High-frequency trading is a branch of algorithmic trading that focuses on generating profit using high execution speed. It’s used in areas such as arbitrage trading, signal-based trading, and scalping. In major exchanges, the trading volume generated from these trades—typically by proprietary traders, hedge fund managers, and market makers—is significant.
Developing high-frequency trading strategies requires intraday tick data and a solid analytical tool. MATLAB® provides both. It supports popular techniques for efficiently developing, backtesting, and implementing these strategies:
- Hypothesis testing, machine learning, and pattern recognition
- Trading cost analysis and market impact modeling
- Analysis of financial time series to generate trading signals
- Monte Carlo simulation and model validation
- High-performance parallel computing using GPUs, clusters, grids, and clouds
For more on tools for high-frequency trading, see MATLAB, Datafeed Toolbox™, and Trading Toolbox™.
