The Gateway to Algorithmic and Automated Trading

Get real!

Published in Automated Trader Magazine Issue 15 Q4 2009

Historic performance data is no longer even remotely reliable as a clue to what’s going to happen next. What does that mean for system designers? Whether we’re modelling for another catastrophe, or planning for the V-shaped, W-shaped, rune-shaped or just wiggly-line recovery, we need to factor in the market’s potential to turn weird so fast that you can’t switch off the machines in time. And how do we do that? For Mick Hittesdorf, it’s all about Japanese cars.

While many segments of the financial industry still struggle to regain their footing in the aftermath of the credit crisis, the popularity and pervasiveness of automated electronic trading continues to grow. There are understandable historical reasons for this, but times are changing and the "old ways" of just a year ago may need to be upgraded to deal with post-crisis reality.

As we know, the very old model of the traditional floor trader, whose success depended on his instincts,

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