High-frequency trading (HFT) is a primary form of algorithmic trading in finance. Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities. Here is the collection of 7 videos which explains what high frequency trading in simple terms. Watch How institutional traders take advantage over the other market participants.
Listed Stock options offer the greatest profit potential of any investment vehicle. Profits of 100 percent or more. Risk, on the other hand, is limited to your original cash outlay. Therefore, to attain maximum profits trading listed Stocks options, aggressive investors should never target for a profit of less than 100 percent for most options trades. This will ensure that your target risk/reward ratio is always in your favor.
In case if you missed the Quantcon 2015 a disruptive quant trading event, will break down the existing walls to algorithmic trading by giving you an inside look at tools and content sets. Mebane Faber’s Market Outlook 2015 and EP Chan’s session on “Beware of Low Frequency data” , Tukar Balsh session on “10 ways backtest lie” are my favorites. So here is the recorded sessions happened in Quantcon2015.
In India I meet so many Top broker HFT Desk their return in HFT is not so consistent. When they invested in High end technology & develop their own In house Low latency Order management Engine they get more than 50% return per annum. If they constantly not upgrading their technology then their return tempered& goes down with in range of 25 – 30%.
Time decay can be a wonderful thing for the option seller. In fact, it is the driving force behind the so-called ‘income-generating’ strategies. The trader holds a position, waits, and then exits with a nice profit. When the position is market-neutral, and when the market behaves, all gains can be attributed to the magic of time decay.
For me, having 15 Years experienced HFT & Quant Based Solutions & Fund management person, which I also enjoyed immensely, the market offered an opportunity to test myself and to prove I could generate economic profits for clients. A harsh meritocracy also has its advantages if you enjoy the daily challenge.
We know that VIX most of the time reflects the investor/traders sentiment. When VIX is higher it means lot of fear in the market and lower VIX indicates lack of fear in the market. The problem is the sentiment can be measured only Indices like Nifty as the Volatility Index VIX is derived from implied volatility of Options. In such a case VIX FIX comes handy to replicate the VIX behaviour in other instruments like Commodities, Forex, Stocks.