Tuesday, April 27, 2010

High Frequency Trading

An article found Here discusses high frequency trading. I am giving below a graphics from the site which explains what high frequency trading is:

A comment from the site:

This chart is a great example of what's wrong with using the term "High Frequency Trading" to mean so many different things. To me, true HFT strategies are those strategies which wouldn't be viable without the ability to enter and exit a position in under a second.

Three of the strategies mentioned here -- Filter Trading, Momentum Trading, and Technical Trading -- usually don't even involve sub-second holding periods.


Amarrdiip Kumaarr said...

First, I would like to thanks you for providing guidance regarding trading.

I am always be the follower of you & ashwani ji.

I have been in day trading for 3-4 years as fulltime. And I trade NIFTY & Stock, my monthly avg. winning comes 60% in both segment.

Recently, I was looking for some job site where many firm for post of technical analyst demand 85% accuracy.

Quite a few month I have also achieve 85% in nifty but fails to maintain consistency of 85%.

I want to know, as you are my Senior & much more experienced in trading.

Is consistently 85% accuracy is achievable? And like to know your views on performance, accuracy & perfection in trading or in technical analysis.

My own experience say maintaining 60% is better than avg. & 70% is start trader.


Rashmi said...

Dear Sir,
Thanks for your very useful posts i just want to know - to calculate the range of nifty what should we consider ... defference between open and close or deffrence between open and high ??