This post has appeared previously my Linkedin profile. You can check the development progress of the plaform here.

Beginning with questions

🦉 A wise man once said: “you do not write a book because you have answers, you write a book because you have questions”.

Today, I am not writing a book, but I decided to start writing a few blog-style articles here on LinkedIn. Regarding the questions, I have always had very many. Most recently, I have been fascinated by HFT and wondered how these systems are designed.

What is HFT

⚡ High Frequency Trading is a sub-set of algorithmic trading and encompasses many strategies that utilize “speed” as a determining factor for gaining a trading advantage.

🏇 “Fast trading” is not a new concept, and so is not the power of information. Huge profits could be made in the 19th and 20th century by reacting quickly to the news of a political fall from grace, a new industrial discovery, or a recent military victory. In many cases, it was even possible to our run the news itself, as it often travelled at the modest speed of a messenger on horseback.

💎 Today, HFT systems must perform accurately and within few microseconds of a piece of news being released. They implement the most cutting edge algorithms for decision making and data analysis. Around 50 percent of the trading volume in the US is generated by HFT.

The challenge

Whether liked or despised, HFT is here to stay. So how does it work? What does a HFT system looks like? What are the challenges involved in the development of such a piece of software? I hope to answer these (and many more) questions as I develop my very own HFT sim system.

💻 Follow the development of “Moneta, HFT for fun and profit” here, on Linkedin, and on GitHub. I will link the code and talk about every component and challenge faced.

If nothing else, I am sure it will be fun!

Francesco