Algorithmic Trading: What do I really need to do?

Issue 10 Q3 2008
Automated Trader Magazine

Some bright spark is suggesting that your organisation needs to build its own execution algorithms. They loudly point out all the advantages your competitors have gained by doing this. But what is actually involved in embarking on such a project? Dr Paul Lynch, managing partner of PE Lynch LLP, spells it all out.

By Dr Paul Lynch, managing partner of PE Lynch LLP
By Dr Paul Lynch, managing partner of PE Lynch LLP

Why are you building algorithms?

The answer to this most fundamental of questions is (or should be): to reduce trading costs, increase productivity and attract new business. Stick to this answer, repeat every hour and you might produce something useful. Or not start in the first place… ...

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