Sean Gilman Chief Technology Officer at Currenex, Inc.
Sean Gilman Chief Technology Officer at Currenex, Inc.

Demystifying Algorithmic Trading

Sean Gilman explains what algorithmic trading models can do for the FX trader by improving execution performance through better order management and strategies that reduce market impact.

First Published: e-Forex Magazine 24 / Algorithmic FX Trading / July, 2006

Employing trading algorithms has been the buzz lately on FX trading platforms, but to believe that algorithms could take the place of traders is to believe in Hollywood fairytales. The movie “p”, a grainy, black and white art film - not particularly good, but interesting nevertheless - tells the story of Max Cohen. Max, a brilliant but troubled mathematician, is obsessed with Pythagoras, Archimedes and Leonardo da Vinci, and uses his home-built supercomputer, Euclid, to analyze exchange markets and predict performance utilizing a pattern in π.The movie presents a series of hysterical perspectives insinuating that everything in this world is represented by a numeric pattern that, once discovered, is the singular and foolproof recipe for success in exchange markets. It’s the proverbial “buy low, sell high” trading model that every undergraduate dreams about. Given the obvious volatility within the marketplace as well as an increasingly competitive bank-side, over...continued

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