If you're an individual investor, day trader, or just new to the stock market, all the press coverage around algorithms and high frequency trading in the equity markets might feel intimidating, if not frightening. Why do companies race to have their algorithms trade nano seconds faster? What happened in the "flash crash"? How can a long standing trading firm lose $450 million in 45 minutes because of one bug in their code?
This class is for those who want to learn how modern markets use computerized trading, and what this new landscape means for you, an individual investor. As someone who both designed and managed automated computer trading systems, I will explain broadly how these strategies work, and what you should change, if anything, in your investing/trading approach.
Computerized high frequency trading is a topic that is for the most part completely misunderstood. While ostensibly complex, the purpose of HFT is to fulfill a basic function that has been around for centuries. I'll explain why for the average investor, HFT is not a zero sum game, and why for most market participants, high frequency trading can be beneficial. I'll go over the history of how computerized trading developed, how modern day firms think about it, why it makes money, and more. After this class, you will have an excellent grasp of what these systems do and what the strengths and weaknesses are.
I've worked at some of the largest banks and hedge funds in the world. My experience includes analyzing fundamental credit and equity investments, equity derivatives, and most recently as a trader at Goldman Sachs where I developed, traded, and risk managed successful high frequency trading strategi... view full bio