Nicholas Pratt
Nicholas Pratt

Achieving more rapid design and deployment of algorithmic FX trading strategies

Everything is getting faster, it seems. And the faster things get, the shorter they last. Whether this relatively unrefined truism can be applied to FX algorithmic trading remains a moot point but, as Nicholas Pratt discovers, it is clear that service providers are devoting an increasing amount of time to building tools that can help to speed up the construction process for FX trading algorithms – from design to development to deployment.

There is a shortening time cycle in the creation of the algorithms as they move more rapidly from conception through testing to live trading. Furthermore, service providers are also offering more tools and techniques to help with the back-testing and benchmarking of FX algorithms thus subjecting them to an ever more intensive level of scrutiny. “We are seeing a whole generation of traders doing things in different ways but because of the economic uncertainty, people want more assurance that the new strategies will be profitable and they want some proof of concept before they will commit the resources necessary,” says Gary Stone, chief strategy officer at Bloomberg Tradebook.  Backtesting As part of a client’s subscription to the Bloomberg Professional service, Bloomberg has developed a number of backtesting tools of various degrees of sophistication and rigour. Traders can design and backtest their strategies on the Bloomberg Professional service and then implement a successfully...continued

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