Bertrand Rassat, managing director - EU salesat
FlexTrade, examines the importance of choosing a trading
technology system that will best suit your trading
Choosing a trading system is often a difficult task for many
hedge funds, because there are many software vendors touting
similar claims about the strengths of their respective systems.
So how do you see the wood from the trees?
In many cases, it is the trading strategies which will
determine the technology required to support them. The
execution process is as equally important as the validity or
performance of a model to generate alpha.
The following questions you should consider asking when
electing a system include:
Are my strategies high frequency? Are my average orders
small or large? Are my strategies time-sensitive? Are some of
my orders contingent? Is slippage a critical factor in my
performance? How much market impact is tolerable? How much
control/transparency do I want over the execution process? Am