I am not talking about the 100 here Got it.. I am still waiting for an answer.
a few years ago the answer would have been to work with a broker or a clearing firm who would let your orders go right to the exchange. It generally took a license.
caementarius Registered: Jul 2007 Posts: 298 11-27-09 11:51 PM So, I've come across names for various program trade algorithms and I'd like to understand what they are about. I figure, if these algorithms are common enough to have names and platforms advertise supporting them, then they are worth trying to understand. I realize these are mostly for institutions to try to get the best prices on buying and selling large quantities for the best execution but I think it's likely good stuff for a Trader to understand for better insight into overall market mechanics. Here is a list of terms: Geurilla (Credit Suisse) Sniper (Credit Suisse) Ambush (Banc of America Securities) Razor (Banc of America Securities) Cobra (Instinet) Nighthawk (Instinet) Dagger (Citigroup) VWAP and TWAP (Credit Suisse) -- I think these are pretty straightforward Inline - FlexTrade Iceberg - FlexTrade Auto Market-Making (from Portware, do we have a good idea what this does? how it manages inventory and risk?) There are more. I know the idea is largely to find liquidity and execute without signaling intent - but can anyone shed some light on the mechanics of doing that? terms mostly from: http://advancedtrading.thewallstree...-algorithms.php http://w4.stern.nyu.edu/news/news.cfm?doc_id=6789
You'll probably have to investigate these on your own as probably very few people here use them; my impression is that these are primarily buyside-marketed algorithms -- they might be termed "HFT algorithms for the institutional buyside" confused: ). I've seen (but mostly ignored) a lot of articles/"research" on these systems, some of which you can find with google.