MBF Group
Trading systems are used to streamline the process of analyzing information by creating a set of rules or methodologies to make an investment decision. The enormity of the number of trading techniques and strategy-building methods can be overwhelming for any trader, no matter how much experience he or she has.
MBF Group S.A., together with its subsidiary MBF Inwestycje Kapitałowe Sp. z o.o. has been conducting ongoing research and development work on algorithmic trading and HFT (“High Frequency Trading”) for several years. Companies develop systems for their own use and on behalf of third parties (according to the specifications provided and accepted).
The concept of an automated trading system was first introduced by Richard Donchian in 1949, He used a set of rules to buy and sell funds. Then, in the 1980s, the concept of rule-based trading became more popular when well-known traders such as John Henry began using such strategies. In addition, technological improvements increased accessibility for retail investors. Already in 2014, more than 75 percent of stocks traded on exchanges in the United States (including the New York Stock Exchange and NASDAQ ) came from automated trading system orders.
When trading in the global financial markets, a trader is tasked with deciding whether to buy or sell an instrument or stay out of the market. The tools available make these decisions complex and varied, and can range from analyzing press releases or company fundamentals, identifying statistical anomalies using historical data, or simply using technical analysis to study through price charts the past behavior of market participants.
The components of a successful trading strategy can include a full step-by-step process: checking the fundamentals, a long-term context and short-term view of the market trend, specific technical indicators that can help you make buying and selling decisions, position sizing rules or overall portfolio risk management. The various components will vary depending on the types of strategies, methods and style the trader uses.
Algorithmic trading is a method in which a trader uses computer programs to enter and exit a position. The trader codes a set of rules and conditions under which the computer program will operate. Algorithmic trading is also known as algo trading, automated trading, blackbox trading or robot trading.
The introduction of e-commerce has opened the door to the world of finance and economics for many people. Thanks to the fact that it is now possible to trade from almost anywhere on earth and there is no need to go to the exchange building in person, more and more individual investors have seen in this a huge opportunity to multiply their savings. Today, to trade effectively, all you really need is a device with Internet access. Brokers of all kinds are outdoing themselves in creating their innovative trading platforms and technological solutions, which makes more and more people trade with smartphones or even smartwatches, the so-called “smartwatches”. smart watches.
Automated trading systems and electronic trading platforms can perform repetitive tasks at speeds orders of magnitude faster than any human equivalent. Traditional risk controls and safeguards that relied on human judgment are not suitable for automated trading, which caused problems such as the Flash Crash in 2010 . In some electronic markets, new controls such as trading curbs or “circuit breakers” have been introduced to handle automated trading systems.
Sources:
https://admiralmarkets.com/pl/education/articles/forex-strategy/systemy-transakcyjne-2020
https://comparic.pl/high-frequency-algo-trading-przejmuja-rynki-traderzy-straca-prace
https://pl.qaz.wiki/wiki/Automated_trading_system
https://pl.qaz.wiki/wiki/Algorithmic_trading
https://bossafx.pl/edukacja/automatyzacja-handlu-mql4/automatyczne-systemy-transakcyjne
