Related Research Articles
Computer programming is the process of performing a particular computation, usually by designing and building an executable computer program. Programming involves tasks such as analysis, generating algorithms, profiling algorithms' accuracy and resource consumption, and the implementation of algorithms. The source code of a program is written in one or more languages that are intelligible to programmers, rather than machine code, which is directly executed by the central processing unit. The purpose of programming is to find a sequence of instructions that will automate the performance of a task on a computer, often for solving a given problem. Proficient programming thus usually requires expertise in several different subjects, including knowledge of the application domain, specialized algorithms, and formal logic.
A text editor is a type of computer program that edits plain text. In Windows, such programs are sometimes known as "notepad" software, following the naming of Microsoft Notepad. Text editors are provided with operating systems and software development packages, and can be used to change files such as configuration files, documentation files and programming language source code.
Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy-and-hold and value investing strategies. It is made easier using day trading software. Day trading is similar to swing trading, in which positions are held for a few days.
SuperCollider is an environment and programming language originally released in 1996 by James McCartney for real-time audio synthesis and algorithmic composition.
In computer programming, a block or code block or block of code is a lexical structure of source code which is grouped together. Blocks consist of one or more declarations and statements. A programming language that permits the creation of blocks, including blocks nested within other blocks, is called a block-structured programming language. Blocks are fundamental to structured programming, where control structures are formed from blocks.
TradeStation Group, Inc. is the parent company of online securities and futures brokerage firms and trading technology companies. It is headquartered in Plantation, Florida, and has offices in New York; Chicago; Richardson, Texas; London; Sydney; and Costa Rica. TradeStation is best known for the technical analysis software and electronic trading platform it provides to the active trader and certain institutional trader markets. TradeStation Group was a Nasdaq GS-listed company from 1997 to 2011, until acquired by Monex Group, a Tokyo Stock Exchange listed parent company of one of Japan's leading online securities brokerage firms.
The Bloomberg Terminal is a computer software system provided by the financial data vendor Bloomberg L.P. that enables professionals in the financial service sector and other industries to access Bloomberg Professional Services through which users can monitor and analyze real-time financial market data and place trades on the electronic trading platform. It was developed by employees working for businessman Michael Bloomberg. The system also provides news, price quotes, and messaging across its proprietary secure network. It is well known among the financial community for its black interface, which has become a recognizable trait of the service. The first version of the terminal was released in December 1982.
Program trading is a type of trading in securities, usually consisting of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions. Program trading is often used by hedge funds and other institutional investors pursuing index arbitrage or other arbitrage strategies. There are essentially two reasons to use program trading, either because of the desire to trade many stocks simultaneously, or alternatively to arbitrage temporary price discrepancies between related financial instruments, such as between an index and its constituent parts.
With regard to futures contracts as well as other financial instruments, slippage is the difference between where the computer signaled the entry and exit for a trade and where actual clients, with actual money, entered and exited the market using the computer’s signals. Market impact, liquidity, and frictional costs may also contribute.
Swing trading is a speculative trading strategy in financial markets where a tradable asset is held for one or more days in an effort to profit from price changes or 'swings'. A swing trading position is typically held longer than a day trading position, but shorter than buy and hold investment strategies that can be held for months or years. Profits can be sought by either buying an asset or short selling. Momentum signals have been shown to be used by financial analysts in their buy and sell recommendations that can be applied in swing trading.
Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans.
An automated trading system (ATS), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the orders to a market center or exchange. The computer program will automatically generate orders based on predefined set of rules using a trading strategy which is based on technical analysis, advanced statistical and mathematical computations or input from other electronic sources.
An alpha generation platform is a technology used in algorithmic trading to develop quantitative financial models, or trading strategies, that generate consistent alpha, or absolute returns. The process of alpha generation refers to generating excess returns. Alpha generation platforms are tools used by hedge funds, banks, CTAs and other financial institutions to help develop and test quantitative trading strategies. Alpha generation platforms support quants in the creation of efficient and productive quantitative trading strategies.
An electronic trading platform is a piece of computer software that allows users to place orders for financial products over a network with a financial intermediary. These products include stocks, bonds, currencies, commodities, and derivatives. The first widespread electronic trading platform was Nasdaq. The availability of such trading platforms to the public has encouraged a surge in retail investing.
In trading strategy, news analysis refers to the measurement of the various qualitative and quantitative attributes of textual news stories. Some of these attributes are: sentiment, relevance, and novelty. Expressing news stories as numbers and metadata permits the manipulation of everyday information in a mathematical and statistical way. This data is often used in financial markets as part of a trading strategy or by businesses to judge market sentiment and make better business decisions.
High-frequency trading (HFT) is a type of algorithmic financial trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons. HFT can be viewed as a primary form of algorithmic trading in finance. Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second.
Forex autotrading is a slang term for automated trading on the foreign exchange market, wherein trades are executed by a computer system based on a trading strategy implemented as a program run by the computer system.
Smart order routing (SOR) is an automated process of handling orders, aimed at taking the best available opportunity throughout a range of different trading venues.
Spoofing is a disruptive algorithmic trading activity employed by traders to outpace other market participants and to manipulate markets. Spoofers feign interest in trading futures, stocks and other products in financial markets creating an illusion of the demand and supply of the traded asset. In an order driven market, spoofers post a relatively large number of limit orders on one side of the limit order book to make other market participants believe that there is pressure to sell or to buy the asset.
References
- ↑ "EasyLanguage® Books".
- ↑ "Strategy Testing - Equities, Options, Futures & Forex Trading Strategies". Archived from the original on 2009-11-21. Retrieved 2009-11-26.
- ↑ Easylanguage: domain specific language for trading stocks (2007-04-16), Lambda the Ultimate: The Programming Languages Weblog
- ↑ "OOEL" . Retrieved 2021-02-26.
