As electronic trading has transformed the markets, tools such as algorithmic trading and Direct Market Access (DMA) have afforded investors much greater control over how strategies are executed. However, in order to gain maximum benefit from these tools it is vital to have a thorough understanding of them. 'Algorithmic Trading and DMA' is a new book by Barry Johnson, which aims to offer a detailed guide to the theory and practice of execution strategies using both DMA and trading algorithms.
The book is intended to bridge the gaps between market microstructure theory and actual execution. Coverage is provided for all the major asset classes and markets, from stocks and bonds to foreign exchange and derivatives. All the major order and algorithm types are described, together with a detailed review of transaction cost analysis (TCA). More topics, such as portfolio and multi-asset trading strategies, handling news and artificial intelligence, are also explained.
The author's net proceeds will be donated to research into multiple myeloma (cancer of the plasma cells). Currently there is no cure for myeloma: it is the second most common blood cancer, but funding for research and support is still a lot lower than other better known cancers, such as leukaemia.
'Algorithmic Trading and DMA: An introduction to direct access trading strategies' by Barry Johnson, (4Myeloma Press; February 2010; $49.99; 978-0956399205; Paperback) is available from amazon.com. There is also a dedicated website (www.algo-dma.com) which offers a preview of the book.