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STU Lesson2.6 Transcript

The document discusses the technology standards needed for execution of intraday and day trading strategies, noting that fast signal transmission and order confirmation within one to two seconds is required. Computers should have at least 8GB of memory to run multiple strategies simultaneously, and mirror backups on different computers are recommended in case one goes down. It is also important to have direct connections to a clearing firm and trading desk in case issues arise with order execution.

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52 views1 page

STU Lesson2.6 Transcript

The document discusses the technology standards needed for execution of intraday and day trading strategies, noting that fast signal transmission and order confirmation within one to two seconds is required. Computers should have at least 8GB of memory to run multiple strategies simultaneously, and mirror backups on different computers are recommended in case one goes down. It is also important to have direct connections to a clearing firm and trading desk in case issues arise with order execution.

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rb25master
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module 2, Lesson 6

What is the technology standard for execution?

Andrew: Okay, Martin, so you’ve mentioned what is required for quality


execution, but can you tell us a little bit more about the actual
technology standards that we need?
Martin: Yes. Technology standard can differ from system to system. For many
intraday, day-trading strategies, we need really fast transmission of
the signal from the chart and we need a very fast order confirmation.
Altogether, this needs to be done within one, or at most, two,
seconds. What is also important, if you’re running several strategies,
when you’re doing a portfolio approach, you’re probably going to run
several, 10, 20 strategies maybe at once, so you need enough
memory space, so computers with at least 8 GB memory. And also it’s
a good idea to have mirror backups on different computers. If one of
your computers goes down, then you can really start quickly a new
computer.
What is very important is to be able to be connected to the clearing
firm IT and trading desk if something unexpected happens. It can
actually happen with a broker platform itself that you aren’t able to
really execute the trades, so you have to call the desk and be able to
resolve the issue very quickly, and for that purpose, you really need to
have some staff that you’re connected to directly. And be able to
really deal under stress if something unexpected happens, because,
especially with these day-trading strategies, if you’ve got several
signals at once that go to the market, then it can really be sometimes
very stressful.

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(c) 2017 [Link] / Distribution without author´s approval is not permitted.

TRADING INVOLVES A SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS,
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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