Jacob Loveless explains the technical issues when pushing high frequency trading systems to the edge of their capabilities.
I am a former high-frequency trader. For a few wonderful years I led a group of brilliant engineers and mathematicians, and together we traded in the electronic marketplaces and pushed systems to the edge of their capability.
“HFT (high-frequency trading) systems operate and evolve at astounding speeds. Moore’s law is of little comfort when compared with the exponential increase in market-data rates and the logarithmic decay in demanded latency. As an example, during a period of six months the requirement for a functional trading system went from a “tick-to-trade” latency of 250 microseconds to 50. To put that in perspective, 50 microseconds is the access latency for a modern solid-state drive…read more by Jacob Loveless.
Jeff is the founder of System Trader Success - a website and mission to empowering the retail trader with the proper knowledge and tools to become a profitable trader the world of quantitative/automated trading.