Algorithmic and High-Frequency Trading Strategies: A Literature Review
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Philipps-Universität Marburg
Abstract
The advances in computer and communication technologies have
created new opportunities for improving, extending the application of or
even developing new trading strategies. Transformations have been observed
both at the level of investment decisions, as well as at the order execution
layer. This review paper describes how traditional market participants, such
as market-makers and order anticipators, have been reshaped and how new
trading techniques relying on ultra-low-latency competitive advantage, such
as electronic \front running", function. Also, the natural con
ict between liquidity-consumers and liquidity-suppliers has been taken to another level, due to the proliferation of algorithmic trading and electronic liquidity provision
strategies.
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This item has been published with the following license: In Copyright