Testing Trading Systems the Right Way

Testing Trading Systems the Right Way

Trading systems include trading platforms or trading applications. While trading platforms include the software through which investors and traders can open, close, and manage market positions, trading applications are usually multi-product and cater to multi user options and consist of end-to-end functionality that processes numerous volumes of traffic at extreme speeds.

The key to creating and managing effective trading systems is to ensure high volume and effectively low latency throughput. With the activity of traders and money managers around the invention of new strategies, and new methods of electronic price discovery, this paves way for continuous increase in the volume of trades and management of huge amounts of market data. This leads to a huge network traffic from various orders being placed and definitely creates an exponential growth rate for market data. Typically, trading systems employ a set of complex rules within their matching engines in an attempt to perfectly match and handle buying and selling options on top of handling cancel and replace requests.
Read More

The opinions expressed in this blog are author's and don't necessarily represent Gallop's positions, strategies or opinions.